Q2 2022 Bumble Inc Earnings Call

August 10, 2022

Yeah.

Good day, and thank you for standing by walking through the Bumble second quarter 2022 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on one on your telephone.

Please be advised that today's conference is being recorded.

Now I'd like to hand, the conference over to your Speaker today, Cheryl Valley Swiler, Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us to discuss bundled second quarter financial results with me today are with a Walker founder and CEO Sarak socket, President and CFO .

CFO assemble.

Before we begin I'd like to remind everyone that certain statements made on this call today are forward looking statements.

Forward looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs assumptions and information currently available to us.

Although we believe these expectations are reasonable we undertake no obligation to revise any statement to reflect changes that occur. After this call descriptions of these factors and other risks that could cause actual results to differ materially from these forward participation.

Discuss in more detail in our earnings press release and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2021, and our subsequent periodic filings.

During the call. We also refer to certain non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results.

Conciliation to the most comparable GAAP measures are available in today's earnings press release, which is available on the Investor Relations section our web site at IR, that's on bolt ons.

And with that I'll turn it over to Whitney.

Thanks, Cheryl good afternoon, and thank you all for taking the time to join our call today, we delivered strong second quarter result, reflecting the power of our product the relevance of our mission and the enduring human need for love and connections. We built on our momentum from last quarter into Q2, delivering total group revenue.

$220 million driven by strong growth in bumble off revenue.

Total paying users across bumble in Baidu App reached over 3 million with bumble app, adding over 149000 paying users sequentially, a greater increase than in each of the past two quarter. We also reported adjusted EBITDA of 55 billion and nearly double free cash flow from last year, a strong bottom line.

Result, reflecting both revenue growth and continued financial discipline.

<unk> continue to power, our overall growth with revenue up 33% year over year to 170 million, primarily driven by 31% increase in paying users.

Before we dive deeper I wanted to provide some more context around the resilience we have seen so far with and bundle up I founded bumblebee make relationship better safer and more equal for women that remains our north star and is as important now as at any time in our history because of the unprecedented challenges women.

Are facing we are grateful to be in a consumer business that helps people with one of their most fundamental needs. Some kind of meaningful connections that need exists whether you are in a pandemic or in a high inflation in recessionary environments, We believe Buffalo App unique brand and trust with our users, especially women combined.

With our leadership and product innovation is what's driving our success in the face of overlapping macro challenges are up provides tremendous value. When you compare the cost of a monthly subscriptions with the cost of a typical first date, especially once you factor in the convenience selection discovery fund and safety features that we offer.

Turning back to our Q2 performance, we delivered strong results and bumble apps traditional markets as well as the international growth market. According to third party data sources in the second quarter, we gained download Sharon almost all of our major markets, including the U S, Canada and the UK, our authentic womens <unk>.

<unk> and our products continue to resonate in both our core markets and internationally in the U S and Canada, we are seeing existing users engage retain and re engage at a high rate. Importantly, we are also seeing early signs, but new users are coming into the fold now that COVID-19 has become more in demand or market.

<unk> programs, including Bumble IRL, our expanded college program and our it started on Bumble success story platform are resonating with users and helping us to increase brand awareness and user engagement.

Outside of the U S and Canada, we are very pleased with our continued download share gains as well as a reminder, our international market expansion like our U S growth is built on the back of our brands and is powered on the foundation of organic user demand. We amplify this demand through our decade long experience in product localization are best in class.

Field marketing program and through Influencer in performance marketing.

This approach ensures that we build sustainable growth in markets that not just toehold each market.

Let's talk about this by region.

In Western Europe , our market expansion efforts continued to deliver strong results.

We are seeing robust user growth across the region and even faster revenue growth in Germany bundle was the number two most downloaded dating app in Q2, the momentum continued into July and we ended the month with bundle as the number one most downloaded dating app in Germany. According to multiple third party data sources, we are incredibly proud of.

This result, and believe it continues to demonstrate the power of our model, we expect to focus over the next several quarters on deepening our presence across our launch markets and expanding into other parts of Western Europe .

Looking at Latin America, Mexico continues to perform well and our recent launches in Brazil, and Chile have established a strong initial market covers for US we are continuing to build depth in these markets to drive both user and revenue growth and we'll be extending our efforts to Columbia and Argentina in the second half of this year.

Finally, turning to Asia, we are particularly excited by the traction we are seeing a lot of activity. This year has been focusing on improving the localization of our products in key markets, including for Japanese Mandarin and Cantonese speakers, while amplifying organic demand in our launch market. India. For example is a market that continues to deliver for us.

And our recent localization improvements and brand initiatives are delivering rapid user growth with revenue more than doubling year over year. Similarly, our efforts last year in southeast Asia, including Singapore, Indonesia, The Philippines continued to perform well looking forward, we are particularly excited by the early results.

Our localization efforts in North Asia, and expect the region to be a focus of our 2023 effort once the situation on the ground allow.

We are also very pleased with our team's execution against our product priorities for this year, we continue to take a thoughtful and user focused approach to product development all centered on providing an experience that is designed with the needs of our womens customers top of mind.

We test our product extensively to make sure they lead to the right outcome for our users. We then expand to the market to learn from our users and really understand how to land the product at scale.

We then roll out other markets.

Fast but responsible.

In Q2, we brought our broad portfolio of discovery oriented products to market, we've been testing complements our message before match offering in Australia, Germany and based on the positive results. We're seeing we expanded the test earlier this month to select markets in the U S.

Been encouraged with early results, which suggests that those who spend complements a better higher quality matches and conversations and some markets. We've also been testing a broader suite of product enhancements such as video and audio that provide our members with richer and more dynamic profile. We are encouraged by the engagement in these new products features and anticipate rolling these.

The other markets in the future to better serve our underrepresent as communities on Bumble. We also launched substantial product enhancements for LGBTQ plus people and we began investing in features that will deliver a significantly improved experience for underrepresent ethnic and cultural backgrounds. These product initiatives are important for our mission.

As for our user base, especially Gen Z and we will continue to expand our addressable market.

Finally, we are experimenting with new engagement models to better serve our women user can help drive market to that end, we recently launched a new weekly astrology oriented event with <unk>.

With over 75% of active members in the U S. Adopting zodiac pads on their profile. This is something that our user base is ask for through the year astrology Tuesdays have led to increases in daily active users on those days and are an example of how we're working to expand the frequency of use from humble by designing through womens.

<unk>, which enriches the experience for all.

We pair these engagement driving future with our highly efficient and innovative monetization program Q2 was focused on a number of paywall and pricing optimization to drive payer conversion and as we look to the second half of this year. We have an exciting set of new monetization features based plan. We're just starting our monetization test for complement.

And we continue to be excited with task around virtual goods. Later this year, we will start launching our segment specific offerings, starting with college students and women user <unk>.

Lastly, I'd like to spend a moment on bumblebee as far as you know we are building out our next generation offerings, which centers on helping people find electronic connections through small communities, which we're calling height.

We have shared before our approach is built on the insight that people want to find friends acquaintances and connections through shared struggles in com enjoys moving to a new city navigating parenthood, finding a partner for hiking or really anything else in between we've recently expanded our alpha testing to the whole of the greater Toronto area.

We are excited about the results we've seen with no external promotion the FF member of created thousands of high within these new ways to connect we're seeing a deepening of engagement. We've seen the weekly average number of customers for these members increased by two thirds and their weekly time spent in App is up 16% we are listening closely.

The feedback from our early adopters to continue to make it easier and more joyful to discover relevant highest who joined gets no. Other members in your highs and coordinate events to spend time in person.

Now turning to our other data yet to do and other revenue, including route totaled $51 million in Q2 down 14% year over year. It has been a challenging first half for Baidu, we of course exited Russia and Belarus earlier this year.

As they do sort of the more economically sensitive user base. It has also felt the effects of COVID-19 and now the macro environment much more than bundle up. Despite these monetization headwind, but do continues to be the second most downloaded dating app in the world with a very broad geographic footprint and a high proportion of long tenured.

Highly engaged members, we appointed a new general manager for Baidu in here too.

Actively working on defining the go forward product strategy and operating model for the business in the immediate future. We are focused on simplifying our user experience to make the product easier to understand with the primary goal of driving higher adoption for our paid features for example, we've been optimizing our consumable offerings such as chat for credits and extra shows.

Which enabling users to message before a match and increase their overall activity. While it is early days in recent months, we have seen improving revenue trends in many markets and a return to revenue growth on a constant FX basis, and some of our large markets such as Poland, and the Netherlands, given reduced brand and scale it as organic traction in many long tail market.

Southeast Asia, where we have historically spent very little on product or marketing, we're going to take a more active approach to testing both localization and marketing efforts in countries within southeast Asia.

Finally, Q2 marked our first full quarter with fruit fruit is aligned with bumble inks mission by focusing on encouraging transparency and honesty and data.

It, particularly resonates with Gen Z users in Western Europe , and Canada. We are pleased with the progress on integration fruits is already leveraging the expertise of bubble, Inc. In areas, such as safety and moderation and strengthening its monetization platform.

It continues to be fuelled almost entirely by organic demand and has established itself in a close competition for the most downloaded dating app in France.

In closing our business has been resilient and I am proud of the execution and results. Our team has delivered it really is an extraordinary time.

Grateful for the opportunity to earn the support and trust of our users partners <unk>.

And investor by focusing on our mission and customer through operational excellence and financial discipline.

Now I will turn it over 'twenty, one to talk about the financials.

Thank you Whitney and good afternoon, everyone. We delivered another strong set of results in Q2 with total revenue approaching the top end of our guidance and adjusted EBITDA exceeding our guidance.

