Q4 2023 Bumble Inc Earnings Call
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Hello, and welcome to the Bumble fourth quarter 2023 financial results conference call. My name is Elliot, and I'll be coordinating your call today.
Speaker Change: Hello, and welcome to the Bumble fourth quarter 2023 financial results Conference call My.
Elliott: My name is Elliott and I'll be coordinating your cold.
If you would like to ask a question during today's event, please press star followed by one on your telephone keypad. I'd now like to hand over to Cheryl Valenzuela, Vice President of Investor Relations. The floor is yours.
Elliott: If you would like to register your question Joan States. Please press star followed by one on your telephone keypad.
Elliott: I would now like to hand over to Cheryl balance write off Vice President of Investor Relations. The floor is yours. Please go ahead.
Please go ahead. Thank you, Elliot. Thank you for joining us to discuss Bumble's fourth quarter and full year 2023 financial results. With me today are Lydiani Jones, CEO, and Anu Subramanian, CFO, of Bumble. 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 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 factors and risks that could cause actual results to differ materially from these forward-looking statements are discussed 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, 2022, and our subsequent periodic filings. During the call, we also referred 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.
Cheryl: Thank you Elliot. Thank you for joining us to discuss bundles fourth quarter and full year 2023 financial results with me today are <unk>, chairman CEO and a new Super Monnion CFO of bundle.
Speaker Change: 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 to us.
Speaker Change: 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 factors and risks that could cause actual results to differ materially from these forward looking statements are discussed in more detail in our earnings press release and filings with the SEC.
Speaker Change: Including our annual report on Form 10-K for the year ended December 31, 2022, and our subsequent periodic filings.
Speaker Change: 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 reconciliations to the most comparable GAAP measures are available in today's earnings press release, which is available on the Investor Relations section.
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.bumble.com. And with that, I'll turn it over to Lydiani. Thank you, Cheryl, and good afternoon, everyone. It's an honor to join all of you today for my first earnings call as Bumble's CEO. I want to sincerely thank Whitney for her continued partnership. She's a founder who is a pioneer for women, who has built an incredible company that has created lasting value for customers. I also want to thank the board for their confidence and trust in me and the entire Bumble team for their support during my onboarding. From the first time I met Whitney and proceeded to meet our employees and many of our customers, the impact Bumble has had on so many people's lives has been inspiring to me.
Speaker Change: Our web site at IR Dot Bumble dotcom.
Lydia: And with that I'll turn it over to Lydia I D.
Lydia D: Thank you Sheryl and good afternoon, everyone.
Lydia D: It's an honor to join all of you today for my first earnings call as Bumble C L.
Lydia D: I want to sincerely. Thank Whitney for her continued partnership she's a founder who is a pioneer for women who has built an incredible company that has created the lasting value for our customers.
Lydia D: I also want to thank the board for their confidence and trust in me and the entire bumper team for their support during my Onboarding from the first time I met with me and proceeded to meet our employees and many of our customers being pack Bumble has had on so many people's lives has been inspiring to me.
As a long-time tech leader for both consumer and enterprise businesses, I joined Bumble because I felt deeply drawn to its mission to create healthy and equitable relationships and by the impact Bumble has had on helping millions of people around the world find love, connection, companionship, and friendship. Since its founding, Bumble's powerful brands have, in aggregate, served a passionate customer base of hundreds of millions of customers in more than 160 countries around the world. I have now been with Bumble for two months, and I'm even more convinced of the opportunities that lie ahead of us. I have met and connected with dozens of our customers.
Lydia D: As a longtime tech leader for both consumer and enterprise businesses I joined Bumble, because I felt deeply drawn to its mission to create healthy and equitable relationships, but the impact bumble has had in helping millions of people around the world I Love connection companionship.
Lydia D: And friendship.
Lydia D: Since its founding mumbles powerful brands have in aggregate served a passionate customer base of hundreds of millions of customers in more than a 160 countries around the world.
Speaker Change: I have now been with bumble for two months and I'm, even more convinced of the opportunities that lie ahead of us.
Speaker Change: I have met and connected with thousands of our customers fully immersed myself in our products and technology dove deeply in all aspects of our business and have seen firsthand the caliber of talent, we have with our employees.
I fully immersed myself in our products and technology, dove deeply into all aspects of our business, and have seen firsthand the caliber of talent we have with our employees. I'm a product leader at heart, and I'm truly excited to help unlock the company's potential by building innovative products that help our customers find love and connection throughout their lives. The global addressable market for online dating remains strong, with about 2 billion single people around the globe, and we see continued demand and opportunities to drive growth in this market.
Speaker Change: I'm, a product leader at heart and I'm truly excited to help unlock the company's potential by building innovative products the lead our customers to find love and connections throughout their lives.
Speaker Change: The global addressable market for online dating remains strong with about 2 billion single people around the globe and we see continued demand and opportunities to drive growth in this market.
We're well positioned to capture this opportunity with the strong brands and assets in our portfolio. But at the same time, I took this role knowing that the online dating industry hasn't seen true innovation in several years, and the population of active users is undergoing a generational transition that rightfully expects more from their experience. We're not immune to these dynamics, and we have also had some company-specific execution challenges that disproportionately affect one Bumble app and have impacted our company's near-term outlook reflected in today's guidance. We're taking significant and decisive actions to address these issues. Over the past 18 months, we launched a number of new features in the Bumble app, which, while individually promising, have in aggregate slowed the overall app performance and cluttered the user experience. Additionally, our new pricing tier, introduced last December, Premium Plus, has also not had a clear enough product market fit.
Speaker Change: We're well positioned to capture this opportunity with the strong brands and assets in our portfolio.
Speaker Change: At the same time I took this role knowing that the online dating industry hasn't seen true innovation in several years and the population of active users is undergoing a generational transition that rightfully expect more from their experiences we're not immune to these dynamics and we have also had some company.
Speaker Change: Specific execution challenges that disproportionately affect of bumble out and have impacted our company's near term outlook reflected into these guidance, we're taking significant and decisive actions to address these issues.
Speaker Change: Over the past 18 months, we launched a number of new features and bumble lap, which while individually promising having aggregate slowed to the overall outperformance and cluttered the user experience.
Speaker Change: Additionally, our new pricing tier introduced last December premium plus has also not had a clear enough product market fit.
These are things we strongly believe are within our control to solve, and we're doing so with four major steps. First, in Q2 of this year, we plan to reignite Bumble's strength by relaunching Bumble with a compelling modern experience, geared toward capturing a broader audience and aimed at having a stronger appeal to younger users, easing the profile creation experience, optimizing the core performance of the app, and strengthening our AI capabilities to enhance fake account detection and bring profile picture insights to lead our customers to success faster. As a part of this release, we will also revamp our Premium Plus offering. These efforts will be a significant moment of evolution for us in bringing women's empowerment to the core of our experience.
Speaker Change: These are things we strongly believe are in our control to fall and we're doing so with four major steps.
Speaker Change: First in Q2 of this year, we plan to reignite bumble strengths I re launching bumble app with a compelling modern experience geared toward capturing a broader audience and aimed at having a stronger appeal to younger users.
Speaker Change: Using the profile creation experience optimizing the core performance of the App and strengthening our AI capabilities to enhance fake account detections and brain profile picture insights to lead our customers to success faster as.
Speaker Change: As a part of this release, we will also revamped our premium plus offering.
Speaker Change: These efforts will be a significant moment of evolution for us in bringing women's empowerment to the core of our experience.
This relaunch will also provide us with a strong platform for ongoing innovation. It will come with a new marketing campaign across our core markets, extending our reach and showcasing the benefits of our offering. This is the first major overhaul of Bumble apps in the past two years, and I'm very proud of our team for embracing a faster pace of innovation and marking the start of a new phase of customer experiences in the online dating category.
Speaker Change: This relaunch will also provide us with a strong platform for ongoing innovation.
Speaker Change: It will come with the new marketing campaign across our core markets, extending our reach and showcasing the benefits of our offerings.
Speaker Change: This is the first major overhaul of bumble app in the past two years and I'm very proud of our team for embracing a faster piece of innovation and marking the start of the new phase of customer experiences in the online dating category.
Second, I recognize that to sustainably reaccelerate growth, we must drive further innovation, be operationally excellent, and be more attuned to our customers' needs. To that end, earlier today, we announced a transformation plan that will return us to a functional operating model that will foster better collaboration across our apps and allow us to deliver a comprehensive portfolio of experiences to our customers, centralize our mission-critical teams, including engineering product, in fewer locations, remove layers to accelerate decision-making and speed to market, and eliminate duplicate roles to drive stronger operating leverage. Reducing the size of our team is an extremely difficult decision, and I'm incredibly grateful to all of our employees for the role they've played in getting Bumble to where it is today. We will do all that we can to support affected colleagues during this time.
Speaker Change: Second I recognize the two sustainably reaccelerate growth, we must drive further innovation be operationally excellent and be more attuned to our customers' needs to that end earlier today, we announced the transformation plan that will return us to a functional operating model that will foster better.
Speaker Change: We've shown across our apps and allow us to deliver a comprehensive portfolio of experiences to our customers.
Speaker Change: Centralize our mission critical teams, including engineering product and fewer locations.
Speaker Change: Move layers to accelerate decision, making and speed to market and eliminate duplicate roles to drive stronger operating leverage.
Speaker Change: We've just seen the size of our team is an extremely difficult decision and I'm incredibly grateful to all of our employees for the role. They played in getting Bumboat, where it is today, we will do all that we can to support affected colleagues during this time.
Right-sizing the company will help us unlock our ability to deliver long-term growth by greatly improving our operational efficiency, agility, and speed, and enable us to reinvest a portion of our expected savings in critical foundational capabilities, including dating innovation with AI, machine learning, and safety-differentiated experiences that will drive our future. We'll remain laser-focused on execution during this time of transition. Third, we are updating our Bumble, Inc. strategy and innovation roadmap to take advantage of our more agile development platform. My vision for Bumble is to lead the online dating industry and connections at large with a more positive experience for users around the globe. As a technologist, I have been really impressed by the unique data set, knowledge, and intellectual property Bumble has related to personalization, matching, and safety that has been deeply tuned to Bumble's guidelines.
Right sizing the company will help us unlock our ability to deliver long term growth by greatly improving our operational efficiency agility and speed and enable us to reinvest a portion of our expected savings and critical foundational capabilities, including dating innovation with AI machine learning.
Speaker Change: And safety differentiated experiences that will drive our future will remain laser focused on execution. During this time of transition.
