Online dating app Bumble (NASDAQ:BMBL) will be reporting results tomorrow after market hours. Here’s what to look for.
Bumble missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $268.6 million, up 3.4% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter. It reported 4.14 million active buyers, up 13.9% year on year.
Is Bumble a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bumble’s revenue to decline 1.4% year on year to $271.7 million, a reversal from the 18.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bumble has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Bumble’s peers in the consumer subscription segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Roku reported revenues up 16.5%, topping estimates by 4.5%. Netflix’s stock price was unchanged after the results, and Roku’s price followed a similar reaction.
Read our full analysis of Netflix’s results here and Roku’s results here.
There has been positive sentiment among investors in the consumer subscription segment, with share prices up 6.3% on average over the last month. Bumble is up 14.5% during the same time and is heading into earnings with an average analyst price target of $7.14 (compared to the current share price of $7.43).
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