Again with the discussion of our second quarter trends and results before turning to our outlook for Q3 and the full year.

Unless stated otherwise the comparisons I will make the second quarter of 2022 versus the second quarter of 2021.

Total company revenue in Q2 was $220 million up 18% driven by strength in bundle.

That was a $9 million headwind to our top line this quarter with the continued strength of the U S dollar relative to the euro and British pound we.

We saw an additional $5 million of negative impact from our decision to discontinue operations in Russia and delivered primarily impacting Baidu app.

In aggregate FX and the Ukraine conflict impacted our Q2, yet what are your growth rate negatively by eight percentage points.

At a group level four paying users and our people who contributed to our revenue growth with paying users up 3% to just over $3 million and our people increasing 13% to $23 65.

Primarily driven by mix shifts towards bundled.

As we mentioned we are seeing strong gains in download shed a bump up in Q2, and we are very pleased that this is translating to healthy revenue growth as well.

Q2 revenue grew 33% to $170 million above the high end of our guidance range.

Ex headwind, what approximately $5 million, which impacted our year over year growth rate negatively by four percentage points.

Paying users for bundled up totaled $1 9 million up 31% year over year on.

On a sequential basis, we added 149000 paying users marking the third consecutive quarter, we've increased set at <unk>.

A number of factors contributed to this strong growth in paying users, including active user growth and product enhancements that drove payer conversion.

I'm going to ask our people was $29 38 up 2%.

Our people increased 1% sequentially, primarily due to pricing initiatives, partially offset by geographic mix shift as a result of that international expansion efforts and the negative impact from FX.

Now moving on to Baidu App and other.

The new App and other revenue in Q2 was $51 million down 14% year over year.

We saw significant headwinds related to both FX and the Ukraine conflict, which amounted to approximately $10 million, which together impacted growth rates negatively by 16 percentage points.

Excluding the impact of the Baidu App and other revenue would've seen modestly positive year over year growth.

We do have another paying users declined 25% to $1 1 million.

Total paying users decreased 136000 sequentially in Q2 compared to the decrease of 106000 in Q1.

Included 128 doesn't impact from Russia, Ukraine, and Belarus, which was in line with the expectations, we laid out in our prior outlook.

Building these countries, but do and other paying users declined by 8000 users compared to Q1 of this year.

The new App and other our people was $13 60.

Up 6% year over year and flat versus the prior quarter.

Year over year increase in our people was due to pricing optimization work and impact a two tier partially offset by FX headwinds.

As a reminder, we currently include fluids revenue within Baidu App, another revenue, but exclude foods paying users from Baidu app and other paying users while we complete the merger integration.

Turning now to expenses total GAAP operating costs and expenses were $223 million for the quarter up 14% year over year.

On a non-GAAP basis, excluding stock based comp and other noncash and onetime items I would note. The following our total non-GAAP operating expenses were $166 million up 23%.

Cost of revenue was $62 million and grew 23% year over year.

The increase was primarily driven by higher App store fees as revenues have grown.

As a percentage of revenue cost of revenue was 28% compared to 27% in the year ago period, reflecting adoption of Google's labeling in many of our markets starting in Q2.

Sales and marketing expenses grew 22% year over year to $57 million.

Represents 26% of revenue up from 25% in the year ago period.

G&A expenses were $31 million or 14% of revenue compared to $21 million or 11% of revenue last year.

Product development expenses were $15 million or 7% of revenue.

And Q2, GAAP net loss was $6 million compared to a net loss of $11 million in the year ago period.

Q2, adjusted EBITDA was $55 million up 6% year over year and represented a 25% margin.

We generated $22 million of free cash flow this quarter compared to $12 million in the year ago period.

We have a strong cash position and ended Q2 with total cash of $335 million we.

We continue to maintain financial discipline with regards to potential uses of cash.

Now moving on to our financial outlook for the full year and Q3.

For full year 2022, we are revising our total revenue outlook to be between $920 million to $930 million, which represents a growth rate of 21% year over year at the midpoint of the range.

This includes headwinds related to FX and the conflict in Ukraine of approximately $36 million and 20 million respectively.

The current FX environment remains highly volatile and if the current rates continue through the rest of the year. We estimate we will see an additional $8 million FX headwind.

Anticipated during our prior earnings call excluding.

Excluding the impact of FX and the Ukraine conflict audio video revenue growth would be approximately 28% at the midpoint of the range.

So bundle up as Britney noted, we made excellent progress on our product roadmap in Q2 and continue to be very excited about the plans in place for the rest of the year.

Our revenue outlook reflects our latest view and timing of initiatives on our product and marketing roadmap as well as kind of seasonality trend.

We expect a bump of lost revenue growth of 32% to 34% year over year.

This includes $18 million of year over year, FX headwind $7 million higher than at the time of our original guidance and $3 million higher than our prior earnings call.

Excluding FX, we expect the growth rate would be 35% to 37% year over year.

We are maintaining an adjusted EBITDA margin outlook of between 24, 5% to 25% of total revenue. This includes our updated views on FX impact and the previously communicated approximately $16 million of negative impact to our margin as a result of enforcement of Google trade bidding we can.

To compete for talent in the global market, but are maintaining rigorous financial discipline as we strive to meet archiving goal.

We have not yet seen materially adverse effects on our spending due to growing inflation concerns in the broader market.

This is an area we continue to keep a close eye on.

But Q3, we expect total revenue between $236 million and 240 million presenting a growth rate of 19% year over year at the midpoint of the range.

Our outlook assumes $12 million of year over year FX headwind.

Our outlook also assumes $6 million of yen over yen headwinds related to the conflict in Ukraine, primarily in produce.

Excluding the impact of FX, and the Ukraine conflict or guidance for total revenue growth would have been 27% to 29% year over year.

We expect bundle of revenue to be between $184 million and $187 million, representing a growth rate of 29% to 31% year over year supported by continued growth in net paying user addition.

The revenue outlook assumes a negative impact from FX was 6 million.

Excluding FX headwinds our guidance for bumble revenue growth would be 33% to 36% year over year.

We estimate adjusted EBITDA will be between $58 million and $60 million, representing 25% margin at the midpoint of the range. This.

This includes our updated views on FX and the impact of expected changes to aggregator fees on our cost of revenue.

Throughout this ever changing global environment, we remain intensely focused on delivering the best service to our users while delivering sustainable profitable growth for our shareholders.

We intend to realize the opportunity in front of us our quarters and years ahead by prioritizing the execution of our long term growth strategy. We will do so with a sharp focus on operational and financial discipline, we have consistently demonstrated and with that we can open it up for Q&A.

As a reminder to ask a question you will need to press star one one on your telephone once again Thats Star one one please turn violent compile the Q&A roster.

Our first question will come from the line of Cory Carpenter from Jpmorgan. Your line is open.

Hey, Thanks for the question I knew I have two and they might both be for you I was hoping first you could just expand on the drivers of the change in the bundle up 2022 guidance, maybe flesh out how much is FX versus other items what those other items are and then secondly, just your expectations for bumble Avnet ads and <unk> in the second half of the year.

Thank you.

Sure, Hey, Panna, Hey, Corey I can I can take that so.

Let me start with bumble I plenty of guidance, but so.

Computer remember when we gave our original guidance back in March we had said we would be at about 34% to 36% growth rate, obviously, we've seen a.

Significant passionate on.

The pound and the Euro since then we've seen approximately $7 million of impact to our topline as a result of this which is about one 5% to that growth rate that you're talking about but if at the midpoint of the device changes most of the production is really as a result of the FX.

Additionally, as a as we've been working on the second half roadmap, we've been thinking about the timing of when some of these features the launch and based on a lot of the testing and user feedback that we've done we've moved some things around from between should be in Q4. So to give you. An example, we've talked a lot about college bundles and we would originally hoping to launch colleagues bundles before.

We're back on campus, but again based on the feedback that we've received from the users. We believe that they will be better served to to start getting these bundles months they've settled down on campus. So again, we just you know moving some things on the roadmap just again based on on what makes sense for the user. This is very normal course and par for what we do.

Based on the test iterate and expand approach that we take to our overall product roadmap. So that's largely what you see reflected in the in the new guidance range that you see for full year and I want to reiterate what would sit on the.

In the earlier remarks, we continue to be very pleased with the top of the funnel, but also on the download trends we've been seeing in the business. So far. So you know again all of those are trending very much in the right direction and we just want to make sure that we get the user experience right for our bumble app users and the the full year guidance, obviously translates into the split between Q3 and.

Q4 based on again, the timing of the things that we that we are expecting on our roadmap. If we had we talked about.

And in terms of net adds.

You if you remember what I said back in March the overall philosophy of where do we expect to earn for the for the end of the yen has hasnt changed at all so for the second half I still expect it to end up in the same place in terms of overall net adds again I think we may see a little bit of fun again.

Again puts and takes between Q3 and Q4. So you may see a slightly lower number for Q3 than maybe we had originally planned and you'll see that.

Number move into Q4, but again, if you look at the year in aggregate I'm not expecting any major changes as it evolves.

Very helpful. Thank you.

Yeah.

Thank you.

One more for next question.

Yeah.

Our next question comes from the line of Alexander Staiger from Goldman Sachs. Your line is open.

Thanks for taking my question.

Could you maybe give us a few more details on how bump multiyear growth has been trending in the different international markets any positive or negative surprises that you can share as you're expanding your footprint and then wanted to briefly touch on virtual goods. How do you think about the monetization potential effect virtual goods in the.