Speaker Change: Third we are updating our bundling strategy and innovation roadmap to take advantage of a more agile development platform my.
Speaker Change: My vision for <unk> is to lead that the online dating industry and connections at large we see more positive experiences for users around the globe.
Speaker Change: As a technologist I have been really impressed by the unique dataset knowledge and intellectual property bumble has related to personalization matching in safety that has been deeply tuned to bundled guidelines.
We will lean on this technical foundation and emerging technologies, like generative AI, to bring product innovations to meet the demand we see in the market. We'll do this while staying true to our mission and focusing our innovation to accelerate human connection and encourage equitable and healthy relationships. Bumble has always been about more than dating, and we have seen significant customer demand for friendship and platonic connections throughout different phases of life.
Speaker Change: We will lean on this technical foundation and emerging technologies like generative AI to bring product innovations to meet the demand we see in the market will do this while staying true to our mission and focus our innovation to accelerate human connection and encourage equitable and healthy relationship.
Speaker Change: Bumble has always been about more than data and we have seen significant customer demand for friendship and peloton and connections throughout different phases of life.
But candidly, we have been slow to realize this broader vision with Bumble BFF thus far. Going forward, we will focus our reinvestment to accelerate a bolder strategy from Bumble for Friends, one that will focus on building equitable and safe friendships across communities of people with similar interests that want real life connections. We plan to bring along the millions of customers we currently have in our base that are eager to continue to be part of our platform. We'll have more to share about our full company strategy and product roadmap in the months ahead. Finally, to bring our strategy to life, we recently strengthened our executive team with three talented new leaders who will be instrumental in driving the vision for Bumble's future. I'm excited to welcome Allie Rayl as Chief Product Officer, Antoine LeBlond as Chief Technology Officer, and David Ard as Chief People Officer. Allie most recently served as Senior Vice President of Product at Slack, overseeing Slack's customer experience and communication platform, along with user safety and customer support.
Speaker Change: Candidly, we have been slow to realize this broader vision with bumblebee S have thus far.
Speaker Change: Going forward, we will focus our reinvestments to accelerate the bolder strategy from Bumble for friends, one that will focus on building equitable and see friendships across communities of people with similar interests that want real life connections you plan to bring along the millions of customers with.
Speaker Change: Currently have in our beef that are eager to continue to be part of our platform.
Speaker Change: We will have more to share about our full company strategy and product roadmap in the months ahead.
Speaker Change: Finally to bring our strategy to life, we recently strengthened our executive team with three talented new leaders, who will be instrumental in driving the vision for bumblebee future.
Speaker Change: I'm excited to welcome Allie rail and Chief product Officer, Antoine Leblond, as Chief Technology Officer, and David Arden as Chief people Officer.
Speaker Change: Ali most recently served as senior Vice President of product at flock overseen slacks customer experience and communication platform.
Speaker Change: Along with user safety and customer support.
As a member of Slack's founding team, Allie's experience overseeing viral user growth will be invaluable to Bumble. Antoine previously served as Senior Vice President of Software Engineering at Sonos and held a 25-year leadership tenure at Microsoft prior to that, driving platform growth at scale across several businesses; his experience innovating and scaling effectively will be paramount. David joins us from Salesforce, where he served as Head of Employee Success, leading the People's Strategy, Business Partner Teams, and Benefits across global teams. He previously served in people leadership roles at Equinox and Gap.
Speaker Change: As a member of <unk> founding team ollie's experience overseeing viral user growth will be invaluable to bumble.
Speaker Change: Antoine previously served as senior Vice President of soft reengineering at Sonus and held a 25 year leadership tenure at Microsoft prior to that driving platform growth at scale across several businesses.
Speaker Change: He has experience innovating and scaling effectively will be paramount.
Speaker Change: David joins us from Salesforce, where he served as head of employee success meeting the people strategy business partner teams and benefit across global teams and previously served in people leadership roles at Equinox and gap.
Finally, I am thrilled to announce that Selby Drummond has been promoted to Chief Marketing Officer for Bumble Inc. She will oversee both brand and marketing, bringing her extensive experience from companies such as Snap and Vogue to optimize the performance of marketing investments and expand the reach of our brands globally. With Ali, Antoine, David, and Selby leading critical functions of our business, along with existing executive leaders who have the context of the company and the industry, we are well equipped to drive breakthrough innovation, advance our mission, and drive our business back to strong growth. Given the strength of our financial position today, and as we update our broader strategic plan in the coming months, we will also be evaluating the best use of capital for Bumble to drive value creation and long-term growth for our business.
Speaker Change: Finally, I am thrilled to announce that Saudi Drummond has been promoted to chief marketing officer from Bumble, Inc.
Saudi Drummond: He will oversee both brand and marketing, bringing her extensive experience from companies such as snap and book to optimize the performance of marketing investments and expand the reach of our brands globally.
Saudi Drummond: With Allie Antoine David in Selby, leading critical functions of our business along with existing executive leaders, who have the context of the company and the industry. We are well equipped to drive breakthrough innovation and advance our mission and driver business back to strong growth.
Saudi Drummond: Given the strength of our financial position today, and as we update our broader strategic plan in the coming months. We will also be evaluating the best use of capital for bumble to drive value creation and long term growth of our business.
The steps we're taking today set the stage for our next chapter of growth. We have work to do, but you have my full commitment to innovate and sharpen our focus on execution to create a durable foundation for our business. I look forward to meeting our stakeholders to better understand their needs in the weeks and months ahead, and we'll be open and transparent in communicating progress on our strategy as we move forward. But before I turn it to Anu, I want to express that I'm tremendously honored to be leading this talented and passionate Bumble team in the pursuit of Bumble's founding mission with our renewed vision and focus. We have an exciting journey ahead of us, and I am thrilled to be leading our team to realize the incredible opportunity ahead on behalf of our customers, our employees, and our shareholders.
Saudi Drummond: The steps, we're taking today set the stage for our next chapter of growth.
We have work to do but you have my full commitment that will innovate and sharpened our focus on execution to create a durable foundation for our business.
Saudi Drummond: I look forward to meeting our stakeholders to better understand their needs in the weeks and months ahead and.
And we will be open and transparent and communicating progress on our strategy as we move forward.
Speaker Change: So before I turn it to a new I want to express that I'm tremendously honored to be leading this talented and passionate bumble team in the pursuit of bundles founding mission with our renewed vision and focus.
Speaker Change: We have an exciting journey ahead of us and I am thrilled to be leading our team to realize incredible opportunity ahead on behalf of our customers our employees and our shareholders and with that I'll turn it over to a new well has been a close partner since the start.
And with that, I'll turn it over to Anu, who has been a close partner since the start. Thank you, Lidyani. A warm welcome again to Bumble, and I look forward to our continued partnership. And good afternoon, everyone. I'll walk you through our Q4 and full year 2023 results and then share more about our outlook for the first quarter and full year 2024. Unless stated otherwise, all comparisons are on a year-over-year basis.
Speaker Change: Thank you live Jani a warm welcome again to bumble and I look forward to our continued partnership and good afternoon, everyone. I'll walk you through our Q4 and full year 2023 results and then share more about our outlook for the first quarter and full year 2024.
Unless stated otherwise all comparisons are on a year over year basis.
Total Bumble Inc. revenue in Q4 increased 13% to $274 million, in line with our outcome. Revenue was driven by a 16% increase in paying users with contributions from both the Bumble and Bidoo apps. The growth in paying users was offset by a 2% decrease in our workforce.
Speaker Change: Teva Bumble ink revenue in Q4 increased 13% to 274 million in line with our outlook.
Speaker Change: Revenue was driven by a 16% increase in paying users with contributions from both bumble and Badu apps.
Speaker Change: The growth in paying users was offset by a 2% decrease in our people.
Revenue from Bumble increased 16% to $221 million. App paying users increased 21% to 2.7 million, and we added 83,000 paying users sequentially. The increase in paying users was driven by a combination of growth in active users, as well as payer penetration.
Speaker Change: Revenue from Bumble App increased 16% to 221 million.
Speaker Change: Bumble are paying users increased 21% to $2 7 million and we added 80000 paying users sequentially.
Speaker Change: The increase in paying users was driven by a combination of growth in active users as well as payer penetration.
Bumble apps are people declined 4% to $27.37 primarily due to geographic mix shift. Within many of our top individual markets, we achieved our user growth as a result of pricing optimizations and higher consumable mix. Badoo App and other revenue was $53 million, up 4%.
Speaker Change: Bumble ops are people declined 4% to $27.37, primarily due to geographic mix shift with.
Speaker Change: Within many of our top individual markets, we achieved our people growth as a result of pricing optimization and higher consumable mix.
Speaker Change: But do it up in other revenue was 53 million up 4%.
We continue to make meaningful progress towards product stabilization and return to growth, driven by a well-received brand refresh and update of the app's user experience. We are encouraged by the continued traction we are seeing in the business. Badoo App and other paying users grew 8% to 1.3 million, up 66,000 sequentially. Starting in Q4 2023, we have begun including contributions from Fruits in Badoo and other key operating metrics of paying users, and our people; excluding fruits, paying users increased $19,000 from Q3 to Q4 2023. Badoo Lab and other art people grew 2% to $12.69; excluding fruits, our people declined 1% year over year.
Speaker Change: We continue to make meaningful progress towards produced stabilization and return to growth driven by a well received brand refresh and update of the apps user experience.
Speaker Change: We are encouraged by the continued traction we are seeing in the business.
Speaker Change: When do App and other paying users grew 8% to $1 3 million up 66000 sequentially.
Speaker Change: Starting in Q4 2020, we have begun including contributions from its roots in Baidu App and other key operating metrics are paying users and our people.
Speaker Change: Excluding fruits paying users increased 19000 from Q3 to Q4 2022.
Speaker Change: But do happen other than our people grew 2% to $12.69.
Excluding <unk>, our people declined 1% year over year.
Turning now to expenses. We continue to spend with discipline, driving consistent leverage in line with our targets for the year while investing in our apps and infrastructure to support continued growth. Total GAAP costs and expenses were $280 million for the quarter, and on a non-GAAP basis, excluding stock-based compensation and other non-cash or non-recurring items, total costs and expenses were up 10% to $200 million.
Turning now to expenses, we continue to spend with discipline driving consistent leverage in line with our targets for the year, while investing in our apps and infrastructure to support continued growth.
Speaker Change: Total GAAP costs and expenses were 280 million for the quarter.
