Q1 2024 Bumble Inc Earnings Call
So question James Today's event. Please press star followed by one on your telephone keypad.
I would now like to hand over to Cheryl Valensuela.
Cherryl Valenzuela: VP of Investor Relations. The floor is yours. Please go ahead.
Cherryl Valenzuela: Thank you for joining us to discuss <unk> first quarter 2024 financial results with me today are <unk>, Chairman CEO and Andrew Subramanian CFO of bundle.
Cherryl Valenzuela: 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 expectation based on our beliefs assumptions and information currently available to us.
Cherryl Valenzuela: Although we believe these expectations are reasonable we undertake no obligation to revise any statement to reflect changes that occur after this call.
Cherryl Valenzuela: 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.
Cherryl Valenzuela: Our annual report on Form 10-K for the year ended December 31, 2023, and our subsequent periodic filings.
Cherryl Valenzuela: 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.
Cherryl Valenzuela: 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 Dot Bumble dot com and with that I'll turn it over to Luciano <unk>.
Luciano: Thank you Sheryl and good afternoon, everyone. We have had a very productive start to 2020 for bumble is where women make the first move and it continues today as I complete my first hundred days at Bumble CEO.
Luciano: Even more energized by Bumbled unique position to help the world create healthy and equitable connections throughout People's lives focused on women's experiences.
Luciano: Bumble has always been about an arm mission, coupled with our product led approach to meeting customers, where they are mixed bumble more relevant than ever.
Luciano: We kicked off the year with discipline and speed and delivered solid Q1 performance. While also executing on our exciting plans for bumble App <unk>.
Luciano: We launched the first stage of this journey last week.
Luciano: Been very impressed with our team's energy and pace of innovation and Theres a lot more to come over the course of the year I will detail, what's newest bumble app in a moment, but first.
Luciano: Let me recap the financial results.
Luciano: Our first quarter performance was solid across our key metrics.
Luciano: Total revenue in Q1 reached $268 million up 10% year over year, driven by Bumble App revenue up $216 million, which was up 11%.
Luciano: Both bumble and Baidu apps, new paying users year over year and sequentially with Bumble App net adds of 42000 in this quarter based on third party data bundle apps worldwide downloads on an absolute basis, the year over year and sequentially in Q1.
Luciano: Also continued to expand our global downloads sure fueled by international markets in Western Europe, and Latin America.
Luciano: These results combined with continued financial discipline enabled us to deliver a significant improvement in our margin.
Luciano: <unk> EBITDA in Q1 reached $74 million or 28% of revenue. We also returned to 84 million of capital to shareholders throughout our stock repurchase program.
Luciano: Since joining bumble I have prioritized listening to our community, including our Gen Z customer.
Luciano: These conversations confirm a thesis core to bumble that an overwhelming majority of women do you like quality.
Luciano: Our priority and relationship we have also learned that how women defined the quality is evolving women want choice and autonomy and with Gen Z in particular, they want to make a more human connections in their lives whether it's dating on friendship.
Luciano: They want flexibility in how they make their connection.
Luciano: We believe addressing these needs is how we unlock growth in this category and it validates our long term view of where we're taking bundle, including how we think of the role of BFS.
Luciano: All of the feedback we have received from our customers reaffirmed that bumble has a strong foundation in place to deliver on what customers want today.
Luciano: That brings us to our mobile App relaunch last week, where we showcased the first chapter of our extended vision for Bumble and how we're innovating to make our customers feeding experience, even better our refreshed brand identity and new product features are designed to support to Regal.
Luciano: Improve the core experience of our customers.
Luciano: Enhanced Charleston safety and increase our options for monetization, let me touch on each.
Luciano: First we're improving the core user experience starting with opening moves we have expanded upon our signature make the first move by introducing choice and how connections made women can choose to make the first move as always and now they can choose to have a question said that their match.
Luciano: I can respond to creating a new way to engage with connections while retaining control I want to be clear women still make the first move that bumble. They now have additional control over how that happened and we will continue to emphasize that with our customers.
Luciano: In addition to opening moves we launched a suite of new features and improved profile accretion flow to make it easier for customers to get started and increase in the minimum number of required photos to enhance self expression.