Long term and how do you feel about the current state of the offering.

And also if we're still on track to launch later this year. Thank you so much.

Hey, this is Todd thanks for the question Alexandra So.

Maybe take those in turn.

International.

Our markets, we are seeing very robust user growth as Wendy mentioned, that's true in Western Europe , It's true in the markets in Latin America and in Southeast Asia. So we generally are seeing.

Very very strong reception to the brand proposition to the product to our marketing efforts and all of those markets and I would say that if you look at most of those major markets that we have launched and we are seeing revenue growth outpaced user growth.

There is a phase of these markets, where we focus primarily on user growth to get the market to a certain scale and then after that we let users and revenue.

With each other and the reception.

Monetization features I would say is quite high really in the international markets that we've been prioritizing. So I wouldn't say, there's any warning signs are places that we consider to be stumbles.

You've talked about Germany, and western Europe , as being particularly bright spot that is continuing in Q2 and as Rodney mentioned in Q3, where the momentum in Germany continues to be very strong and then Latin America, and India and Southeast Asia also.

We are very positive.

Im virtual goods.

We mentioned in the last call that we're very pleased with the test that we're doing we're continuing to do the test as the offerings are continuing to resonate with Gen Z users that we're testing with and in particular.

They are not just engaging with the product, but they are kind of finding that it's leading to an enhanced engagement more fun.

<unk>, which is really one of the goals is both a monetization feature an engagement feature for us as we think about this moving forward. We are I would say likely this is all subject to change as we look at our product roadmap, but likely.

Going to be prioritizing virtual goods within the context of the college offerings that we talked about at least we see there being a high appetite for it there. So some of the bundles will have.

As the school year progresses in particular will have.

Industrial goods components to them still working out the exact details, but I think we're still on track for Q4 seeing those appear at a broader scale within these colored windows.

Great. Thank you.

Thank you.

Thank you one more in for next question.

Our next question comes from line of Andrew <unk> from Raymond James Your line is open.

Hi, Thanks for taking my question.

Mentioned that but do customers are a bit more macro sensitive which has been brought up in the past, but if that's the case are there learnings that you can take from that union user contingent that could help maybe employ bumble app similar macro headwinds.

If they get worse and some of the bumble our core markets.

Okay. Thanks for the question Andrew.

We have I think consistently said.

But do user is more economically.

Disadvantage more economically sensitive tends to be sort of middle class in emerging middle class segment.

And as Andy mentioned, we're starting to see some green shoots there sequentially month over month, where where we think that we are that.

Some of the initiatives that we do have around our product streamlining our products some of the marketing activities that we're doing are really.

Thank you say starting to result in some green shoots there.

Customer base is quite different than the bundled customer and so while we.

Operator shared platform, we take learnings back and forth I'm not sure that there's a tremendous amount of.

Learning specifically around.

Economic headwinds, but do that we would apply to bundle.

If I take an example of how different these customer bases are if we look at travel behavior. During the summer. We have found that the baidu user is generally less likely to have traveled this summer than last summer I think reflecting some of the macro headwinds we are seeing a substantial increase in the number but a bundle users in the U S who are spending.

Days weeks in Europe . This summer and so we think that speaks to them higher affluence of the bundle user base and much lower economic sensitivity that they that they have.

Great. Thank you.

Thank you.

One more for me.

The next question.

Our next question comes from the line of Schrader Progeria from Evercore ISI. Your line is open.

Okay. Thank you for taking my questions first one is on compliment possible could please get a <unk>.

On where you are in terms of testing and scaling in and just to.

Repeat what you said earlier in your prepared remarks, there's a little bit more color on on the back half how you're thinking about the timeline for that for scaling and then.

How you're thinking about monetizing that product as well I guess, that's the first question and then the second question is if any that they that they have.

Great. Thank you.

Thank you.

One more for next question.

Our next question comes from the line of Schrader, Nigeria from Evercore ISI. Your line is open.

Okay. Thank you for taking my questions first one is on compliment possible could please get a <unk>.

On where you are in terms of testing and scaling in and just to.

Repeat what you said earlier in your prepared remarks, there's a little bit more color on on the back half how you're thinking about the timeline for that for scaling and then mark.

How youre thinking about monetizing that product as well I guess, that's the first question and then the second question is really around when we think about beyond product launches just the macro environment could you. Please go over how you were thinking about macro headwinds in deal wins in.

In the back half or maybe in the next call it quarter to three quarters as we look look ahead. Thank you.

Thanks Ross.

So maybe I'll take compliments, and then wait and I will tag team on the macro piece.

So what we.

I mentioned in the call was in the prepared remarks was that we have been live with complement in Australia. We then followed that with with in Germany, and we recently introduced early this month.

Maybe the last day of July the early this month launched in select markets in the U S. The reception that we are seeing is exactly what we want to see we are seeing an increase in.

Activity related to complement complements are getting sent.

Yes.

Message before matches are getting.

Theyre getting opened we are finding that they are leading to higher levels of engagement generally so we're very pleased to see those results part of the <unk>.

Trick with all of this is making sure that the lessons you learned in.

A country like Australia, or Germany is replicated in a country like the U S. So we again are pretty cautious when we are launching products.

We hope so far we're seeing similar results. So we're hoping that that continues and that will lead to broader market rollout I think.

Globally, if we do see that so stay tuned for more on that on the monetization front, we launched our first half on the monetization side early this.

Only this week actually and essentially at the moment you can think of it as you get a certain number of compliments for free that you can send per day and then you would have to pay for additional complements right. It's really a sort of center type of experience.

That would be a consumable offering at the moment, we're looking at different configurations of that if the test proved to be successful it could be consumables and subscriptions in different ways. So more to come as we learn what's happening here, but we think the level of engagement, we're seeing points to a very monetize the whole opportunity overtime.

Where do you want to take some of the macro for Raj. Thanks for the question so as far as the outlook on the macro environment goes I think it's important to note that we're very fortunate to be in a business really centered around this core human needs and finding human connection ultimately so people want that connection no matter what.

It's happening with the economy and remember our apps are such a great value compared to many other ways of meeting our monthly subscription is quite literally cheaper than drinks and a nice bar in New York City on just one day. So the access you can get through our product is it.

Almost unparalleled so for bumble App, we are not noticing any impact on the business. So far as it pertains to these macro moving trends we tend to have a more affluent customer base block by block and the behaviors. We have seen to <unk> point earlier suggest that they are continuing as they always have so.

Borrowed hardest example earlier, we've seen U S bundle customers traveling to Europe much more this summer than they did last time last year.

And of course, I want to be clear that on but do we do have a more economically disadvantaged customer base to have struggled throughout the pandemic. So we're seeing some of those struggles continue with that audience. Their travel are slightly down as part of that but as we mentioned we are starting to see some green shoots in that business as well.

As our new initiatives start to take hold so well continue to of course watch this very closely as it continues to be a very evolving situation, but we are we are positive as it stands.

Okay. Thank you Whitney Thanks Tarik.

Thanks.

One more for our next question.

Our next question comes from the line of Lauren shrink from Morgan Stanley . Your line is open.

Great. Thanks, just a few quick ones I guess, you mentioned the bumble up in net adds in the third quarter might be slightly below where you were expecting before you're still expecting sequential acceleration in net adds in the third quarter.

And then second how confident.

Or how do you gain confidence in their being foundation in the fourth quarter on the tougher comparison and then lastly, any update on your conversations with Google on up potential Spotify Lite yep. Thanks, so much.

Yes, sure. So just to be clear for Q3, I am still expecting net adds to be to be higher than what we had in Q2 of this quarter right. Obviously, we had originally said that we may potentially have a hockey stick just given that some of our lower priced bundles, we're going to launch in the earlier part of Q3. So now.

With that potentially shifting to the later part of Q3.

We that hockey stick, maybe less of a hockey stick than we thought but again just to be clear it will be more than what we saw in Q2 in terms of in terms of Q4.

And I remember you know we are very methodical about how we test on <unk>.

And if you remember even last year. We saw we had very specific product launches that we had coming up in Q4 and Thats, what we launched and we delivered on those so again, we feel based on extensive testing that we've done that.

The stuff that we have in the pipeline for Q4 is all stuff that we feel.

Very concerned about on Rovs would start launching in the latter part of Q3, and then we will start to ramp up in Q4 and again like we've said also this year. We are taking a very sort of 360 degree approach to how we are planning to launch a product, it's not just us launching a product and letting it out in the wild it's going to be accompanied by a very robust marketing program that will.

To accompany the product launch so.

Especially this year found that that'd be 60 degree approach to a product launch really works well for us and resonates with our users. So we are feeling really really good about the stuff. That's on our roadmap and there are some really cool and fun and exciting things that are happening so.

I think the teams are working very hard and feeling very good and again.

And just overall the strength that youre seeing from a.

Top of the final perspective that makes us pretty confident that we will.

Achieved the numbers that we've set out for payers for the second half of the year.

And then with respect to Google again.

I'm sure all of you have been following the news as closely as we have I think the latest news.

Is the announcement that Google has made in the European economic area down.

Allowing third party providers. So that is definitely a change that is sort of new on the horizon. We are talking to Google about how that gets implemented that isn't a pool of process that you have to go through.

So that is something that is likely going to come down the pipe.

And just for everyone's benefit that is.

Largely going to still involve us paying 12% to Google and then the balance to a third party payment provider. So from a margin perspective, we don't expect to see.

Any saving with respect to that word.

That is beneficial as obviously this makes the.

The user flow flawed.

What are what our user.