Speaker Change: And on a non-GAAP basis, excluding stock based compensation and other noncash or nonrecurring items total costs and expenses were up 10% to $200 million cost of revenue was 79 million and grew 19%.
Cost of revenue was $79 million and grew 19%. As a percentage of revenue, cost of revenue was 29% versus 28% in the year-ago period. Sales and marketing expenses grew 8% to $70 million. This represents 26% of revenue versus 27% in the year-ago period. G&A expenses were $30 million, or 11% of revenue, compared to $32 million, or 13% of revenue last year. Product development expenses were $21 million, or 8% of revenue, versus $18 million, or 8% in the year-ago period. Q4 gap net loss was $32 million compared to a loss of $159 million in the year-ago period.
Speaker Change: As a percentage of revenue cost of revenue was 29% versus 28% in the year ago period.
Speaker Change: Sales and marketing expenses grew 8% to $70 million.
Speaker Change: This represents 26% of revenue versus 27% in the year ago period.
Speaker Change: G&A expenses were $30 million was 11% of revenue compared to 32 million or 13% of revenue last year.
Speaker Change: It's not a development expenses were 21 million about 8% of revenue versus $18 million or 8% in the year ago period.
Speaker Change: Q4, GAAP net loss was 32 million compared to a loss of 159 million in the year ago period.
As a reminder, last year's Q4 included an impairment charge of $141 million related to Bidu Brands. Q4 Adjusted EBITDA was $74 million, representing a margin of 27% consistent without outgoings. For full year 2023, total Bumble Inc. revenue grew 16% year-over-year to $1.052 billion, in line with our guidance. Revenue from the Bumble app grew 22% to $845 million as paying users grew 26% to $2.5 million. We grew paying users by more than 500,000 for a second consecutive year. Our GAAP net loss for full year 2023 was $2 million compared to a net loss of $114 million in 2022.
Speaker Change: As a reminder, last year's Q4 included an impairment charge of $141 million related to Purdue brand.
Speaker Change: Q4, adjusted EBITDA was 74 million, representing a margin of 27% consistent with that outlook.
Speaker Change: So fully a 2023 total bundle ink revenue grew 16% year over year to 1.052 billion in line with our guidance.
Speaker Change: Revenue from Bumble App grew 22% to 845 million paying users grew 26% to $2 5 million.
Speaker Change: We grew paying users, but more than 500000 for a second consecutive year.
Speaker Change: Our GAAP net loss for full year, 2023, with $2 million compared to a net loss of $114 million in 2022.
Adjusted EBITDA was $276 million, representing a 26% margin, up $110 billion. Our strong operating results and disciplined spending also enabled us to deliver a 43% increase in free cash flow to $167 million in 2023, further strengthening our balance. We ended the year with $356 million in cash and cash equivalents. During the fourth quarter, we repurchased $136 million worth of shares under our current stock repurchase authorization, including $100 million worth of shares repurchased directly from Blackstone.
Speaker Change: Adjusted EBITDA was 276 million, representing 26% margin up 110 basis points.
Speaker Change: Our strong operating results and disciplined spending also enabled us to deliver a 43% increase in free cash flow to $167 million in 2023 further strengthening our balance sheet.
Speaker Change: We ended the year with $356 million in cash and cash equivalents.
Speaker Change: During the fourth quarter, we repurchased 136 million worth of shares under our current stock repurchase authorization, including hundred million worth of shares repurchased directly from Blackstone.
At the end of Q4, we had $143 million remaining in our authorization, and as of today's call, we have $123 million left. We remain very committed to our buyback program. Now moving on to our outlook for 2024. As Lidyani just mentioned, we are adjusting our 2024 revenue outlook to reflect Bumble's slower-than-expected start to the year and app-specific execution challenges. We feel confident that these issues are within our control, and we are actively working to resolve them. We expect that the Q2 relaunch of Bumble, along with the launch of other key features on our product roadmap, will re-accelerate growth in the second half of 2024. As a result, for full year 2024, we estimate total Bumble Inc. revenue growth of 8 to 11 percent. This assumes FX will be approximately one point headwind during the year.
Speaker Change: At the end of Q4, we had 143 million remaining in our authorization and as of today's call. We have 123 million left.
Speaker Change: We remain very committed to our buyback program.
Speaker Change: Now moving onto our outlook for 2024.
Speaker Change: He just mentioned we are adjusting our 2020 for revenue outlook to reflect bumble apps slower than expected start to the year and <unk> specific execution challenges we.
Speaker Change: We feel confident that these issues are within our control and we are actively working to resolve them.
Speaker Change: We expect that the Q2 relaunch of Bumble I along with the launch of other key features on our product roadmap will re accelerate growth in the second half of 2024.
Speaker Change: As a result portfolio 2024, we estimate total bundling because revenue growth rate of 8% to 11%.
Speaker Change: This is FX will be approximately a one point headwind during the year.
We expect Bumble app revenue to grow between 9 to 11% year over year. Our Bumble App Revenue Outlook includes expectations for full-year net ads of approximately $350,000 to $400,000. On the cost side, the bold actions we announced today around our workforce transformation allow us to gain significant operating leverage and put us on a strong path towards our goal to continue expanding margin. We estimate future annualized OPEC savings from this workforce reduction to be approximately $55 million, of which we expect to selectively reinvest approximately $15 million in areas of product engineering, safety, and brand that will help drive long-term growth. As a result, for 2024, we expect at least 300 basis points of year-over-year adjusted EBITDA margin expansion. Additionally, in 2024, we expect to incur approximately 20 to 25 million of severance and other related charges, primarily in the first half related to this transformation, and our adjusted EBITDA outlook excludes the impact of these charges.
Speaker Change: We expect bump up revenue to grow between 9% to 11% year over year.
Speaker Change: Our bumping up revenue outlook includes expectations for full year net adds of approximately 350 to 400000.
Speaker Change: On the cost side, the bold actions, we announced today around our workforce transformation allow us to gain significant operating leverage and put us on a strong path towards our goal to continue expanding margins.
Speaker Change: We estimate future annualized opex savings from this workforce reduction to be approximately 55 million of which we expect to selectively invest approximately $15 million in areas of product engineering safety and brand that will help drive long term growth.
Speaker Change: As a result for 2024, and we expect at least 300 basis points, albeit over the year adjusted EBITDA margin expansion.
Speaker Change: In 'twenty 'twenty four we expect to incur approximately 20 to 25 million of severance and other related charges, primarily in the first half related to this transformation and our adjusted EBITDA outlook excludes the impact of these charges.
For Q1, we expect total revenue between $262 million and $268 million, representing a growth rate between 8% to 10%. We expect Bumble app revenue to be between $211 million and $215 million, representing a growth rate between 9% and 11%. Our Bumble app revenue outlook includes expectations for sequential net ads of approximately $30,000 to $40,000 in Q1. We estimate Adjusted EBITDA will be between $67 million and $70 million, representing a 26% margin at the midpoint of the range.
Speaker Change: For Q1, we expect total revenue between 262 million and 268 million, representing a growth rate between 8% to 10%.
Speaker Change: We expect bumble app revenue to be between $211 million and $215 million, representing a growth rate between nine and 11%.
Speaker Change: Our bumble App revenue outlook includes expectations for sequential net adds of approximately 30000 to 40000 in Q1.
Speaker Change: We estimate adjusted EBITDA will be between $67 million and $70 million, representing 26% margin at the midpoint of the range.
In closing, while we have more work ahead of us, we've already taken swift and decisive steps to optimize our operating model, right-size our team, and attract new leadership. We believe that the actions we are taking will accelerate our realization of the tremendous opportunity that exists in the global online dating market and beyond. The power of our brands, user affinity, and our guiding mission provide us with a very strong foundation to build upon, and we are confident that the execution of the plans we shared with you today will enable us to achieve long-term profitable growth while driving significant value for our shareholders for many years to come. And with that, I'll turn it over to the operator for Q&A. Thank you. Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted and loaded.
Speaker Change: In closing, while we have more work ahead of us we've already taken swift and decisive steps to optimize our operating model rightsize, our team and attract new leadership.
Speaker Change: We believe that the actions we are taking will accelerate our realization of the tremendous opportunity that exists in the global online dating market and beyond.
Speaker Change: The power of our brands use at affinity and are guiding mission provide us with a very strong foundation to build upon and we are confident that the execution of the plans. We shared with you today will enable us to achieve long term profitable growth, while driving significant value for our shareholders for many years to come.
Speaker Change: Tom.
Speaker Change: And with that I'll turn it over to the operator for Q&A.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: To ask a question. Please press star followed by one on your telephone keypad if.
Speaker Change: If you would like to withdraw your question. Please press star followed by one.
Speaker Change: When preparing to ask a question. Please ensure your device is on mute locally.
Alexandra Steiger: The first question comes from Alexandra Steiger with Goldman Sachs. Your line is open, please go ahead. Great, thank you so much for taking my question. Maybe one for Lydiane and one for Anu.
Speaker Change: Our first question comes from Alexandra <unk> with Goldman Sachs. Your line is open. Please go ahead.
Alexandra: Great. Thank you so much for taking my question, maybe one for lithium and one for a new so first of all thank you for laying out your priorities for the company, but coming in from the outside where do you see the biggest opportunities for bumble over the next few months either in terms of unlocking additional user growth or driving our people and.
So first of all, thank you for laying out your priorities for the company. But coming in from the outside, where do you see the biggest opportunities for Bumble over the next few months, either in terms of unlocking additional user growth or driving our people? And what do you think is currently most underappreciated by the investor community? And then one follow-up question for Anu on the 24 guidance.
Speaker Change: What do you think its guarantee most underappreciated by the Investor community and then one follow up for new under 24 guidance. So I do want to ask about your updated 24 guide and some of the assumptions that went into it now that you know Q1 is calling for a more pronounced deceleration in growth. So could you maybe talk about what are you seeing in there.
Alexandra Steiger: So I do wanna ask about your updated 24 guide and some of the assumptions that went into it now that Q1 is calling for a more pronounced deceleration in growth. So could you maybe talk about what you are seeing in the business today that is informing your view? And in that context, could you also elaborate a little bit more on the execution challenges you referenced in your prepared questions?
Speaker Change: Today that is informing your view and in that context could you also elaborate a little bit more like the execution challenges you referenced in your prepared remarks. Thank you.
Speaker Change: Okay.