Luciano: <unk> two or four you algorithm previously called best Pes accelerate compatible discoveries.
Luciano: And updated our beating intention batches.
Luciano: Our customers better communicate our relationships, they're looking for from casual all the way to Syria.
Luciano: We complemented this richer product experience with a global marketing campaign, we've changed so you don't have to the.
Luciano: The first phase of this campaign showcases how our product updates deliver a better data experience well underscoring. The bumble has always and will always stand for women. We've changed. So you don't have to is underway in 15 markets, including the U S.
Luciano: Robust marketing campaign types multiple channels and actually bundled large college ambassador network and global Influencer marketing.
Luciano: Second we are embracing trust and safety for women and the outlook.
Luciano: This quarter, we advanced photo verification on bundle with significant updates to our own developed computer vision model for liking. This comparison between someone verification photo and profile photos.
Luciano: As a result, we have improved automation rate at both the user and the photo level, while maintaining precision in reducing our manual moderation car.
Luciano: It's important to know that as we continue to innovate trust and safety features will be a big part of future chapters of bundles evolution and it is a key part of prioritizing a healthy ecosystem in our product.
Luciano: Finally, we're expanding monetization with our updated premium subscription tier we continue to have conviction that our subscription tiers are designed to bring value to our customers by offering them the fastest path to finding their match it.
Luciano: And plus it's built on the principle and we increased the value and that's really by updating the feature set personalized insights and better match curation.
Luciano: We see premium plus the valuable future revenue stream and expect to continue to add additional features and optimize pricing for the subscription tier.
Luciano: Beyond premium plus we're continuing to run global pricing optimization and expanding further into existing growth markets in Western Europe, Latam and Asia.
Luciano: Were all the bumble App launch feedback from customers has been tremendously valuable to us we captured the attention of young users who loved our marketing campaign and are taking time to share their thoughts and what they would like to see US do next it's clear that customers Oh Asia when bundle to be the branded they trust to.
Luciano: Really understand and meet their needs.
Luciano: Based on early data from last week, we have seen strong improvements in engagement trends.
Luciano: Including an increase in Chad initiation with almost half of new users adopting opening moves and most importantly, an increasing users getting matches. This has been an encouraging start.
Luciano: Now turning to our other apps, but do delivered positive revenue growth in Q1, we plan to continue building on this momentum with product innovation and targeted marketing campaign aimed at improving brand awareness, especially among women.
Luciano: Our goal is to showcase but do at the App. The built feeling confident enabling its loyal user base to express and either real so in a safe and trusted environment.
Luciano: Our team is also focused on unlocking the significant market opportunity beyond eating we increasingly envision bump will be assessed as an integrated part of how we help our customers a meaningful relationships and love and as I noted earlier that vision is supported by the community feedback we've received as part of the.
Luciano: Bumble App relaunch.
Luciano: Even the loneliness epidemic in society, there's significant demand for our faith based online for more genuine human connection and bumble has the potential to fulfill that need we are actively looking at ways to accelerate the roadmap for bumblebee assessed and will share more in the coming months.
Luciano: As we drive our future roadmap, it's been exciting to see our team's enthusiasm to integrate AI into our offerings in important way.
Luciano: Bumble has incredibly strong data capabilities and technical talent in the company today and since the start of the year, we're more rapidly embracing the advancements of generative AI to accelerate innovation.
Luciano: Because saying on compatibility profile creation experiences better understanding our customers' evolving intent and continuing to lead in trust and safety.
Luciano: We're also targeting the use of generative AI to drive efficiency, both for bumble in for our customers with enhanced customer service is one key example.
Luciano: I also want to speak to our organizational transformation.
Luciano: Made some difficult, but important structural changes to enhance our agility and efficiency and I couldn't be more proud of how our employees have been briefed. The course, we're charging as a company.
Luciano: I'm also excited about the significant senior leadership talent, who have joined us in critical areas, such as product engineering operations and people all of whom bring excellent track Records and high growth Tech company.
Luciano: Argue mutation is moving forward as a performance focused team that brings the collective skills inexperience with needed to execute on our strategy and scale the business.