<unk> put a much better experience for them. So obviously, we're taking a close look at that and then around the largest user choice billing program. We are in active conversations with Google and <unk>.

And as we've always said we have a good relationship with them. So.

And when we can.

Have something to say, obviously, we'll share it with them.

Thank you.

One more for next question.

Our next question comes from the line of Brad Erickson from RBC capital markets. Your line is open.

Alright. Thanks.

So I think you know when you rolled out when you expanded the plans from one to two.

Said, you thought two thirds adoption with a higher price point and maybe just talk about your expectations for how.

That mix will look with a new lower priced bundles and I guess, how much of the payer inflection you're pointing to Q4 is expected to come from existing free users.

Attracting new users with more attractive pricing.

Yes so.

As you know.

It's likely to be a mix of both I think we had always very very conscious about making sure that when we launch new pricing programs that we don't cannibalize existing payers in any way. So the way we are designing the college bundle is going to be again targeted towards students that are not paying for any of our paid program.

So these will be.

The bundled boost your bundled premium tier, but they will start to see value in our new colleagues bundle that we put together. So it is a it is a it is a mixed approach we had always.

Making sure that we continue to drive penetration up but at the same time. We are also very focused on getting new users into the fourth as part of this process as well.

Got it and then.

It sounds like Youre rolling up the coast plain, obviously later in the year than you'd previously anticipated.

Not really changing much for your revenue guidance is it fair to assume that there really wasn't that much.

Okay.

It contemplated in the original guidance around that plan and I guess, how should we think about that ramping over that.

You're particularly maybe any color on.

G O.

The U S.

Yeah, I mean, you're right. So from an overall what do we have plan for the year I think other than the fact that we are moving some things between Q3 and Q4 really there isn't any other change in terms of how we're thinking about the full year guidance.

Obviously that means that it pushes some revenue from from this year into the early part of next year, but again from a.

What we want to do and from an overall growth perspective, there's really no big change in the story other than that obviously FX continues to go down and so we've just incorporated that in our guidance.

For this year a target I know if you want to talk about our international plan for.

How we're thinking about the first half.

Yes, I think if the question's around international growth I think we are going to be.

Really taking a methodical regional approach so we've talked about the countries that we're in.

The moment that we are excited about the moment countries like Germany like France Benelux.

Mexico.

Chile, Brazil et cetera.

What youre going to see us really focusing on next year, both depth within those markets as well as expanding kind of methodically into new markets. We are very focused.

Getting the first marketing campaign going in Germany was not the end of the story for US. It was really a lot of work on the ground to continue to build momentum and depth and get us to the place that we're at today, we still think theres a tremendous opportunity in the countries I just mentioned that we've launched and so a lot of focus on that we will be adding.

Countries wouldn't you mentioned.

A number of them for the second half of the year and I think that the one we're taking a close look at at the moment as you mentioned is north Asia or some some time in 2023, there are some challenges on the ground at the moment as it relates to Covid et cetera. So we're just trying to pick our times.

We're fully there.

One of the advantages about the segment specific bundle capability that we're building and launching in college is one example of that is it gives us the opportunity to do more local market bundles over time as well so we know that in some markets.

Like say, India and may be better to do a local.

A locally tailored bundle rate than what we have available globally. So that is something we'll be taking a harder look at it in 2023 as well.

One moment for our next question.

Our next question comes from the line of Deepak <unk> from Wolfe Research. Your line is open.

Great. Thanks for taking the questions. So a couple of ones first.

Further noted that the inclination from first time users to use dating products hasn't really return to pre pandemic levels, yet not sure if you're seeing similar trends on top of the funnel any thoughts or views you can provide on that would be very helpful. And then second can you talk a little bit more about the marketing spend.

Even a little bit below us and I believe you are hoping to ramp the spend our head of summer is that due to maybe better rois youre seeing on advertising channels or is that due to.

The delay in the I'll call. It subscription launch any color you can add there would be great.

Sure Hey, Deepak so.

On first time users ill focus my answer on the U S as a sort of.

A very mature market for us we are actually seeing for the first time since the pandemic started we are seeing early signs that the.

User base is.

Really coming back more actively more like it was in pre pandemic times I think that we are.

Very happy with the results of the marketing programs that we have rolled out in North America. This combination as we've talked about before of bumble IRL really leaning into that hybrid experience online plus offline leaning into our success stories to generate word of mouth and really big.

Build that organic demand so initiatives like that and we are seeing that that new user is.

As we think more spring in our step than it has historically, we engaged users and existing users are continue to also performed strongly so it's not that we're training up one for the other it very much is kind of a new ad.

That we think is both a macro point as the pandemic becomes endemic but also a result of these very deliberate actions, we've taken on the marketing and product side to two.

To tailor ourselves for the post pandemic world right, where people do want to go out and meet people in real life. So very pleased with that it's still pretty early days, but it was.

Very nice thing to see this quarter.

In terms of marketing spend.

Yes, there is a couple of things going on there we are.

Very disciplined ROI oriented marketers and so we are.

Getting good Rois, we are taking advantage of those wherever we.

Wherever we find those opportunities and I think that we are you'll see us leaning in certain markets and then leaning back into other markets depending on how the ROI trends are shaping up we are finding that theres a lot of really good opportunities in some of the social platforms.

IOS as an example at the moment and less so at this particular moment on Android.

That's been a trend that's been happening for a little while now so so we are shifting our mix always keeping that return on AD spend target in mind.

A part of how we spend our marketing dollars to support new product launches and so with some of the.

Timeline shifts a couple of weeks here and there that.

<unk> talked about we have moved around some of the marketing dollars to make sure we're fully supporting the marketing the product activity as a product roadmap activities that we have so that will be the other thing on the margin that youre seeing.

Got it thanks, so much.

Thank you.

One more for next question.

Our next question comes from the line of Benjamin Black from Deutsche Bank. Your line is open.

Great. Good afternoon. Thank you for the question.

Your competitors, obviously launching them.

Geared towards monetizing woman.

Question here do you get the sense that competition is rising in the space and how do you feel positioned competitively and then secondly, with the launches students subscription tier complements what's a good how should we be thinking about bumble.

Our people growth for the balance of the year and into next thank you very much.

Thank you so much for the question I'll start with the competition piece I'll break it down in two parts I'll start just with the broader view on competition more generally and then we will take the women piece second.

Then I'll turn it over to a new on the last question. So first and foremost we're very happy with our performance versus our competition. This quarter based on third party data sources, we believe that we gained download share against our major competitors and almost all of our major markets. So as I mentioned in the prepared remarks this momentum.

MS continuing into July and the same data sources are showing that bubble is the number one most downloaded dating app and a number of our major major markets, including Germany. We believe that there is a number of reasons for that so first of all.

Our brand promise and this comes to the woman piece, which will get to in a second but our brand promise to women continues to resonate. So according to morning console we've substantially.

Gained in our net promoter scores with in the U S women more so than our competitors and second our product continues to see high and increasing engagement. This really reflects the success of our product and our marketing roadmaps, including our increasing focus on hybrid that offline and online approach to dating.

And then lastly, we know that people are really successful on bumble, we have a platform there.

We have called it started on bumble and this really celebrates that so for example, we're seeing increasing integration of our brand into wedding, we receive a lot of wedding and bias engagement announcements and baby announcements at our office. This generates that word of mouth, which then in turn drives organic growth. So all of these have worked together.

Gather to create what we believe is this unique ecosystem that all to say, we are really gaining market share in organic way and this is sustainable over the long term.

It's really resonates on a global level, so let's move to the women's piece.

We are first and foremost very grateful to see the larger internet space, taking an interest in making the internet safer for women. We of course support that that said the safety of women on these platforms cannot just be a roadmap add on or an afterthought. So since starting the company in 2014, our consistent goal.

Has been to make dating that our kinder and safer for women and this is truly at the foundation of everything we've done. Therefore, we've earned our stripes by being known as this woman first brand that is not something that can be replicated easily.

And we don't believe it can be replicated at all.

This is really why we have such a strong audience amongst women in a hyper penalty to pay and an industry, leading NPS score with women.

That all to say and to conclude to turn it over to a new we have not seen.

A large impact to date from competitors add ons for women and we believe that it is really what I am just attributed about too is that it's just not fundamentally focused in there.

Sure.

So over to you on the revenue quickly on our people again as I've said before we largely expect this will be flat year over year on our people.

Obviously FX will play a part in it and then again some of the lower priced offerings that we have will also play a part of it. So again nothing has really changed fundamentally from what we said before.

On a full year basis, I expect number will be.

Around the flat or people range that I had provided before.

Great. Thank you thanks for all the color.

Yes.

One more for next question.

Yes.

Our next question comes from the line of John Blackledge from Cowen Your line is open.

Great. Thanks, I'm just curious if you could provide an update on the French acquisition and more broadly if you could discuss kind of how you're thinking about potential M&A opportunities.

Sure.

I'll start with M&A, and then I'll give you a quick update on fruit so.

It's important to note that we remain really excited by our organic growth and the potential there, but as we showed with our first acquisition quick update to come there in a moment, we are very open to M&A when it fits with our mission our strategy and our share technology and marketing platforms. So I would say, there's five key bullet points to keep in mind.

When we.

For you to keep in mind as we think about M&A. So number one is mission alignment can this drive kind of connections to does it introduced a new engagement model is something that we don't already offer at scale three does it capture a new geography or a hard to reach user group for does it add to it.

Slash talent.

Both while being financially accretive and five does it capture adjacencies close to our core dating and connections business, which would just extend tammen L. T V. So where we see attractive opportunities. We are open to actively exploring those.