Thank you, Alex, for the question. I am just thrilled to be here and honored to be leading this organization. I came to Bumble because I saw tremendous opportunity looking at the company overall. As we've heard from my prepared remarks, the company has reached about 200 million or beyond users globally over time. This is an incredible base.
Speaker Change: Thank you Alex for the question.
Speaker Change: I am just talked thrilled to be here and honored to be leading this organization I came to bundle because I saw tremendous opportunity looking at the company overall as we've heard from our prepared remarks. The company has reached about 200 million or beyond users globally over.
Speaker Change: Time. This is an incredible beef and we have a brand with that over the course of the 10 years continues to be strong in fact, it is the best brand in that favorability among large online dating apps.
Lydiani: And we have a brand that, over the course of the 10 years, continues to be strong. In fact, it is the best brand in that favorability among large online dating apps. I see a tremendous opportunity ahead. But when I came here, the reason why I came here was because I saw a lot of opportunities to innovate across our portfolio. So, as you heard us share, we are going to relaunch in the near term in Q2 the Bumble app.
Speaker Change: I see a tremendous opportunity ahead, but what I team here. The reason hiking here is because I saw a lot of opportunity to innovate across our.
Speaker Change: Portfolio. So as you heard us share we are going to re launch in the near term in Q2 bundle.
This relaunch represents one of the largest revamps of the app over the course of the last two years, and what we want to do here is completely modernize the experience to speak to a broader audience. We believe there is a lot of opportunity to create a more human, more connected experience that will help dating be a desirable experience for users again. And that's why I'm thrilled to be investing in our resources and seeing the team take this new piece of innovation to get this product out for our customers. So that's from a near-term perspective. In addition to that, we see a tremendous amount of opportunity to continue to invest in international markets. The markets like Germany, Spain, France, and Western Europe overall, as well as some targeted markets like Mexico and India, where we're seeing really strong growth.
Speaker Change: And this relaunch represents one of the largest a revamp of the app over the course of the last two years and what we want to do here is completely modernize the experience to speak to a broader audience. We believe there is a lot of opportunity to create a more human more connected experience that will help dating b.
Speaker Change: A desirable.
Speaker Change: Experience for users again, and that's what I'm.
Speaker Change: I'm thrilled to be investing our resources and seeing the team take this new piece of innovation to get this product out for our customers.
Speaker Change: So that's from a near term perspective. In addition to that we see a tremendous amount of opportunity to continue to invest in international markets. There are markets like Germany, Spain, France in Western Iraq overall, as well as some targeted markets like Mexico, and India, where we're seeing really strong growth.
Lydiani: We're going to continue to invest in that. Long-term, I think there's a lot of opportunity for innovation in the category itself. I haven't seen such a tremendous disconnect between huge demand and a lack of innovation.
Speaker Change: We're going to continue to invest in that long term I think there's a lot of opportunity for innovation in the category itself I haven't seen such a tremendous disconnect between a huge demand and a lack of interviews and I think that is our biggest opportunity ahead and when I think about you know what investors.
I think that is our biggest opportunity ahead. And when I think about, you know, what investors should be thinking about, it's that we have a phenomenal following of customers. Over the last couple of months, I've had the opportunity to meet dozens of customers, and many of them have told me stories about how much they have been impacted by Bumble. I met Bumble grandma last week, you know, so people carry the Bumble brand in different parts of their lives.
Speaker Change: Should be thinking about it that.
Speaker Change: But we have often how many were following our customers over the last couple of months I've had the opportunity to meet dozens of customers.
Speaker Change: And many of them will tell me stories about how much they are happening parted by bumble I met a bump a grandma last week. So people carry the brand in different parts of their lives we are going to double down on the Sox, but we have the strong affinity to our brand. This is part of what I really wanted.
Lydiani: We are going to double down on the fact that we have this strong affinity for our brand. This is part of what I really want us to continue to invest in things like Bumble for Friends, where we can bring our base with us, offering a differentiated set of experiences. So I hope our investors are deeply excited about us realizing the potential that we see. But I'll pass it to you, Anu, for the second part of the question. Sure. Thanks, Riyani. Hey Alex,
Speaker Change: It's to continue to invest in things like Bumble for friends, where we can bring our base with us with a differentiated set of experiences. So I hope our investors are deeply excited about realizing the potential that we see but I'll pass it to you on your second part of the question sure. Thanks, Liana, Hey, Alex So maybe I'll just.
Anu: So maybe I'll just break down the guidance a little bit, starting with Bumble and what has changed for us from our prior guidance. So while, you know, our top of the funnel has remained strong in many of our global markets, we are seeing a slower than expected start to the year, primarily in the U.S., and the usual Q1 seasonal rebound that we normally expect to see has been less pronounced than in the past. Second, you know, as Liliani said in her prepared remarks, some of the newer products, such as Premium Plus, which we launched at the end of December, while they have been revenue positive, are not showing the incremental uplift that we would like to see and that we had originally anticipated. And so, for these reasons, we are adjusting our revenue outlook for Bumble to be 9 to 11% for the full year.
Speaker Change: Break down the guidance, a little bit and starting with <unk> and what has changed for us from our prior guidance so well.
Speaker Change: Top of the funnel has remained strong in many of our global markets. We are seeing is slower than expected start to the year, primarily in the U S and the usual Q1 seasonal rebound that we normally expect to see has been less pronounced than in the past.
Speaker Change: Second you know as linearity said in her prepared remarks, some of the newer products such as premium plus which we launched at the end of December while they have been revenue positive. They are not showing the incremental uplift that we would like to see and that we had originally anticipated and so for these reasons, we are adjusting our revenue outlook.
Speaker Change: For Bumble App should be 9% to 11% for the full year and as you've heard today, we are taking immediate and swift action to make the changes that we need to make to the product roadmap and.
And as you've heard today, we are taking immediate and swift action to make the changes that we need to make to the product roadmap. And with the planned relaunch of the app in Q2, which will be accompanied by a marketing campaign, we expect that our revenue will accelerate in the second half post this launch. And then we have a slew of other features that we are excited about on the product roadmap that we will then proceed to launch with in the second half of the year. So, hopefully that gives you a flavor for how we're thinking about Bumble for the rest of the year. Barrett: We now turn to Andrew Marrock with Raymond James.
Speaker Change: With the planned relaunch of the App in Q2, which will be accompanied by the marketing campaign, we expect that our revenue will.
Speaker Change: Accelerated in the second half post this launch and then rehab.
Speaker Change: Other features that we're excited about on the product roadmap that people then precede the launch ramp in the second half of beer. So hopefully that gives you a flavor for how we're thinking about bundled up for the rest of the year.
Speaker Change: <unk>.
Speaker Change: Very helpful. Thank you.
Speaker Change: Okay.
Speaker Change: Now turning to Andrew <unk> with Raymond James Your line is open. Please go ahead.
Andrew Marrock: Your line is open, please go ahead. Hi, thank you for taking our questions. So when you talk about the Bumble app relaunch appealing to a broader set of users, could you elaborate on that a little bit? Are there different cohorts of users, either by age or market, or some other segmentation that the current version is weakened with that you can shore up? Or is that maybe a new audience segmentation? And a great question.
Andrew: Alright, Thank you for taking our questions. So when you talk about the bumble app relaunch appealing to a broader set of users I guess could you elaborate on that a little bit are there different cohorts of users either by age or market or some other segmentation that the current version as we can with that you can shore up or is that maybe net new audience segments.
Andrew: Integrate question.
Lydiani: We believe that there are a couple of different components to product development, and this has been one of the best parts of joining Bumble is diving deeply into our product innovation. We believe that there is an opportunity for us with a completely modern experience to continue to serve the set of customers that are part of our customer base today and are very excited about what we already deliver, but also that we can be more approachable to a set of users that are younger. And that means a completely different tone of voice, a different profile creation, a different set of illustrations, a brand refresh overall.
Andrew: We believe that Theres, a couple of different components in the product development and this has been one of the best.
Andrew: Best parts of joining Buffalo diving deeply into our product innovation.
Andrew: We believe that there is an opportunity for us we see a completely modern experience to continue to serve the funnel customers that are part of our customer base today and are very excited about what we already deliver but also that we can be.
Andrew: Be more approachable to a set of users that are younger and that means a completely different tone of voice a different profile creation or different product demonstrations a brand refresh of where all this is going to allow us to expand that reach especially in markets like the U S market, where we haven't seen.
This is going to allow us to expand that reach, especially in markets like the US market, where we have seen a little bit more headwind. In addition to that, there are other things that I think are going to be really important for us. This release is really going to be very focused on the core of what our mission has been all about, which is putting the user experience, the women's experience, and safety at the forefront of our experiences. So we are really optimizing or ensuring that we have high quality profile creation, a very easy to use process for that profile creation, and an additional set of safety capabilities that's going to help our customers be more successful. We believe these things are going to bring a more balanced set of customers across different segments in different markets.
Andrew: E a little bit more headwind.
Andrew: In addition to that there are other things that I think are going to be really important for us. This release, it's really going to be very focus to the core of what our mission has been all about which is putting up the forefront of our experiences the women's experiences and safety. So we are really optimizing or ensuring that we have high.
Andrew: Quality profile creation, I very easy to use a process for that profile accretion additional side of safety capabilities, that's going to help our customers be more successful. We believe these sort of things are going to bring a more balanced set of customers across different segments in different markets and so we're really real.
And so we're really, really excited about that. This is more about expansion and reinvigorating our own core, which we think will drive growth for us. Great, thank you. And maybe related a little bit. I mean, you hear anecdotal reports about younger users maybe being a little bit more hesitant or discouraged to engage with and then pay for online dating services. So I think you spoke a little bit about your top of funnel still being strong and a lot of the changes that you've outlined for the Bumble app relaunch. But I guess are there any points where you would directly be able to push back against those narratives that you hear?
We're excited about that this is more about expansion and reigniting our own core.
Andrew: Which we think will drive growth for us.
Speaker Change: Great. Thank you and may be related a little bit I mean, you hear anecdotal reports about younger users, maybe being a little bit more hesitant or discourage to engage with and then pay for online dating services. So I think you spoke a little bit about your top of funnel still being strong and a lot of the changes that you've outlined.
Speaker Change: For the Bumble App relaunch, but I guess are there any points, where you would directly be able to push back against those those narratives that you here. Thank you.