Luciano: The first four months of this year that with the street that we have come together, well and executing effectively.
Luciano: I'm also grateful for the team for being committed to our mission and values and for rallying around important work, we're doing to champion women not just in our apps, but in society more broadly this quarter. We proudly joined 19 prominent business peers from a range of industry to participate in the <unk>.
Luciano: And if all of the coalition's latest AD campaign in support of reproductive health care.
Luciano: We are also celebrating the introduction of a U S. Federal Bill to fight cyber flashing of calls that we have backed successfully for years a state level.
Luciano: I'm also proud of the bundled support of women athletes who knew what.
Luciano: And it was a joy to watch Cameroon break one of bundled sponsored student athlete is selected in the WNBA draft to play at the elderly Sparks Cameron the entire Bumble team Love to watch and you play and we are cheering for you.
Luciano: Finally, I want to thank our shareholders our partners and above all all of our customers for the trust and support you've given bumble.
Luciano: Been amazing to see what we can accomplish in such a short amount of time I'm filled with gratitude enthusiasm and confidence about where we're going and what we can achieve and with that I'll turn it over to <unk> for details on our financial results and outlook.
Speaker Change: Thank you Ronnie and good afternoon, everyone.
Speaker Change: I'll walk you through our first quarter results and then share more about our outlook for the second quarter and full year 2024.
Speaker Change: Unless stated otherwise all comparisons are on a year over year basis.
Speaker Change: Total bumble ink revenue in Q1 increased 10% to 268 million in line with the high end of our outlook.
Speaker Change: Total paying users increased 16% to 4 million and our people for the quarter was $21 84, then down 4%.
Speaker Change: Revenue from Bumble App increased 11% to 216 million exceeding the high end of our outlook.
Speaker Change: Revenue growth was driven by growth in paying users, which increased 18% to $2 7 million.
Speaker Change: On a sequential basis, we added 42000 paying users slightly above our expectation.
Speaker Change: Bundle apps are people declined 6% to $26 34 thing primarily due to geographic mix shift.
Speaker Change: We continue to see year over year, our people improvement within many of our individual market, including the U S driven by pricing optimization.
Speaker Change: But do happen other revenue grew 7% to 52 million.
Speaker Change: Q1 marks four consecutive quarters of year over year positive revenue growth for Baidu and exciting milestone in the turnaround of this brand.
Speaker Change: But it will happen other paying users grew 13% to $1 3 million and increased 13000 sequentially.
Speaker Change: But do App and other are people declined 1% to $12.35.
Speaker Change: As a reminder, we began including contributions from <unk> and Purdue App and other Kpis in Q4 2023.
Speaker Change: Turning now to expenses.
Speaker Change: Consistent with previous quarters, we remain diligent in our spend across all areas of the business, while continuing to drive revenue growth.
Speaker Change: Total GAAP costs and expenses were 219 million for the quarter down 6% year over year in Q1 net earnings were 34 million compared to a loss of 2 million in the year ago period.
Speaker Change: The decline in cost was largely driven by decrease in stock based compensation expense related to head count reduction, partially offset by one time severance and related charges of $17 million.
Luciano: On a non-GAAP basis, excluding stock based compensation and other noncash or nonrecurring items total costs and expenses were 194 million up 5% Q.
Luciano: Q1, adjusted EBITDA was 74 million, representing a margin of 28% exceeding the high end of our outlook.
Luciano: Cost of revenue was 80 million and grew 15%.
Luciano: As a percentage of revenue cost of revenue was 30% versus 29% in the year ago period in line with our expectation.
Luciano: We expect cost of revenue to remain stable as a percentage of revenue for the rest of the year.
Luciano: Selling and marketing expenses grew 6% to 63 million.
Luciano: This represents 24% of revenue versus 25% in the year ago period.
Luciano: Our spend with lower than anticipated due to timing of certain marketing campaigns that moved from Q1 to Q2 to better align with the bumble app product relaunch.
Luciano: G&A expenses were $28 million or 10% of revenue compared to 32 million or 13% of revenue last year.
Luciano: We continue to drive leverage in this line item as revenues have scaled.