Those and we will be opportunistic we have a strong balance sheet and a really strong.

Residents with founders, we believe that founders are really intrigued by by what we do by our mission alignment and and our shared infrastructure to help them scale and find monetization and so on and so forth. So we definitely have capacity to do more.

And as always we'll of course be extremely disciplined in our approach to that so let's just turn to fruits really quickly. So Q2 marked our first full quarter with fruits since we acquired the App in January and we have successfully and smoothly integrated it with our group.

First is already leveraging the expertise of Bumble, Inc. So focusing on foundational elements of its business like safety and content moderation data science, AI and monetization and so on.

We're excited to see the potential for fruit. It is solid lead the number two most downloaded app in its home country of France.

As of May and it compete actively for the top spot. So its growth continues to be almost all organic at this point and we have good line of sight and how we can unlock more growth opportunities in the future and just in case anyone is unclear on what fruits key differentiator as it's all about intentions and honesty in.

Transparency when you date, so you select a fruit to indicate what your relationship intention is and you can match accordingly, so it's very much aligned.

May I ask a follow up.

Sure certainly you got so would you or any of the today. This concludes today's conference offering too.

Oh, the bumble off or or <unk>.

So it's very interesting and this is part of the shared resource infrastructure that we have we can really evaluate what certain features and functionality as our working in one product versus another and there's always the option to test and iterate on that and to try it in new markets, new audiences and even cross platform. So there is.

Definitely.

<unk> opportunities in the future to two test on other products, but right now we're really exciting we're very excited with what we're saying on that product and we're excited to watch that and B G.

Ernie to scale.

Thank you that is all the time, we have for Q&A. Today. This concludes today's conference call. Thank you for participating you may now disconnect everybody have a great day.

The conference will begin shortly to raise your hand during Q&A you can dial stuff.

[music].

Good day, and thank you for standing by walking through the bumper second quarter 2022 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone please be advised.

Today's conference is being recorded.

I now like to hand, the conference over to your Speaker today, Cheryl Valensuela Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us to discuss bundled second quarter financial results with me today are with a Walker founder and CEO Forex market, President and most of my money and CFO assemble.

Before we begin I'd like to remind everyone that certain statements made on this call. Today are forward looking statements. These forward looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs assumptions and information currently available.

SEC, including our annual report on Form 10-K for the year ended December 31, 2021, and our subsequent periodic filings.

During the call. We also refer to certain non-GAAP financial measure.

non-GAAP measure should be considered in addition to and not as a substitute for or in isolation from our GAAP results reconciliations to the most comparable GAAP measures are available in today's earnings press release, which is available on the Investor Relations section of our website at IR, that's on both iPhone and with that I'll turn it over to Brittany.

Thanks, Cheryl good afternoon, and thank you all for taking the time to join our call today, we delivered strong second quarter results, reflecting the power of our product the relevance of our mission and the enduring human need for love and connections. We built on our momentum from last quarter into Q2, delivering total group revenue.

$220 million driven by strong growth in Bumble App revenue.

Total paying users across bumble in Baidu app reached over $3 million with bumble app, adding over 149000 paying users sequentially, a greater increase than in each of the past two quarter. We also reported adjusted EBITDA of 55 billion and nearly double free cash flow from last year, a strong bought.

Mine results, reflecting both revenue growth and continued financial discipline Bumble App continue to power, our overall growth with revenue up 33% year over year to $170 million, primarily driven by 31% increase in paying users.

Before we dive deeper I wanted to provide some more context around the resilience we have seen so far within bundle up I founded bumblebee make relationship better safer and more equal for women that remains our north star and this is important now as at any time in our history because of the unprecedented challenges.

Women are facing we are grateful to be in a consumer business that helps people with one of their most fundamental needs. Some kind of meaningful connections that exist, whether you are in a pandemic or in a high inflation in recessionary environments. We believe bubble App unique brand and trust with our user, especially when combined.

And with our leadership and product innovation is what's driving our success in the face of overlapping macro challenges. Our app provides tremendous value when you compare the cost of a monthly subscriptions with the cost of a typical first date, especially once you factor in the convenience selection discovery fund and safety features that we have.

<unk>.

Products continue to resonate in both our core markets and internationally in the U S and Canada, we are seeing existing users engage retain and re engage at a high rate. Importantly, we are also seeing early signs, but new users are coming into the fold now that COVID-19 has become more endemic our marketing programs.

Including Bumble IRL, our expanded college program and our it started on bundle success story platform are resonating with users and helping us to increase brand awareness and user engagement.

Outside of the U S and Canada, we are very pleased with our continued download share gains as well as a reminder, our international market expansion like our U S growth is built on the back of our brands and its powered on the foundation of organic user demand. We amplify this demand through our decade long experience in product localization are best in class field.

Marketing programs and through Influencer in performance marketing.

This approach ensures that we build sustainable growth in market depth, not just toehold each market.

Let's talk about that by region.

In Western Europe , our market expansion efforts continued to deliver strong results.

This results and believe it continues to demonstrate the power of our model, we expect to focus over the next several quarters on deepening our presence across our launch markets and expanding into other parts of Western Europe .

Looking at Latin America, Mexico continues to perform well and our recent launches in Brazil, and Chile have established a strong initial market presence for US we are continuing to build depth in these markets to drive both user and revenue growth and we'll be extending our efforts to Columbia and Argentina in the second half of this year finally, turning to Asia.

We are particularly excited by the traction we are seeing a lot of activity. This year has been focusing on improving the localization of our products in key markets, including for Japanese Mandarin and Cantonese speakers, while amplifying organic demand in our launch market. India. For example is a market that continues to deliver for us and our.

Localization improvements and brand initiatives are delivering rapid user growth with revenue more than doubling year over year. Similarly, our efforts last year in southeast Asia, including Singapore, Indonesia, The Philippines continued to perform well looking forward. We are particularly excited by the early results of our localization.

First in North Asia, and expect the region to be a focus of our 2023 effort once the situation on the ground allow.

We test our product extensively to make sure they lead to the right outcome for our users. We then expand to the market to learn from our users and really understand how to land the product at scale.

Then rollout other markets at a time.

But.

Responsible pace.

In Q2, we brought our broad portfolio of discovery oriented products to market. We've been testing complements our message performed match offering in Australia, Germany and based on the positive results. We're seeing we expanded the test earlier this month to select markets in the U S.

Been encouraged with early results, which suggest that those who spend complements a better higher quality matches and conversations and some markets. We've also been testing a broader suite of product enhancements such as video and audio that provide our members with richer and more dynamic profile. We are encouraged by the engagement in these new product features and anticipate rolling these.

For other markets in the future to better serve our underrepresented communities on bundle. We also launched substantial product enhancements for LGBTQ IAA plus people and we began investing in features that will deliver a significantly improved experience for underrepresent in ethnic and cultural backgrounds. These product initiatives are important for our mission.

And through our user base, especially Gen Z and will continue to expand our addressable market.

Finally, we are experimenting with new engagement models to better serve our women user can help drive market to that end, we recently launched a new weekly astrology oriented event within Bumble App.

With over 75% of active bundle members in the U S adopting of Zodiac ads on their profile. This is something that our user base is ask for through the year astrology Tuesdays have led to increases in daily active users on those days and are an example of how we're working to expand the frequency of use I'm humble by designing through women's lens, which.

Enriches the experience for all.

We pair these engagement driving future with our highly efficient and innovative monetization program Q2 was focused on a number of paywall and pricing optimization to drive payer conversion and as we look to the second half of this year. We have an exciting set of new monetization features base plan. We are just starting our monetization tests are.

And we continue to be excited with path around virtual goods. Later this year, we will start launching our segment specific offerings, starting with college students in women's user <unk>.

Lastly, I'd like to spend a moment on <unk> as you know we are building out our next generation offerings, which centers on helping people find photonic connections through small communities, which we are calling <unk>.

As we have shared before our approach is built on the insight that people want to find friends acquaintances and connections through shared struggles in com enjoys moving to a new city navigating parenthood, finding a partner for hygiene or really anything else in between we have recently expanded our alpha testing to the whole of the greater Toronto area.

And we are excited about the results we have seen with no external promotions. The FF member of created thousands of high within these new ways to connect we're seeing a deepening of engagement. We have seen the weekly average number of customers for these members increased by two thirds and their weekly time spent in App is up 16% we are listening.

The feedback from our early adopters to continue to make it easier and more joyful to discover relevant HIFU joined <unk> no. Other members in your highs and coordinate events to spend time in person.

Now turning to our other data yet to do and other revenue, including fruit totaled $51 million in Q2 down 14% year over year. It has been a challenging first half for Baidu, we of course exited Russia and Belarus earlier this year.

As they do serve the more economically sensitive user base. It has also felt the effects of COVID-19 and now the macro environment much more than bundle up. Despite these monetization headwind. The deal continues to be the second most downloaded dating app in the world with a very broad geographic footprint and a high proportion of long tenured and high.

Really engaged members, we appointed a new general manager for Baidu, a here too and we are actively working on defining the go forward product strategy and operating model for the business in the immediate future. We are focused on simplifying our user experience to make the product easier to understand with the primary goal of driving higher adoption for our future.

For example, we've been optimizing our consumable offerings, such as chat for credits and extra shows which enabling users to message before a match and increase their overall activity. While it is early days in recent months, we have seen improving revenue trends in many markets and a return to revenue growth on a constant FX basis, and some of our large markets such as.

Poland, and the Netherlands, given reduced brand and scale it as organic traction in many long tail markets, such as southeast Asia, where we have historically spent very little on product on marketing, we're going to take a more active approach to be by testing, both localization and marketing efforts in countries within southeast Asia.