Lydiani: Thank you. Yeah, no. It's a great, great point. I, you know, certainly have heard that as well as I've come into the market. I think there is a generational transition that we are seeing, and we have to be really thoughtful about how we bring our customers along on our journey because we have a lot of users today that love the paradigm of online dating, you know, swiping, discovery, and searching, but there's also a set of users that want more flexibility to be able Our goal is to set this Q2 launch as just the start of ongoing innovation for our users. And we want to really be focused on listening and evolving the experiences based on what our users, especially younger users, are saying. So, you can expect a certain level of personalization and flexibility over time based on what we learn from our users. We think there is an opportunity to approach younger users differently to meet this need for more organic discovery of friendships, companionship, love, and beyond.
Speaker Change: Yeah, no. It's a great great point, I, certainly have heard that as well as I've come into that market.
Speaker Change: And I think there is a generational transition that we're seeing and we have to be really thoughtful about how we bring our customers a longer journey, because we have a lot of users today, but love the paradigm of the online dating.
Speaker Change: You know swiping and discovery and searching but there's also a set of users that want more flexibility to be able to experience and discover people in a more organic and natural way. Our goal is to set to the Q2 launch is just the start of an ongoing innovation for our users and we want.
Speaker Change: We will be focused on listening and evolving the experiences based on what our users, especially younger users are telling so you can expect a sort of personalization and flexibility over time based on what we do learn from our users. We think there is an opportunity to approach younger users differently to meet this need.
Speaker Change: More organic discovery of friendships companionship love and beyond so I am really I think thats one of the most exciting parts of being a great product for us.
So, I am really, I think that's one of the most exciting parts of being a great product person is that you get to navigate the different experiences, and flexibility is going to be a really big part of how we believe the category and certainly our own product development will be evolving. Our next question comes from Cory Carpenter with JP Morgan. Your line is open, please go ahead. Hey, good afternoon.
Speaker Change: One is that you've got to navigate the different experiences and flexibility is going to be a really big part of how we believe the category and certainly our own product development will be following.
Our next question comes from Cory Carpenter with Jpmorgan. Your line is open. Please go ahead.
Cory Carpenter: Hey, good afternoon.
Cory Carpenter: You mentioned earlier in the call the 1Q seasonal rebound being less pronounced in the U.S. than in the past. Curious what you think is driving that, and how much of that's Bumble specific versus broader industry trends. And then on the product side, you mentioned challenges with Premium Plus, but I'm curious what you're seeing with some of your other recent product launches, like compliments, SBs in the lower price tier, and the role those could play in the brand refresh or the app refresh. Thank you. Thank you, Corey.
Cory Carpenter: Earlier in the call and the <unk> seasonal rebound and be less pronounced in the U S. In the past curious what you think is driving that how much of that is bundled specific versus broader industry trends.
Cory Carpenter: On the product side, you mentioned challenges with premium plus but curious what you're seeing with some of your other recent product launches my compliments therapies, and the lower price tier and enroll those could play in the brand refresh with the App refresh. Thank you.
Speaker Change: Thank you Corey.
Speaker Change: Certainly if you have.
Lydiani: I mean, certainly, if you've all seen download data and pay for your user data as for the industry, and there has been a pattern of slowdown over time for us specifically, as you heard from both Tanyu and me, we have had some internal execution challenges that have not really delivered the cohesive set of experiences that we want to deliver. But we have seen pockets of really great positive success. Complements is a really great one of them.
Speaker Change: Oh seen download data and peer user data.
Speaker Change: For the industry there has been a pattern of slow down over time for.
Speaker Change: For us specifically as you heard from both Tony and I are we have had some internal execution challenges that have not really deliver a cohesive set of experiences that we wanted to deliver but we have seen pockets of really great positive success complements has a really great one of them. So what we're doing now with the three one.
So what we're doing now with this relaunch is really looking end to end on the experience. What pieces of product experiences have we launched that have added benefits for users that we want to not only keep but also enhance, and which ones do we think are not necessarily adding value? Best of Ease is a great example of an experience that really is tailored for users, but we've seen some mixed results.
Speaker Change: Launch is really looking and to learn from the experience what pieces of product experiences have relaunched that have added benefit trees are so we want to not only keep but also enhance and which ones. We think are not necessarily adding value our best to be as a great example of an experience that really is tailored.
Speaker Change: For users, but we've seen some mixed results. So we think there is a great opportunity there, but we want to enhance the overall E.
So we think there is a great opportunity there, but we want to enhance the overall AI set of capabilities that drive that portion of our experience. So our release now is going to be aimed at addressing a lot of these execution challenges so that, as a whole, the experience will feel very cohesive for our customers. You did touch on tiering. Let me unpack that a tiny bit.
Speaker Change: I set of capabilities that drives that a portion of our experience. So our relief now is going to be aimed at addressing a lot of these execution challenges so that as a whole the experience will feel very cohesive for our customers.
Speaker Change: You did touch on the tearing things, let me unpack that a tiny batch.
From a Premium Plus perspective, we absolutely believe in subscription tiers. Different customers want to have different sets of experiences, and it provides a strong monetization strategy for us. So that model is certainly one that we want to maintain. But what we have found is Premium Plus tested really well in its early days, but as we expanded to a broader audience, we didn't see sustainability of that particular tier with a lot of our users. And what we have found is that there wasn't enough differentiation from one tier to the next.
From a premium plus protection, we absolutely believe in subscription tiers.
Speaker Change: Customers want to have different set of experiences and it provides a strong monetization strategy for us.
Speaker Change: Our model is certainly one that we want to maintain what we have found is a premium plus tested really well are in its early days, but as we expanded to a broader audience. We didn't see a sustainability of that particular tier with a lot of our users and what we have found is that there wasn't enough differentiation.
Speaker Change: <unk> from one tier to the other theres still a lot of demand.
There is still a lot of demand and not enough differentiation to keep our users there. So, what we are focused on with this launch and what will be evolving beyond the initial launch is creating a very crisp differentiation so that we drive more users towards higher-end tiers with the value that they will feel good about so that we can sustain those users there. The base tier, what we found is that the addition of that base tier was adding more hurdles for our users' adoption of the larger tiers or the higher-end tiers. We put a pause on the base tier for now.
Speaker Change: Not enough differentiation to keep our users there so what we're focused on with this launch and will be evolving beyond the initial launch is creating a very crisp differentiation. So that we drive more users towards higher end tiers with the value that they you won't feel good about them. So that we can sustain those users there.
Speaker Change: The base tier you know what we have found is that we are the.
Speaker Change: Additionally, now that these tier was adding more hurdles.
Speaker Change: Hurdles for our earnings there is adoption of the larger tiers or the higher end tiers than we put a pause on the beast here for now our goal is to simplify the set of experiences. So that we get the most value in the highest RP proved for the users that are coming into a bubble in this launch and then we'll revisit that base.
Our goal is to simplify the set of experiences so that we get the most value and the highest RP-proof for the users that are coming into Bumble in this launch, and then we'll revisit that base tier as we get the Bumble app out and we get some feedback from the set of experiences we'll launch. So lots going on, but very, very excited about this launch. We now turn to Shweta Khajuria with Evercore ISI.
Speaker Change: Here as we get a bump out and we get some feedback from the set of experiences will launch so lots going on but very very excited about this launch.
Speaker Change: We now turn to Schweitzer <unk> jewelry are with Evercore ISI. Your line is open. Please go ahead.
Shweta Khajuria: Your line is open, please go ahead. Thank you for taking my questions. Lidyani, one for you.
Schweitzer: Thank you for taking my questions Lady any one for you.
Lydiani: Where do you see the lowest-hanging fruit on innovation for the product, as you think about across the platform? And then for Anu, could you please help us with marketing spend, how you're thinking through the year from Q1 to Q4, as you think about the product launches coming in the back half? Thanks a lot.
Schweitzer: Where do you see as the lowest hanging fruit on innovation on the product as you think.
Schweitzer: Think about across the platform and then for a new could you. Please help us with marketing spend how youre thinking through the year from Q1 to Q4 as you think about the product launches coming in the back half. Thanks a lot.
Great to meet you. Thank you for the questions. In terms of low-hanging fruit... What we're going to do most immediately with our April launch is reduce points of friction. You know, one of the things that I certainly saw is that we did have a lot of capabilities that were just adding more confusion for our customers. So this is one of the reasons why we're doing a full revamp of the experiences so that we can really feel what that experience is like for users end-to-end. And that's what we're going to address right away. But let me tell you what I think is one of the most exciting things that I've seen since I got here. I've been in product management forever.
Speaker Change: Great Great to me and thanks for the question.
Speaker Change: In terms of low hanging fruit.
Speaker Change: What we're gonna do most immediately with our April launch is reducing points of friction you know one of the things that are uncertain.
Speaker Change: But we did have a lot of capabilities I was adding just more confusion for our customers. So this is one of the reasons why we're doing a full revamp of the experiences. So that we can really feel what that experience is like for users in July so that we're gonna drops right away, but let me tell you what I think is one of the most exciting things that I've seen.
Speaker Change: Since I got here I've been in product forever I'm coming from many areas, both consumer and enterprise AR background I've seen here that we have 10 years of strong customer data that has been very very tuned with a lot of information about users preferences behavior learnings in <unk>.
Lydiani: I'm coming from many years of consumer and enterprise background, and I've seen here that we have 10 years of strong customer data that has been very, very tuned with a lot of information about users' preferences, behavior, learnings, and patterns. And Bumble has been doing safety capabilities for the past 10 years from day one. So a lot of ML, a lot of technology that has been focused on safety for our users. That is the biggest potential for us near-term and long-term because we can not only use the various technologies that I'm sure you're all hearing about with generative AI, LLMs, we can use all of that but really fine-tune it to what is unique and powerful to Bumble. And that is one of our biggest assets and one that I am particularly excited about. But let me pass this on to Anu to talk about our marketing spend. Sure. Hey Shweta.
Speaker Change: Modern and all have been doing safety capabilities for the past 10 years from day, one with a lot of them a lot of technology that has been focused on safety for our users that is the biggest potential for us near term and long term because we can not only use the.
Speaker Change: Various technologies that I'm sure you're all hearing about with generative V. I am alone. We can use all of that but really fine tuned to what is unique and powerful to bumble and that is one of our biggest assets and one that I am, particularly excited about but let me pass it to you to talk about our marketing spend.
Speaker Change: Sure.
Anu: So quickly on marketing spend, just at a high level. So we are intending to create leverage on our marketing spend line item. We've consistently been saying we want to get more efficient.
Speaker Change: So quickly on marketing spend just at a high level. So we are intending to create leverage on our marketing spend line item, we've consistently been saying we want to get more efficient we want to make sure that we have the highest standards in terms of rois so prepared to.