Luciano: Product development expenses were flat year over year at 23 million and 9% of revenue.
Luciano: We ended the quarter with 263 million in cash and cash equivalents.
Luciano: During the first quarter, we repurchased $84 million worth of shares, including 50 million be purchased directly from Blackstone.
Luciano: At the end of Q1, we had 59 million remaining in our authorization and today, we announced that an incremental authorization of 150 million, bringing the total buyback authorized to date to $450 million.
Luciano: We remain committed to our buyback program and we strongly believe that using our capital to buy back shares at current levels. The main is a very good investment.
Luciano: Now moving on to our outlook as we look ahead to Q2 and the rest of the year. They are very excited about the first space of Bumble ops relaunch that we unveiled last week.
Luciano: And actually the only mentioned this is just the beginning of several future chapters to come.
Luciano: Our outlook consistent with expectations, we shared on our prior earnings call.
Luciano: That current trends will continue in Q2 for bumble App and that the benefits of improved trends from DRP launch along with the release of additional feature will re accelerate growth in the second half of 2024.
Luciano: As a result for Q2, we expect total revenue between $269 million and 275 million, representing a year over year growth rate between 4% to 6%.
Luciano: Adjusted for FX had been this represents a year over year growth rate of 6% to 8%.
Luciano: We expect bumble app revenue to be between $218 million, and 222 million, representing a year over year growth rate between five and 7%.
Luciano: Adjusted for FX. This represents a year over year growth rate, 7% to 8% we.
Luciano: We expect bundle up sequential net adds of approximately 70000 to 80000 in Q2.
Luciano: We estimate adjusted EBITDA will be between $69 million and $73 million, representing 26% margin at the midpoint of the range.
Luciano: As previously mentioned, we delayed certain marketing campaign from Q1 to Q2, which will result in additional marketing spend this quarter at.
Luciano: Our expectations for total marketing spend for the year remains unchanged.
Luciano: Full year 2024, we expect total bumble ink revenue growth rate of 8% to 11%.
Luciano: We expect bumble app revenue to grow between 9% to 11% year over year.
Luciano: We maintain our expectation for full year bundle up net adds of approximately 350 to 400000.
Luciano: We note that FX trends have become more unfavorable since our previous outlook and at current level, we expect an incremental headwind to revenue of at least 50 basis points.
Luciano: We also maintain our outlook for adjusted EBITDA margin expansion of at least 300 basis points year over year.
Luciano: This includes the impact of India savings from our workforce reduction, which is expected to conclude in early Q3 in line with our prior expectations.
Luciano: We are on track to realize annualized opex savings of approximately 55 million.
Luciano: We will selectively invest 15 million to drive long term growth.
Luciano: As a reminder, our adjusted EBITDA outlook excludes the impact of expected severance and other one time charges related to our workforce transformation, which is now expected to be between 20, and 22 million slightly below our previous estimate.
Luciano: In closing.
Luciano: The work we have done in Q1 to rightsize, our team strengthen our leadership bench and accelerate our pace of innovation provides us with a strong foundation to further leverage our powerful brand.
Luciano: We believe we are taking the right measure to accelerate our growth and capture the large opportunity in the global market for online dating and human connections more broadly we.
Luciano: We are confident in our path and ability to drive sustainable profitable growth and substantial value for our shareholders.
Speaker Change: With that I'll turn it over to the operator for Q&A.
Speaker Change: 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 one.
Speaker Change: To ask a question. Please ensure your devices on the music luxury.
Speaker Change: Our first question comes from Justin Patterson with Keybanc. Your line is open. Please go ahead.
Miles Christopher Jakubiak: Hi, there. This is most kubiak on for Justin.
Miles Christopher Jakubiak: First on marketing it seems like you guys are talking a little bit more about your college.
Speaker Change: Strategy around.
Speaker Change: Marketing around the relaunch.
Speaker Change: Right.
Speaker Change: Over the last few weeks.
Speaker Change: So just curious roamed.
Speaker Change: You guys its marketing strategy around the relaunch.
Speaker Change: Another measure of performance against that and then on pricing optimizations.