Finally, Q2 marked our first full quarter with fruit proof is aligned with bumble inc's mission by focusing on encouraging transparency and honesty and data.

It, particularly resonates with Gen Z users in Western Europe , and Canada. We are pleased with the progress on integration truth is already leveraging the expertise of bubble, Inc. In areas, such as safety and moderation and strengthening its monetization platform.

It continues to be fuelled almost entirely by organic demand and has established itself in a close competition for the most downloaded dating app in France.

In closing our business has been resilient and I am proud of the execution and results. Our team has delivered it really is an extraordinary time, we are grateful for the opportunity to earn the support and trust of our users partners and.

And investor by focusing on our mission and customer through operational excellence and financial discipline.

Now I will turn it over to <unk> to talk about the financials.

Thank you Whitney and good afternoon, everyone. We delivered another strong set of results in Q2 with total revenue approaching the top end of our guidance and adjusted EBITDA exceeding our guidance.

Again with the discussion of our second quarter trends and results before turning to our outlook for Q3 and the full year.

Understated otherwise the comparisons I will make the second quarter of 2022 versus the second quarter of 2021.

Total bundle ink revenue in Q2 was $220 million up 18% driven by strength in Bumble App.

FX was a $9 million headwind to our top line this quarter with the continued strength of the U S dollar relative to the euro and British pound we.

We saw an additional $5 million of negative impact from our decision to discontinue operations in Russia, and Venezuela, primarily impacting Baidu app.

In aggregate FX and the Ukraine conflict impacted our Q2, yet a linear growth rate negatively by eight percentage points.

At a group level four paying users and <unk> contributor to our revenue growth with paying users up 3% to just over $3 million and our people increasing 13% to $23 65.

Primarily driven by mix shifts towards bundle.

As Vicki mentioned, we have seen strong gains and download chatted bumble App in Q2, and we are very pleased that this is translating to healthy revenue growth as well.

Q2 revenue grew 33% to $170 million above the high end of our guidance range.

Headwinds, what approximately $5 million, which impacted our year over year growth rate negatively by four percentage points.

Paying users for Bumble App totaled $1 9 million up 31% year over year on.

On a sequential basis, we added 149000 paying users marking the third consecutive quarter, we've increased set at <unk>.

A number of factors contributed to this strong growth in paying users, including active user growth and product enhancements that drove payer conversion.

I'm going to ask our people was $29 38 up 2%.

<unk> increased 1% sequentially, primarily due to pricing initiatives, partially offset by geographic mix shift as a result of that international expansion efforts and the negative impact from FX.

Now moving on to Baidu App and other.

The new App and other revenue in Q2 was $51 million down 14% year over year.

We saw significant headwinds related to both FX and the Ukraine conflict, which amounted to approximately $10 million, which together impacted growth rates negatively by 16 percentage points.

Excluding the impact of the Baidu App and other revenue would have seen modestly positive year over year growth.

We do have another paying users declined 25% to $1 1 million.

Our total paying users decreased 136000 sequentially in Q2 compared to the decrease of 106000 in Q1.

This included 128 doesn't impact from Russia, Ukraine, and Belarus, which was in line with the expectations, we laid out an upside outlook.

Excluding these countries will do and other paying users declined by 8000 users compared to Q1 this year.

The new App and other our people was $13 60 up 6% year over year and flat versus the prior quarter. The euro linear increase in our people was due to pricing optimization work and impact a two tier partially offset by FX headwinds.

As a reminder, we currently include fluids revenue within Baidu App, another revenue, but exclude through paying users from Baidu app and other paying users while we complete the merger integration.

Turning now to expenses total GAAP operating costs and expenses were $223 million for the quarter up 14% year over year.

On a non-GAAP basis, excluding stock based comp and other noncash and onetime items I would note. The following our total non-GAAP operating expenses were $166 million up 23%.

Cost of revenue was $62 million and grew 23% year over year.

The increase was primarily driven by higher App store fees as revenues have grown.

As a percentage of revenue cost of revenue was 28% compared to 27% in the year ago period, reflecting adoption of Google modeling and many of our markets starting in Q2.

Sales and marketing expenses grew 22% year over year to 57 million. This represents 26% of revenue up from 25% in the year ago period.

G&A expenses were $31 million or 14% of revenue compared to $21 million or 11% of revenue last year.

Product development expenses were $15 million or 7% of revenue.

Q2, GAAP net loss was $6 million compared to a net loss of $11 million in the year ago period.

Q2, adjusted EBITDA was $55 million up 6% year over year and represented a 25% margin.

We generated $22 million of free cash flow this quarter compared to $12 million in the year ago period.

We have a strong cash position and ended Q2 with total cash of $335 million we.

We continue to maintain financial discipline with regards to potential uses of cash.

Now moving on to our financial outlook for the full year and Q3.

For full year 2022, we are revising our total revenue outlook to be between 920 million to $930 million, which.

The growth rate of 21% year over year at the midpoint of the range.

This includes headwinds related to FX and the conflict in Ukraine of approximately $36 million and 20 million respectively.

The current FX environment remains highly volatile and if the current rates continue through the rest of the year. We estimate we will see an additional $8 million of FX headwind not anticipated during our prior earnings call.

The impact of FX and the Ukraine conflict audio video revenue growth would be approximately 28% at the midpoint of the range.

Mobile App with me noted we made excellent progress on our product roadmap in Q2 and continue to be very excited about the plans in place for the rest of the year.

Our revenue outlook reflects our latest view and timing of initiatives on our product and marketing roadmap as well as current seasonality trends.

We expect <unk> revenue growth of 32% to 34% year over year.

This includes $18 million of year over year, FX headwind 7 million higher than at the time of our original guidance and $3 million higher than our prior earnings call.

Excluding FX, we expect the growth rate would be 35% to 37% year over year.

We are maintaining an adjusted EBITDA margin outlook of between 24, 5% to 25% of total revenue.

This includes our updated views on FX impact and the previously communicated approximately $16 million of negative impact to our margin as a result of enforcement of Google trade venting.

We continue to compete for talent in the global market, but are maintaining to maintain our financial discipline as we strive to meet archiving goal.

We have not yet seen materially adverse effects on our spending due to growing inflation concerns in the broader market. This is an area. We continue to keep a close eye on.

For Q3, we expect total revenue between $236 million and $240 million, representing a growth rate of 19% year over year at the midpoint of the range.

Our outlook assumes $12 million of year over year FX headwind.

Our outlook also assumes $6 million of the <unk> headwinds related to the conflicts in Ukraine, primarily in Brazil.

Excluding the impact of FX, and the Ukraine conflict or guidance for total revenue growth would have been 27% to 29% year over year.

We expect <unk> revenue to be between $184 million and $187 million, representing a growth rate of 29% to 31% year over year supported by continued growth in net paying user in addition.

The revenue outlook assumes a negative impact from FX was $6 million.

Excluding FX headwinds our guidance for bumble revenue growth would be 33% to 36% year over year.

We estimate adjusted EBITDA will be between $58 million and $60 million, representing 25% margin at the midpoint of the range. This.

This includes our updated views on FX and the impact of expected changes to aggregator fees on our cost of revenue.

Throughout this ever changing global environment, we remain intensely focused on delivering the best service to our users while delivering sustainable profitable growth for our shareholders, we intend to realize the opportunity in front of us.

Orders in years ahead.

Robert I think the execution of our long term growth strategy.

We'll do so with a sharp focus on operational and financial discipline, we have consistently demonstrated and with that we can open it up for Q&A.

As a reminder to ask a question you will need to press star one one on your telephone once again Thats star one one <unk> bio and compile the Q&A roster.

Our first question will come from the line of Cory Carpenter from JP Morgan Your line is open.

Hey, Thanks for the question a new I have two and they might both be for you I was hoping first you could just expand on the drivers of the change in the bundle up 2022 guidance, maybe flesh out how much is FX versus other items and what those other items are and then secondly, just your expectations for bundle out net adds and <unk> in the second half.

For the year. Thank you.

Sure.

I can I can take that so.

Let me start with bumble out full year guidance, but so.

Peter remember when we gave our original guidance back in March we had said we would be at about 34% to 36% growth rate, obviously, we've seen a.

Significant passionate on.

The pound and the Euro since then so we've seen approximately $7 million.

Of impact to our top line as a result of this which is about one 5% to that growth rate that we're talking about.

At the midpoint of the device changes most of the deduction is really as a result of the FX.

Additionally, as a as we've been working on the second half roadmap, we've been thinking about the timing of when some of these features the launch and based on a lot of the testing and user feedback that we've done we've moved some things around from between should be in Q4, but to give you. An example, we've talked a lot about college bundles and we would originally hoping to launch call it bundles before Steve.

We're back on campus, but again based on the feedback that we've received from the users. We believe that they will be better served to to start getting these bundles once they've settled down on campus. So again, we just moving some things on the roadmap just again based on on what makes sense for the user. This is very normal course and par for what we do.

The earlier remarks that we continue to be very pleased with the top of the funnel growth and the download trends that we've been seeing in the business. So far so again all of those are trending very much in the right direction and we just want to make sure that we get the user experience right for our bumble App users and the full year guidance, obviously translates into the split between Q3 and <unk>.

Fourth based on again, the timing of the things that we that we are expecting on a roadmap that we talked about.

And in terms of net adds.

If you if you remember what I said back in March the overall philosophy of where do we expect to earn for the for the end of the year has hasnt changed at all so for the second half I still expect it to end up in the same place in terms of overall net adds again I think we may see a little bit.