We want to make sure that we have the highest standards in terms of ROI. So compared to where we were in 2023 in terms of marketing as a percentage of revenue, you should see in 2024 that line item get some leverage. In terms of how we expect spending to come about over the course of the year, you should see us spend more in the first half of the year than we will in the second half of the year.
Speaker Change: Where we were in 2023 in terms of marketing as a percentage of revenue you should see in 2020 for that line item see some leverage.
Speaker Change: In terms of how we expect to spend them.
To come about.
Speaker Change: Over the course of the year.
Speaker Change: You should see a sea of spend.
Speaker Change: More in the first half of the year than we will in the second half of the year. So we will start spending more in Q1, leading up into our Q2 launch.
So we will start spending more in Q1 leading up to our Q2 launch, and more in Q2 as a percentage of revenue. And then you'll start to see the marketing spend ease up as a percentage of revenue in Q3 and Q4 as revenue starts to ramp up as well. So that's at a high level how we are thinking about marketing spend. Now, as we always say, we have a high bar for how we think about ROI for our spend, both for our brand spend as well as for our growth marketing. So that is something that we take a look at on a market by market basis, as well as depending on what's happening from a product perspective. And you'll see us continue to do that. Our next question comes from Ygal Arounian with City. Your line is open. Please go ahead. Hey, good afternoon, everyone.
Speaker Change: In Q2, as well as a percentage of revenue and then youll start to see.
Speaker Change: The marketing spend is up as a percentage of revenue in Q3 and Q4 as revenue starts to ramp up this one so thats.
Speaker Change: At a high level, how we are thinking about marketing spend now as we always say we have a high bar for how we think about ROI, where our spend both for our guidance and as well as what our growth marketing so that is.
Speaker Change: Something that we take a look at on a market by market basis, as well as depending on what's happening from a market perspective. So.
Speaker Change: Youll see us continue to do that.
Speaker Change: Yes.
Speaker Change: Our next question comes from HL and running them with Citi. Your line is open. Please go ahead.
HL: Hey, good afternoon, everyone.
Ygal Arounian: This first question is just on the margin expansion and the investment, and I guess what you're reinvesting in the cost resizing. You know, Lydiana, coming in, you're talking about kind of significant investments and relaunching the Bumble app, accelerating the product roadmap, and transforming Bumble in general. Can you just talk about how you got to this level of framework or what you might think about in terms of the right level of investment? And then, on BFF also, just a little bit more color on what you've seen there and what some of the things there that you plan to do on the product roadmap to try to get that to accelerate or ramp up as well. Yeah, great. Lots of great points in the question there, so let me try to tackle them.
HL: First question just on the margin expansion and the investment in <unk>.
HL: Guess, what you are reinvesting.
HL: On the.
HL: Cost besides ing.
HL: We are living on it coming in.
HL: Talking about.
HL: Kind of significant investments are going to be watching the bumble add to accelerating the product roadmap and the transferring bumble in general can you just talk about how are you.
Speaker Change: Got it.
Speaker Change: This level of framework.
Speaker Change: What do you think about in terms of the right level of investment.
I guess on PFF also just a little bit more color on what you're seeing there and what some of the things there that you plan to do on the product roadmap to try to get that to accelerate a ramp up as well. Thanks.
Speaker Change: Yes, great.
Speaker Change: Great Great point of the question there so let me try to tackle them.
Lydiani: Coming into Bumble, the immediate opportunity that I saw for us, especially with the brand that we have, is the ability to serve our customers beyond just dating. It's to create a portfolio of experiences that we can bring our customers along with us and really start retaining that customer base for a much longer period of time, so from dating to friends, to official, and really provide a cohesive experience. So picture that as our directional vision.
Speaker Change: Going into a bundle the immediate opportunity that I saw for us, especially with the brands that we have.
Speaker Change: We need to serve our customers beyond just dating is to create a portfolio of.
Speaker Change: Experiences that we can bring on customers along with us and really start retaining our customer base for a much longer period of time, so from dating to France to official and really provide a cohesive experience. So picture that is our directional vision that has been the foundation of how we are framed.
Lydiani: That has been the foundation of how we've framed this transformation that you heard from us today. And I want to acknowledge today is a difficult day for all of our employees at Bumble. We are saying goodbye to a lot of colleagues that have played a big role in making Bumble what it is today, so I appreciate all that our employees have done for us.
Speaker Change: Transformation that you've heard from us today, and I want to acknowledge stupid difficulty for all of our employees. Our bundle. We are seeing goodbye to a lot of colleagues I have played a big role in making bump of what it is today. So I. Appreciate all that are important please have done fries.
Lydiani: But the foundation of this transformation is how we organize to fulfill this vision for our customers as quickly as we can. And that has been the foundation of organizing back into a functional model so that we're bringing in technical and product leaders that know how to build platforms at scale so that we can gain the most amount of leverage from our innovation and our resources on our investments. And I'm thrilled to welcome Ali and Antoine with the right experience that they have to help us realize that.
Speaker Change: The foundation of this transformation is how do we organize to fulfill this vision for our customers as quickly as we can and that has been the foundation of organizing back into functional model. So that we are bringing technical and product leaders that know how to build platform at scale.
Speaker Change: We can gain the most amount of leverage from our innovation and our resources on their investments and I'm thrilled to welcome Allie announced one with the right experience that they have to help us realize that.
And with that in mind, we've really focused all of our, you know, transformation decisions based on speed and agility; we've centralized some of our product engineering investments to allow us to go more quickly and drive decision making more effectively. And a big part of what we want to do in terms of reinvestment in the second part of your question is reallocating some of our resources into areas where we see the biggest opportunity for growth. And we see growth innovation in the dating segment, so bringing in more AI, more data, and more safety talent to organizations so that we can truly drive a more transformative set of innovations into the category and into Bumble for Friends. So let me unpack that just a little bit. Bumble BFF has had just a really small but strong following.
Speaker Change: With that in mind, we've really focused all of our.
Speaker Change: Transformation decision based on speed and agility, we've centralized some of our product engineering investments to allow us to go more quickly and drive decision, making more effectively and a big part of what we want to do in terms of reinvestment into the second part of your.
Speaker Change: Your question is reallocating.
Speaker Change: Reallocating some of our resources into the areas, where we see the biggest opportunity for growth and we see growth innovation on the dating segment, so bringing in more AI more data.
Speaker Change: And more safety.
<unk> two organizations, so that we can truly drive a more transformative sort of innovation into that category and into bundle for France. So let me unpack that just a little bit.
Speaker Change: But there will be a fast has had just a really small but strong following.
And the reason for that is that we have been using the same paradigm for BFFs as we have for dating. And when there is a one-to-one match for friendships, you're really limiting the set of users that are comfortable with that paradigm. And what we want to do is actually shift to that paradigm and make Bumble for Friends a lot more about building and finding communities. And this is truly what our customers are saying. They love being part of our platform, but it's really hard for them to connect with each other.
Speaker Change: The reason for that is that we have been using the same paradigm for <unk> as we have for David and when there is a one to one match for friendships you're really limiting the set of users that are comfortable with that paradigm and what we want to do is actually shifted that paradigm and making bumble for France a lot more.
Speaker Change: More about building and finding communities and this is truly what our customers are telling us they love being part of our platform, it's really hard to connect with each other so we are really going to accelerate the investment in that and I'm really looking forward to sharing more with all of you in the coming months as we sharpen our overall strategy.
So we are really going to accelerate the investment in that, and I'm really looking forward to sharing more with all of you in the coming months as we sharpen our overall strategy. Our next question comes from Justin Patterson with KeyBank Capital Markets. Your line is open, please go ahead. Hi there, Miles Shkubiak, on behalf of Justin.
Speaker Change: Our next question comes from Justin Patterson with Keybanc capital markets. Your line is open. Please go ahead.
Justin Patterson: Hi, there.
Justin Patterson: <unk> on for Justin.
Miles Shkubiak: Maybe to start, Lydiani, Bumble's done a good job of stabilizing the Bidu business. Just what are you seeing in that business to start, and how's the confidence level on maintaining that stabilization and returning growth to that business as it seems to be becoming a more important part of the equation? And then just on the full-year revenue guidance, maybe just the puts and takes on the macro factored in, the macro environment factored within that guidance. And then, just more broadly, how do you feel about the current macro environment relative to the end of 2023? Thank you. Thank you, Miles.
Speaker Change: Maybe to start.
Speaker Change: But we've done a good job of stabilizing.
Speaker Change: New business.
Justin Patterson: Just what are you seeing in that business to start.
Justin Patterson: And the confidence level.
Justin Patterson: Maintaining that stabilization.
Justin Patterson: And returning growth to that business.
Justin Patterson: It seems to becoming a more important part of the equation.
And then just on the full year revenue guidance, maybe just some puts and takes on the macro factor the macro environment factored within that guidance.
Justin Patterson: And then just more broadly how do you feel about the current macro environment relative to the end of 2023. Thank you.
Speaker Change: Thank you miles.
Lydiani: You know, it's been fascinating coming to the company and learning all of the transformation that we have already gone through with the Badoo relaunch last year, and it's been going really well. There has been a steady improvement in customer engagement, overall satisfaction, and, as you're seeing in our results, a steadier growth in our business. We're really excited about the progress that the team has made there, and we're going to continue to stay focused on that transformation. We believe we've really focused on delivering confident dating, which has been a core of that strategy. And it's responding really well with our customers.
Speaker Change: You know, it's been fascinating coming to the company and learning.
Speaker Change: All of the transformation that we have already gone through its about to re launch of last year and it's been going really well, it's been a steady improvement to the customer engagement overall satisfaction and as Youre seeing in our results a steadier growth to our business. We're really excited about the <unk>.
Speaker Change: Progress of the team has made there and we're going to continue to stay focused on our transformation. We believe we've really focused on delivering confident bidding which has been a core out that strategy and it's resonating really well with our customers who believe in continuing to push that forward because it's a very important part of our business as you called out.
Lydiani: We believe in continuing to push that forward because it's a very important part of our business, as you pointed out. In terms of macro, I'll pass it to Anu, but I do want to call out that we really, I certainly see a massive opportunity for the category overall, and it really is going to be a key focus for us to deeply listen to our customers in terms of the decisions that we make and the investments that we make. But Anu, do you want to provide a little bit more color to the macro environment?
Speaker Change: In terms of macro I'll pass to Andrew, but I do want to call out that we really.
