The display outside the Nasdaq MarketSite is pictured when dating app operator Bumble Inc. (BMBL) made its debut on the Nasdaq Stock Exchange during the company’s initial public offering in New York City, New York, United States, on February 11, 2021.
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Bumble’s shares fell sharply on Thursday, falling below the $ 43 market price. The company announced its first quarter results on Wednesday and issued a forecast that some analysts considered cautious.
The dating company’s stock fell as much as 12% to hit an all-time low of $ 41.54 apiece.
Bumble expects total revenue for the second quarter to be in the range of $ 175 million to $ 178 million, up 31% year over year in the middle of the range. This is also a little better than analysts surveyed by Refinitiv expected. It has raised its guidance and now expects full year revenue in the range of $ 724 million to $ 734 million.
“We’re cautiously conservative because of the nature of the pandemic … neither of us can predict what will happen globally later this year,” CEO Whitney Wolfe Herd told CNBC’s TechCheck. The company isn’t signaling that we don’t believe in the strength of our business, she added.
Bumble reported revenue of $ 170.7 million for the quarter, compared to $ 79.1 million in the first quarter of 2020. Analysts were expecting $ 164.6 million. The number of paying users also increased by 30% to 2.8 million.
Some analysts viewed the report as a “mixed bag,” Loop Capital Markets analysts said in a Wednesday note. The company cut its price target from $ 65 to $ 45 but retained its hold rating.
“The problem was an implicit decline in the 2H outlook,” BTIG analysts said Thursday. “The guide contradicts the call comment (increased engagement, geographic expansion of premium, and new a la carte features). We think it was more about making pillows (few companies get more than a beat compared to a first quarter) still uncertain environment. “
Jefferies also cut its price target from $ 82 to $ 65, despite the company saying it continues to be a top mid-cap recovery game. Stifel lowered its target price from USD 78 to USD 66, indicating the cautious forecast regarding the pace of reopening and the recovery of the global economy.
“With significant indications of the pent-up demand for online dating services revealed in the first quarter, we see Bumble as a strong recovery trade and would be buyers of the stock’s recent pullback,” Stifel analysts wrote on Thursday.
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