Again puts and takes between Q3 and Q4. So you may see a slightly lower number for Q3 than maybe we had originally planned and youll see that number move into Q4, but again, if you look at the year in aggregate I'm not expecting any major changes as a result of it.

Very helpful. Thank you.

Thank you.

One more for our next question.

Yes.

Our next question comes from the line of Alexander's figure from Goldman Sachs. Your line is open.

Thanks for taking my question.

Could you maybe give us a few more details on how bumble peer growth has been trending in the different international markets any positive or negative surprises that you can share as you're expanding your geo footprint and then wanted to briefly touch on virtual goods. How do you think about the monetization potential for like virtual goods in the.

Long term and how do you feel about the current state of the offering.

And also if we're still on track to launch later this year. Thank you so much.

Hey, this is Todd thanks for the question Alexandra So.

Maybe take those in turn.

International.

Markets, we are seeing very robust user growth as Wendy mentioned, that's true in Western Europe , It's true in the markets in Latin America and in Southeast Asia. So we generally are seeing.

There is a phase of these markets, where we focus primarily on user growth to get the market to a certain scale and then after that we let users and revenue kind of grow.

With each other and the reception.

You've talked about Germany, Western Europe , as being particularly bright spot that is continuing in Q2 and then when you mentioned in Q3, where the momentum in Germany continues to be very strong and then Latin America, and India and Southeast Asia also.

We are very positive.

On virtual goods.

They are not just engaging with the product, but they are kind of finding that it's leading to an enhanced engagement more fun in the.

<unk>, which is really one of the goals. It's both a monetization feature and an engagement feature for us as we think about this moving forward. We are I would say likely this is all subject to change as we look at our product roadmap, but likely.

Going to be prioritizing virtual goods within the context of the college offerings that we talked about at least we see there being a high appetite for it there. So some of the bundles will have.

As the school year progresses in particular will have.

Industrial goods components to them still working out the exact details, but I think we're still on track for Q4 seeing those appear at a broader scale within these colored windows.

Great. Thank you.

Thank you.

Thank you one more in for our next question.

Our next question comes from the line of Andrew <unk> from Raymond James Your line is open.

Hi, Thanks for taking my question.

Mentioned that could do customers are a bit more macro sensitive which has been brought up in the past, but if thats. The case are there learnings that you can take from that union user contingent that could help maybe insulate bumble app from similar macro headwinds.

They get worse and some of the bump of lab core markets.

Hey, Thanks for the question Andrew.

We have I think consistently said.

But do user is more economically.

Disadvantage more economically sensitive tends to be sort of middle class in emerging middle class segment.

And as Andy mentioned, we're starting to see some green shoots there sequentially month over month, where where we think that we are that some.

Some of the initiatives that we do have around our products streamlining our products some of the marketing activities that we're doing are really.

Thank you so you're starting to result in some green shoots there.

Customer base is quite different than the bundled customer and so while we.

Operator shared platform, we take learnings back and forth I'm not sure that there is a tremendous amount of.

Learning specifically around.

Economic headwinds, but do that we would apply to bundle if I take an example of how different these customer bases are if we look at travel behavior. During the summer. We have found that the baidu user is generally less likely to have traveled this summer than last summer I think reflecting some of the macro headwinds we are seeing a substantial increase in the.

The number but a bumble users in the U S who are spending days weeks in Europe . This summer and so we think that speaks to them higher affluence of the bundle user base and much lower economic sensitivity that they that they have.

Great. Thank you.

Thank you.

One more for me.

Our next question.

Our next question comes from the line of Schrader, Nigeria from Evercore ISI. Your line is open.

Okay. Thank you for taking my questions first one is on compliment possible could please get a.

Sense on where you are in terms of testing and scaling in and just to.

Repeat what you said earlier in your prepared remarks, there's a little bit more color on the back half how you're thinking about the timeline for that for scaling and then mark.

How you're thinking about monetizing that product as well I guess, that's the first question and then the second question is activity that they that they have.

Great. Thank you.

Thank you.

Our next question.

Our next question comes from the line of Schrader, Algeria from Evercore ISI. Your line is open.

Okay. Thank you for taking my questions first one is on complement possible. Please get a.

On where you are in terms of testing and scaling in and just to.

Repeat what you said earlier in your prepared remarks, there's a little bit more color on on the back half how you're thinking about the timeline for that for scaling and then.

In the back half or maybe in the next call it quarter to three quarters as we look look ahead. Thank you.

Thanks Ross.

Maybe I'll take compliments and then Whitney I will tag team on the macro piece.

So what we.

I mentioned in the call.

In the prepared remarks was that we have been live with complement in Australia. We then followed that with with in Germany, and we recently I think it was.

Early this month.

Maybe the last day of July there early this month launched in select markets in the U S. The reception that we are seeing is exactly what we want to see we are seeing an increase in activity related to complement complements are getting sent.

So the message before matches are getting they're getting opened we are finding that they are leading to higher levels of engagement generally so we're very pleased to see those results part of the.

Trick with all of this is making sure that the lessons you learned.

A country like Australia, or Germany is replicated in a country like the U S. So we again are pretty cautious when we are launching products.

Hope, we so far we're seeing similar results. So we're hoping that that continues and that will lead to broader market rollout I think.

Globally, if we do see that so stay tuned for more on that on the monetization front, we launched our first half on the monetization side early this.

Only this week actually and essentially at the moment you can think of it as you get a certain number of compliments for three that you can send per day and then you would have to pay for additional complements right. It's really a sort of center type of experience.

Where do you want to take some of the macro front. Thanks for the question so as far as the outlook on the macro environment goes I think it's important to note that we're very fortunate to be in a business really centered around this core human needs and finding human connection ultimately so people want that connection no matter what.

It's happening with the economy and remember our apps are such a great value compared to many other ways of meeting our monthly subscription is quite literally cheaper than drinks and a nice bar in New York City on just one date. So that access you can get through our product is it almost unparalleled so for <unk>.

<unk> App, we are not noticing any impact on the business so far as it pertains to these macro moving trends we tend to have a more affluent customer base on bumble op and the behaviors. We have seen to <unk> point earlier suggest that they are continuing as they always have so tomorrow. Its hard for example earlier.

We've seen U S bundle customers traveling to Europe much more this summer than they did last time last year.

And of course, I want to be clear that I am but do we do have a more economically disadvantaged customer base, who has struggled throughout the pandemic. So we're seeing some of those struggles continue with that audience. Their travel are slightly down as part of that but as we mentioned we are starting to see some green shoots in that business as well.

As our new initiatives start to take hold so we will continue to of course watch this very closely as it continues to be a very evolving situation, but we are we are positive as it stands.

Okay. Thank you Whitney Thanks Derek.

Thanks.

One moment for our next question.

Our next question comes from the line of Lauren shrink from Morgan Stanley . Your line is open.

Great. Thanks, just a few quick ones I guess, you mentioned the bumble up net adds in the third quarter might be.

Below where you were expecting before or are you still expecting sequential acceleration in net adds in the third quarter.

And then second how confident.

Or how do you gain confidence and there'll be acceleration in the fourth quarter on the tougher comparison and then lastly, any update on your conversations with Google on out potential spot buy like deal. Thanks, So much.

Yes, sure so just to be cleared for Q3 I am still.

<unk> net adds to be to be higher than what we had in Q2 of this quarter rate. Obviously you had originally said that we may potentially have a hockey stick just given that some of our.

Lower priced bundles, we're going to launch in the earlier part of Q3, so now with that potentially shifting to the later part of Q3.

We that hockey stick, maybe less of a hockey stick than we thought but again just to be clear it will be more than what we saw in Q2 in terms of.

In terms of Q4.

Again in November .

We are very methodical about how we test.

Alright.

And if you remember even last year. We saw we had very specific product launches that we had coming up in Q4 and Thats, what we launched and we delivered on those so again we feel.

Based on extensive testing that we've done that.

The stuff that we have in the pipeline for Q4 is all stuff that we feel very.

Are you concerned about a lot of these will start launching in the latter part of Q3, and then we will start to ramp up in Q4 and again like we've said also this year. We are taking a very for 360 degree approach to how we are planning to launch a product, it's not just us launching a product and letting it out in the wild it's going to be accompanied by a very robust marketing program that will also.

To accompany the product launch so.

And just overall the strength that youre seeing from a.

And on top of the funnel perspective that makes us pretty confident that we will.

The numbers that we've set out for payers for the second half of the year and then with respect to Google again.

I'm sure all of you have been following the news as closely as we have.

I think the latest news.

Is the announcement that Google has made in the European economic area down.

<unk> third party providers. So that is definitely a change that is sort of new on the horizon. We are talking to Google about how that gets implemented that is an approval process that you have to go through.

So that is something that is likely going to come down the pipe.

Yeah.

Just for everyone's benefit that is.

Largely going to still involve us paying 12% to Google and then the balance to a third party payment providers, though from a margin perspective, we don't expect to see.

Any saving with respect to that.

That is beneficial as obviously this makes the user flow flawed.

What are what our user.

<unk> put a much better experience for them. So obviously, we're taking a close look at that and then around the larger user choice billing program. We are in active conversations with Google and as we've always said we have a good relationship with them. So when we can.

Have something to say, obviously, we'll share it with everyone.

Thank you.

One more for next question.

Our next question comes from the line of Brad Erickson from RBC capital markets. Your line is open.

Hi, Thanks.

So I think you know when you rolled out when you expanded the plans from one to two.

You too.