Andrew: I, certainly see a massive opportunity into the category overall and it really is going to be a key focus for us.
Andrew: Deeply listen to our customers in terms of the decisions that we make and the investments that we make but I do want to provide a little bit more color into the macro environment sure. So just wanted to touch on macro I wanted to follow up on <unk> comments about baidu, because we didn't talk about it in the context of guidance we've been very pleased.
Anu: Sure. But before I touch on macro, I wanted to follow up on Nidhiani's comments about Bidu because we didn't talk about it in the context of guidance. We've been very pleased with Bidu's performance. As we've said, it's performing well, it has stable growth, and in many of its top markets, we're seeing strong growth across several metrics. So, we've not made any overall changes to our assumptions from when we last provided our guidance to now in terms of how we do and how others perform. So we, we continue to be very pleased about that. As you've seen from a net app perspective as well, but do is starting to turn positive, and, you know, throughout this year, we expect to see but do being flat to positive in terms of net ads every quarter.
Andrew: With produce performance.
Andrew: As we've said, it's performing well it has stable growth.
Andrew: And in many of its top markets Youre seeing strong growth across several metrics.
Andrew: So the we have not made any overall changes to our assumptions from when we had lost provider on guidance to now in terms of how it would do and other performs the way we continue to be very pleased about it.
Andrew: As you've seen from a net adds perspective as well, but do is starting to turn positive and.
Andrew: And in all through this year, we expect to see <unk> being flat to positive in terms of net adds every quarter. So again very pleased with the with the performance there.
Anu: So, again, very pleased with the performance there. In terms of how we've thought about macro in our guidance, as I mentioned earlier, we are seeing some slowness in our top of the funnel trends in primarily the U.S., where obviously the macro impact is probably more pronounced. We're seeing it, as we've said before, with our younger customers as well. So, we do think that there is an element of macro playing into some of the softness that we're seeing.
Andrew: In terms of how we've thought about a Mac.
Andrew: Macro in our guidance as I've mentioned earlier.
Andrew: Are seeing.
Andrew: Slow.
Andrew: Slowness in our top of the funnel alternate trends.
Andrew: In in primarily the U S.
Andrew: Obviously, the macro impact is probably more pronounced we are seeing it as we've said before with our younger customers as well. So we do think that there is an element of macro playing into some of the softness that we've seen.
So, we've made assumptions around how we think it progresses through the rest of the year in terms of what we are seeing today. And then the goal is that when the product relaunch happens in the second half of the year, the product starts to really resonate with our customers, and we are able to turn the dial up in terms of pay penetration, our people, and ultimately revenue. Because the core job to be done from Bumble's perspective is to make sure that we give the customers the best possible experience, and that's what we are heavily focused on. And that's what you'll see us talk about all year. We now turn to Benjamin Black with Deutsche Bank. Your line is open; please go ahead.
Andrew: So we've made assumptions around them.
Andrew: How we think it progresses through the rest of the year in terms of what we're seeing today and then the goal is that when the product relaunch happens in the second half of the year the product starts to really resonate with our customers and we're able to turn the dial up in terms of penetration in our people and ultimately revenue because somebody on newsprint.
Andrew: On the core job to be done from from Bumble apps perspective is and making sure that we give the customers the best possible experience and Thats. What we are heavily focused on and that's what you'll see us talk about hold through this year.
Andrew: We now turn to Benjamin Black with Deutsche Bank. Your line is open. Please go ahead.
Benjamin Black: Great, thank you for taking my questions. Professor Diani, I have a bigger picture question for you on just the online dating market in general. You know, there are obviously concerns that it's approaching maturity, even, you know, saturation. So, you know, when you were contemplating taking on the role of CEO at Bumble, what did you specifically see that gave you confidence and, you know, that the end market growth is still very attractive? And then perhaps one for Anu too, it'd be great to hear sort of a capital allocation policy update. Just, you know, given the broader changes in leadership here, are you potentially open to taking on a little bit more leverage to sort of fund some of your initiatives? I'd be curious to hear about that.
Benjamin Black: Great. Thank you for taking my questions plus a.
Benjamin Black: A bigger picture question for you on.
Benjamin Black: Bidding market in general.
Benjamin Black: Obviously concerns.
Benjamin Black: Maturity.
Benjamin Black: Exploration. So you know when you're contemplating taking on the role of the CEO.
Benjamin Black: Seal Bumble what did you see specifically that gave you confidence in the air.
Benjamin Black: End market growth is still very attractive and then perhaps one or two.
Benjamin Black: It'd be great to hear sort of a capital allocation policy update just you know just given the.
Benjamin Black: The broader changes in leadership here are you potentially open to taking a little bit more leverage to fund some of your initiatives.
Lydiani: Thank you. Yeah, Benjamin, thank you for that question. You know, certainly, I had read a lot of reports about the category as I was considering the role, but, you know, I find if you look at the data as yourself, that is an interesting disconnect: the demand for connection and love continues to be really strong 2Billion single people around the globe. Yet the products that are bearing the set of experiences to create those connections are not serving users the way that they want to. That actual disconnect was what got me most excited about taking this job, especially here at Bumble, where I felt so compelled by the mission and the fundamentals of the company, the brand, and the financial strength are so positive. I believe when Apple launched the iPhone, people were also talking about why was someone entering a mature smartphone category.
Speaker Change: Be curious to hear about that thank you.
Speaker Change: Benjamin Thank you for that question.
Speaker Change: Certainly had rather a lot of reports about the category about considering that the rule them, but.
Speaker Change: I find if you look at the data as you yourself as well, but it's.
Interesting disconnect the demand for connection and loves continues to be really strong 2 billion single people around the globe.
Speaker Change: Yes.
Speaker Change: The products that are bearing the set of experiences to create those connections are not serving users the way that they want here.
Speaker Change: That actual disconnect with what got me most excited about taking this job, especially here at bumble, where I felt compelled to the mission and the fundamentals of the company the Browns and the financial strength are so positive.
I believe.
Speaker Change: One Apple launched the iPhone people are also talking about why it was somewhat entering a mature.
Speaker Change: In the smartphone category it is innovation and detail to the Polish experience of our uses that drive change. So I'm excited to bring a fresh perspective to the category, but certainly we're focused on our customers and our company and we believe we can really.
It is innovation and detail in the Polish experience of our users that drive change. So I'm excited to bring a fresh perspective to the category, but certainly we're focused on our customers and our company. And we believe we can really meet the needs of the users that are currently there. Demand is there. We just have to meet it. So, truly, truly excited about being here.
Speaker Change: Meet the needs of the users that are currently there. The demand is there we just have to to meet it so.
Speaker Change: Truly truly excited about being here.
Anu: Great. Hey, Ben, just quickly on capital allocation. Obviously, Lidia and I have been spending a lot of time since she started reviewing our capital allocation policy. You know, at a high level, the themes that we have given you all in the past are still very much the themes that we are focused on, which is number one, focusing on the organic growth of our business. We continue to be opportunistic in terms of thinking about M&A. Again, the bar for M&A is very high for us. And lastly, you know, our commitment to returning cash back to shareholders continues to be very high. As you've seen, we did the transaction in Q4 where we bought shares directly from Blackstone, and we've continued to buy into 2024 as well.
Great and just quickly on capital allocation.
Speaker Change: Our facility on me and I've been spending a lot of time.
Speaker Change: Since she started reviewing our capital allocation policy.
Speaker Change: At a high level.
Speaker Change: The themes that we have given.
Speaker Change: You all in the past are still very much the.
Speaker Change: The themes that we're focused on which is number one focusing on the organic growth of our business we.
Speaker Change: We continue to be opportunistic in terms of thinking about M&A again, the bar for M&A is very high for us and lastly, our commitment to returning cash back to shareholders continues to be very high as you've seen we did the transaction in Q4, where we bought shares directly from Blackstone and <unk>.
Speaker Change: Dubai into 2024 as well so our commitment around returning cash continues to be high obviously, we are continuing to see where the markets are in terms of interest rates.
So our commitment around returning cash continues to be high. Obviously, we are continuing to see where the markets are in terms of interest rates. You know, we have the benefit of being pretty creative from a cash perspective, and we feel like we have a very strong balance sheet. So we are reviewing all the options, and we'll provide more updates as we go through the year. Our next question comes from Ken Goralski with Wells Fargo. Your line is open. Please go ahead. Thank you very much for the questions. I appreciate it.
Speaker Change: We have the benefit of being a fully.
Speaker Change: From a cash perspective, and we feel like we have a very strong balance sheet. So we're reviewing all the options and <unk>.
Speaker Change: We'll provide more updates as we go through the year.
Speaker Change: Our next question comes from Ken Girl Ski with Wells Fargo.
Speaker Change: Your line is open. Please go ahead.
Speaker Change: Thank you very much for the questions. Appreciate it first maybe for Ani.
Ken Goralski: First, maybe for Lydiane, could you just talk about when you talk about applying AI and the opportunities there? Could you give us a bigger picture, give us a sense of the capabilities that you have in-house, what you need to build versus potentially partner with? How are you going to accomplish what you're setting out to do? And then maybe the second one, a little bit more tactically, is when you talk about the softness in the 1Q match, your competitor has indicated a step up in tender marketing. Are you seeing any impact from additional tender marketing in 1Q on the top of the funnel, especially in the U.S.? Thank you. Thank you.
Speaker Change: Could you just talk about when you talk about applying AI and the opportunities. There could you just bigger picture give us a sense of.
Speaker Change: The capabilities that you have in house, what you need to build versus potentially partner. How are you going to accomplish what you. What you are looking at what you're setting out to do.
Speaker Change: And then maybe the second one a little bit more tactically as well.
When you talk about the softness in <unk>.
Speaker Change: <unk>.
Speaker Change: Match your competitor has indicated a step up in Tinder marketing are you seeing any impact.
Speaker Change: From from.
Speaker Change: Additional tinder marketing and <unk>.
Speaker Change: The top of funnel and especially in the U S. Thank you.
Lydiani: Thank you for that question. So, let's start with the first portion related to AI. As I mentioned earlier, this is the most exciting part of Untouched Potential for us is that we have an immense amount of data related to users' preferences, behaviors, and what drives, you know, positive success for our customers. So just a tremendous, tremendous amount of insight in-house, which has been amazing to see. Separately, AI hasn't been new to Bumble. Bumble has been innovating in AI for a really long time. It launched a lot of capabilities in photos and detection of fake accounts, as we've recently launched, and there's so much more.
Speaker Change: Thank you for that question, so let's start with the first portion related to AI.
Speaker Change: As I mentioned earlier. This is the most exciting part of untapped potential for US is that we have.
Speaker Change: Immense amount of data related to users' preferences behaviors, what drives a positive success for our customers. So just a tremendous tremendous amount of insight in house, which has been amazing to see him suffer.
Speaker Change: Separately I hasn't been new to Bumble and Bumble has been innovating and ask for a really long time, it launched a lot of capabilities in photo and detection of peak accounts since we recently launched and there's so much more so we have a an amazing foundation.
So we have an amazing foundation of AI and ML capabilities that exist today that we can already lean on as well. So what we want to do is not only lean on the set of data and capabilities that we have, but we can also partner, and we have been in early pilots with several large language model vendors, to really advance what we believe will help users through this augmented coaching set of experiences. And so we think there are just a tremendous amount of near-term opportunities with partners in the space. Now, with, you know, a longer-term vision, we believe there is, because of our safety in principles, we will be continuing to innovate in AI for a long time. I think there's a lot of unique value to creating a set of principles that's related to healthy and equitable relationships and in relationships and communities, and so forth. So you will see a lot of innovation for a month there. Now, in terms of, you know, competitive pressure, we have always been in a competitive environment. You know, that's always been the case.
Speaker Change: Of AI and ml capabilities that exist today that we can already now as.
Speaker Change: Well, so what we want to do is not only a lien on the set of data and capabilities that we have but we can also partner and we have been in early pilots with several large language module vendors to really advance what we believe will help users too.
Speaker Change: Augmented coaching set of experiences and so we think there is just a tremendous amount of near term opportunities with partners in the space now with longer term vision. We believes there is because of our safety in principles, we will be continuing to innovate.
Speaker Change: NII for for a long time, I think there's a lot of our unique value to creating a set of principles that still needed to help you in a corner ball.
Speaker Change: Relationships and relationships in communities and so forth. So you will see a lot of innovation for months.
Speaker Change: Now in terms of.
Speaker Change: Competitive pressure, we have been in a competitive environment always you know that's always been the case our focus is to really.
Our focus is to really prioritize our customers. I think strong companies are the ones that focus on customers first and foremost. So our focus right now is investing in our marketing, our product, and our overall set of customer experiences across our key markets to meet what is differentiated for Bumble again, which is women's experience, safety, and so forth. So we certainly feel that it's fully in our control to help our customers meet our experience. We now turn to Curtis Nagel with Bank of America. Your line is open. Please go ahead.
Speaker Change: Prioritize our customers I think strong cost companies.
Speaker Change: Are the ones that focus on customers first and foremost so our focus right now is investing our marketing our product and our overall set of customer experiences across our key markets to meet what is differentiated for bumble.
Speaker Change: Again, which is a women's experience safety.
Speaker Change: So forth. So we certainly feel that it's fully in our control to help our customers.
Speaker Change: Our experiences.
Speaker Change: We now turn to Curtis Nagle with Bank of America. Your line is open. Please go ahead.
Curtis Nagel: Oh, great. Thanks. Thanks very much for taking my question. First, we just wanted to quickly go back to, you know, premium plus. I understand the point of, I guess, not being enough differentiation to justify the tier to a broad enough audience. What do you imagine adding to this tier to make it, I guess, more appealing? And then, just a quick follow-up for new, just what drove the RPPU weakness?
Curtis Nagle: Oh goodness.
Curtis Nagle: It's very much for taking my question.
Curtis Nagle: Just wanted to quickly go back to a premium plus they understand the corridor.
Curtis Nagle: Nothing about the differentiation to justify the tier.
Speaker Change: To broaden our audience.
Speaker Change: What are you I guess envision.
Speaker Change: So it's fair to make it more appealing and then just a quick follow up for renewal just what drove the <unk> weakness was that mostly a mix shift in brand or anything else going on.
Lydiani: Was that mostly a mix shift in brand, or was there anything else going on? Yeah, let me start with that premium plus. There are two dynamics with higher-end tiers that are very interesting for us. The first is that users want more of everything or limited capabilities when they take a higher-end tier. So that's certainly a dynamic that we're really looking at. What drives the most important sort of customer experiences is the number of swipes, super swipes, and highlights. So we really want to expand the set of capabilities that gives customers the confidence that they're getting the best possible set of services from us. The second piece is differentiated experiences, and we believe there are some opportunities for us with AI insights about what might drive higher success for users. We know a lot of our users want to have more information about what's responding with people that are seeing their profile.
Speaker Change: Yeah, Let me start any implies a mid two dynamics with a higher end tiers that are very interesting for us. The first is users watch oh.
Speaker Change: More of everything our unlimited capabilities when they take a higher end here so thats certainly.
Speaker Change: Dynamic that we're really looking at what drives the most important sort of customer experiences is that number of slides superfly highlights. So we really want to expand the set of capabilities that gives customer that confidence that they're getting the best possible set of services from us, but fucking pieces differentiate.
Speaker Change: That experiences and we believe there are some opportunities for us with AI insights about what might drive higher success for users. We know a lot of our users want to have more information about what's resonating with people that are seeing their profile. So that's one category of investments that we're looking at higher defense.
So that's one category of investments that we're looking at higher differentiation for premium plus. And so we're going to be looking at these two streams to ensure that we're creating only this great value across the entire app but certainly a differentiated set of capabilities as well. Yeah, sure. And on the "our people" question, like I said in my prepared remarks, it's largely a function of mixed shift between different geographies that is leading to overall our people being negative.
Speaker Change: You shouldn't or premium plus and so we're going to be looking at these two streams to ensure that we're creating all only there's great value across the entire app, but certainly differentiated set of capabilities as well.
Speaker Change: Yes sure.
Speaker Change: Our people question like I said in my prepared remarks, it's largely a function of mix shift between different geographies that is leading to overall, our people being negative, but like I said.
But, like I said, in the individual market, we continue to be focused on increasing our people. We continue to be doing pricing optimization work. And as we see higher attach rates for existing users from additional offerings, like consumables, you also see our people go up. So that's really what you're seeing reflected in the overall number of employees for Bumble. Our final question today comes from Chris Kunterich with UBS. Your line is open, please go ahead.
Speaker Change: And in individual market, we continue to be focused on increasing our people.
Speaker Change: We continue to be doing pricing optimization work.
Speaker Change: And as we see higher attach rates for existing users from additional offerings like consumables. You also see our people go up so.
Speaker Change: That's really what you're seeing reflected in the overall our people put on black.
Speaker Change: Our final question today comes from Chris <unk> with UBS. Your line is open. Please go ahead.
Chris Kunterich: Great, thanks for taking the question. Just on the reinvestment, the $55 million of restructuring savings, can you just talk a bit about what you would need to see to accelerate the amount that you're reinvesting in the business? Um, yeah, let me unpack the, you know, you know, at a high level, we've talked about reinvestment from a safety data point of view, but let me tell you more specifically what we're going to do there. Our goal is to hire in, as Anoush said, from a capital allocation point of view, we want to really focus on organic growth in the near term, but we're going to be flexible in So we want to really invest in AI innovation. As I mentioned earlier, there are some pilots that we have already started to ensure that we really learn what makes AI humanly exciting for users. We want to invest in AI to help our users be more human and better themselves. We are not building AI just for the sake of AI.
Chris: Great. Thanks for taking the question.
Chris: Just on the reinvestment.
Chris: $10 million.
Chris: <unk> 5 million of restructuring savings can you just talk a bit about what you would need to see to accelerate the amount that you are reinvesting in the business.
Chris:
Speaker Change: Yeah, Let me I'll talk to.
Speaker Change: At a high level, we've talked about reinvestment from a safety data, but let me tell you more specifically on what we're going to do that.
Speaker Change: Our goal is to higher end and so new fabs come out our capital allocation, we want to really focus on organic growth in the near term, but we're gonna be flexible in terms of evaluating talent or technology assets that will accelerate our vision from our data and AI perspective, So we wanted to really invest.
Speaker Change: On AI innovation as I mentioned earlier there are some pilots that we have already started.
Speaker Change: To ensure that we really learn what makes the eye humanly exciting for users. We want we want to invest in the eye to help our users be more human and better themselves. We are not building any occupancy coming out here, so our investments and our pilots I'm very much about fine tuning that.
Lydiani: So our investment and our pilots are very much about fine-tuning that. So if there is the ability to acquire some resources to accelerate that, we certainly will consider that. But to Anoush's point, we want to be super methodical and have a high bar because customer experience is going to be the paramount principle behind any evaluation like that.
Speaker Change: So if there is the ability to aqua hire some resources to accelerate that we certainly will consider that but to a new point, we want to be super methodical and have a high bar because our customer experience is going to be the paramount print.
Speaker Change: Principle behind any evaluation like that the second piece of our reinvestment that I mentioned is accelerating the viability of helping our customers gain value for more than just one of our offerings. So we are focused on building our user platform, that's going to allow us to provide more recommendations.
The second piece of reinvestment that I mentioned is accelerating this ability to help our customers gain value from more than just one of our offerings. So we are focused on building a user platform that's going to allow us to provide more recommendations for what else might be interesting for users to get from Bumble. So if you are on Bumble Date and you go on a date, we may recommend for you to try official, and you are going to carry that experience for you seamlessly. And as we expand into this refocus on Bumble for Friends, that allows us to really bring our customer base seamlessly to Bumble for Friends. So we're really excited about this set of reinvestments. That means hiring great, talented people that have a lot of AI data and safety experience for our teams. And certainly, we'll do that in the fastest possible way. Ladies and gentlemen, this concludes our Q&A and today's Bumble fourth quarter 2023 financial results conference call. We'd like to thank you for your participation. You may now disconnect your line. Shweta Khajuria, Daniel Salmon, Shweta Khajuria, Mark Kelley, Ygal Arounian, Bumble
Speaker Change: For what else might be interesting for you just you get from bundle. So if you are on Bumblebee and you go on that date, we may recommend for you to try official and you were going to carry that experience for U T minimum fleet and as we expand into <unk>.
Speaker Change: Our focus on bubble for funds that allows us to really bring our customer base seamlessly to bumble for brands. So we're really excited about the sort of reinvestment that means hiring great talented people that have a lot of the high data.
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Speaker Change: Okay.
Speaker Change: Ladies and gentlemen, this concludes our Q&A on today's Bumble fourth quarter 2020 financial results Conference call remarks. Thanks for your participation you may now disconnect your lines.
Speaker Change: [music].