Two thirds of adoption to the higher price plan, maybe just talk about your expectations for how.

That mix will look with a new lower priced bundles and I guess, how much of the payer inflection you're pointing to Q4 is expected to come from existing free users.

Attracting new users with more attractive pricing.

Yes so.

Yes.

It's likely to be a mix of both I think we are always very very conscious about making sure that when we launch new pricing programs that we don't cannibalize existing payers in any way. So the way we are designing the college bundle is going to be again targeted towards students that are not paying for any of our paid program.

So these will be.

New college students that enter the dating ecosystem for the first time as well as existing students whether they are in the senior junior here that don't pay for anything today, because they don't see value in the bundled booster bundled premium tier, but they will start to see value in this our new colleagues bundle that we put together. So it is a it is a it.

As a mixed approach we had always.

Making sure that we continue to drive penetration up but at the same time. We are also very focused on getting new users into the fourth as part of this process as well.

Got it and then.

It sounds like Youre rolling out because obviously later in the year than you'd previously anticipated.

Not really changing much full year revenue guidance is it fair to assume that there really wasn't that much.

Okay.

Contemplated in the original guidance around that plan and I guess, how should we think about that ramping over the next year, particularly maybe any any color on that.

Beyond the U S and so forth.

Yeah.

So from an overall what do we have planned for the year I think other than the fact that we are moving some things between Q3 and Q4 really there isn't any other change in terms of how we are thinking about the full year guide obviously that means that it pushes some revenue.

From this year into the early part of next year, but again from a.

What we wanted to do and from an overall growth perspective, there's really no big change in the story other than that obviously FX continues to go down and so we've just incorporate that in our guidance.

Toward this target I know if you want to talk about our international plan for how.

How we are thinking about the first half.

Yes, I think if the questions around international growth I think we are going to be.

Really taking methodical regional approach so we've talked about the countries that we're in.

The moment that we are excited about the moment countries like Germany like brands like Benelux.

Mexico.

Chile, Brazil et cetera.

What youre going to see us really focusing on next year, both depth within those markets as well as expanding kind of methodically into new markets. We are very focused.

Countries when you mentioned.

Lastly, there.

Like I say, India, it may be better to do a local.

And locally tailored bundle rate than what we have available globally. So that is something we will be taking a harder look at it in 2023 as well.

One moment for our next question.

Our next question comes from the line.

Deepak much Ivano from Wolfe Research your line is open.

Great. Thanks for taking the questions. So a couple of ones first.

Further noted that the inclination from first time users to use dating products hasn't really return to pre pandemic levels yet not sure. If you are seeing similar trends on top of the funnel any thoughts or views you can provide on that would be very helpful. And then second can you talk a little bit more about the marketing spend.

Even a little bit below us and I believe you are hoping to ramp the spend our head of summer is that due to maybe better rois youre seeing on advertising channels or is that due to the delay in the I'll call. It subscription to launch any color you can add there would be great.

Sure Hey, Deepak so.

And first time users I'll focus my answer on the U S as a sort of.

A very mature market for us we are actually seeing.

Really first time since the pandemic started we are seeing early signs that the that the.

User base is.

Really coming back more actively more like it was in pre pandemic times I think that we are.

Very happy with the results of the marketing programs that we have rolled out in in North America. This combination as we've talked about before of bumble IRL really leaning into that hybrid experience online plus offline leaning into our success stories to generate word of mouth and really.

Build that organic demand so initiatives like that and we are seeing that that new user is.

That we think is both a macro point as the pandemic becomes endemic but also a result of these very deliberate actions, we've taken on the marketing and product side to two.

To tailor ourselves for the post pandemic world right, where people do want to go out and meet people in real life. So very pleased with that still pretty early days, but it was.

Very nice thing to see this quarter.

In terms of marketing spend.

Yes, there is a couple of things going on there we are.

Very disciplined ROI oriented marketers and so we are.

Getting good Rois, we are taking advantage of those wherever we.

Wherever we find those opportunities and I think that we are you'll see us leaning in certain markets and then leaning back in other markets depending on how the ROI trends are shaping up we are finding that theres a lot of really good opportunities in some of the social platforms.

IOS as an example at the moment and less so at this particular moment on Android.

That's been a trend that's been happening for a little while now so so we are shifting our mix always keeping that return on AD spend target in mind.

A part of how we spend our marketing dollars to support new product launches and so with some of the.

Timeline shifts a couple of weeks here and there that are.

<unk> talked about we have moved around some of the marketing dollars to make sure. We're fully supporting the marketing the product activity that product roadmap activities that we have so that will be the other thing on the margin that youre seeing.

Got it thanks, so much.

Thank you.

One more for next question.

Our next question comes from the line of Benjamin Black from Deutsche Bank. Your line is open.

Great. Good afternoon. Thank you for the question.

Your competitor was obviously launching them.

Geared towards monetizing woman.

Question here as you get.

The competition is rising in this space and how do you feel positioned competitively and then secondly, with the launch of the student subscription tier complements but for good how should we thinking about bumble RP.

<unk> growth for the balance of the year and into next thank you very much.

Thank you so much for the question I'll start with the competition piece I'll break it down in two parts I'll start just with the broader view on competition and more generally and then we will take the woman piece second.

And then I'll turn it over to a new on the last question.

First and foremost, we're very happy with our performance versus our competition this quarter.

Based on third party data sources, we believe that we gained download share against our major competitors and almost all of our major markets.

As I mentioned in the prepared remarks.

This momentum is continuing into July and the same data sources are showing that bundle.

The number one most downloaded dating app and a number of our major major markets, including Germany. We believe that there is a number of reasons for that so first of all.

Our brand promise and this comes to the woman piece, which will get to in a second but our brand promise to women continues to resonate. So according to morning consoles we've substantially.

<unk> and our net promoter scores within U S women more so than our competitors and second our product continues to see high and increasing engagement. This really reflects the success of our product and our marketing roadmaps, including our increasing focus on hybrid that offline and online approach to dating and then.

Lastly, we know that people are really successful on bumble, we have a platform.

That we have called it started on bumble and this really celebrates that so for example, we're seeing increasing integration of our brand into wedding, we receive a lot of wedding and bias engagement announcements and baby announcements at our office. This generates that word of mouth, which then in turn drives organic growth. So all of these have worked together.

Together to create what we believe is this unique ecosystem that all to say.

We are really gaining market share in this organic way and this is sustainable over the long term.

Resonates on a global level, so let's move to the women's piece.

Then to make dating that our kinder and safer for women. This is truly at the foundation of everything we've done. Therefore, we've earned our stripes by being known as this woman first brand that is not something that can be replicated easily and we don't believe it can be replicated at all.

This this is really why we have such a strong audience amongst women in a hypertensive you to pay and an industry, leading NPS score with women.

So that I'll, just say and to conclude to turn it over to a new we have not seen.

Large impact to date from competitors add ons for women and we believe that it is really what I just attributed to that too is that it's just not fundamentally focused.

And they're in our DNA so over to you <unk> on the revenue quickly on our people again as I've said before we largely expect this will be flat year over year on our people.

Obviously FX will play a part in it and then again some of the lower priced offerings that we have will also play a part in it. So again nothing has really changed fundamentally from what we said before.

On a full year basis, I expect bumble bee.

Around the flat or people range that I had provided before.

Great. Thank you and thank you for all the color.

Yes.

One more for next question.

Yes.

Our next question comes from the line of John Blackledge from Cowen Your line is open.

Great. Thanks, I'm just curious if you could provide an update on the acquisition and more broadly if you could discuss kind of how you're thinking about potential M&A opportunities.

Sure.

I'll start with M&A, and then I'll give you a quick update on fruit so.

It's important to note that we remain really excited by our organic growth and the potential there, but as we showed with our first acquisition quick update to come there in a moment, we are very open to M&A when it fits with our mission our strategy and our share technology and marketing platform. So I would say, there's five key bullet points to keep in mind.

When we.

Slash talent equally both while being financially accretive and five does it capture adjacencies close to our core dating and connections business, which would just extend tammen LTV, so where we see attractive opportunities. We are open to actively exploring.

Those and we will be opportunistic we have a strong balance sheet and a really strong.

Hum.

Residents with founder we believe that founders are really intrigued by by what we do by our mission alignment and and our shared infrastructure to help them scale and find monetization and so on and so forth. So we definitely have capacity to do more and as always we'll of course be extremely disciplined in our approach to that so let's just turn.

The fruits really quickly. So Q2 marked our first full quarter with fruits since we acquired the App in January and we have successfully and smoothly integrated it with our group.

First is already leveraging the expertise of Bumble, Inc. So focusing on foundational elements of its business like safety and content moderation data science, AI and monetization and so on.

We are excited to see the potential for fruit. It is solid lead the number two most downloaded app in its home country of France.

Transparency when you date, so you select a fruit to indicate what your relationship intention is and you can match accordingly, so it's very much aligned.

May I ask a follow up.

Sure certainly.

So would you or any of the today. This concludes today's conference offering too.

<unk> or <unk>.

So it's very interesting and this is part of the shared resource infrastructure that we have we can really evaluate what certain features and functionalities are working in one product versus another and there's always the option to test and iterate on that and to try it in new markets, new audiences and even cross platform. So there is.

Definitely opportunities in the future to two test on other products, but right now we're really exciting we're very excited with what we're seeing on that product and we're excited to watch that.

Journey to scale.

Thank you that is all the time, we have for Q&A. Today. This concludes today's conference call. Thank you for participating you may now disconnect everybody have a great day.

Q2 2022 Bumble Inc Earnings Call

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