Speaker Change: Curious if you've seen any early impacts from the and if you guys expect that to affect our P grew this year.
Speaker Change: In any direction.
Miles Christopher Jakubiak: <unk>.
Speaker Change: Thank you Myles for the question, let me start with the marketing last week was a big milestone for our company and I'm very proud of our teams for the Bumble App relaunch it was up.
Speaker Change: [noise] moment for us to recapture bumble as a culture defining brand and we certainly experienced that with a response to a very positive response from our customers. We are taking a very broad approach to our marketing strategy not only the out of home digital but also as you mentioned.
Speaker Change: Are engaging with our large ambassador program and colleges as well as our Influencer network. This multichannel approach just gives us enough flexibility to reach our very broad customer base from all ages, but certainly allows us to be more relevant in the conversation for our young younger.
Speaker Change: Users and we certainly achieved that last week, we received a lot of different P back reaction press, our press releases and so much more so we look at a couple of different metrics from a marketing perspective, we look at top of funnel impressions sentiment analysis along.
Speaker Change: With the full funnel ad.
Speaker Change: Transformation, how are customers going from experiencing our apps downloads and so forth.
Speaker Change: And we're pleased with our first week since the relaunch, but most importantly, I am incredibly amazed at the passion that customers expressed for our brand during the launch campaign. It is.
Speaker Change: Not only agree opportunity for light trucks to enter the conversation, but it also allowed us to see that Gen. Z customers are looking for bumble to be the branded that engages with them.
Speaker Change: So if pricing, we look at pricing broadly as well too.
Speaker Change: We have a very early journey is still from a monetization perspective across the company. We feel convicted that our subscription tiers are going to set us up for great growth in our long term as we talked about in our prepared remarks premium plus is our newest subscription a tier introduced <unk>.
Speaker Change: Only a few months ago, and we believe that adding more value differentiation over time will allow us to accelerate future revenue across all of these subscriptions last week, we introduced a couple of important capabilities for premium plus including profile photo analysis.
Speaker Change: Along with more curated matches and improvements are for your algorithm. These improvements are very much focused on helping our customers get their matches the fastest way possible that clear value proposition is really aimed at helping increase conversion and our people who across her tears.
Speaker Change: That's helpful. Thank you.
Speaker Change: Thank you.
Speaker Change: We now turn to Andre Tomorrow with Raymond James Your line is open. Please go ahead.
Speaker Change: Yeah.
Andre Tomorrow: Hi, Thanks for taking my questions on the relaunch again are you've mentioned that occur continuous process and I'm sure. There's plenty more interesting in the pipeline, but what about these specific features if he wants to do may have been the ones that you wanted to lead where they're trying to create that new brand message around.
Speaker Change: Thank you Andrew.
Speaker Change: One important aspect for us is reinvigorating and re affirming to our customers that bundle stands for women make the first move has been our signature product experience and remains the signature experience today.
Speaker Change: Call us to evolve with our customers and based on months of engaging with women and understanding how it quality matters for them not only in in terms of their experience, but also what it means for them today, what does it mean to be an empowered woman today, and we learned that control and autonomy.
Speaker Change: Our key aspects of how women want to feel empowered. So we've expanded our make the first move to give women exactly that more control in how they make the first move and we've received a lot of positive reactions from our customers because they have helped us shape, what that experience really looks like so.
Speaker Change: This first relaunch with really important a first chapter of the evolution that we see are the.
Speaker Change: The pace of innovation of the company and the product over the course of this year, but do we introduced a number of other capabilities as well profile our experienced improvement we enhanced.
Speaker Change: The algorithm for four you broadly we added additional safety capabilities and increased the minimum number of voters. So the customers are self expressing more all of that aimed at helping our customers be successful and our app and that's going to be as you mentioned Andrew just to.
Speaker Change: The beginning of a continual process. This year, we want to have some big movements in the market, where our customers not only get to add value and see the value that we're adding for them finding connections, but that they really understand what differentiates us and set us apart. So I'm excited by the engagement that we're.
Speaker Change: Seeing certainly haven't seen a few key positive engagements in its first week first our customers are engaging in conversations and shot at increased to reach we also have seen half of our new users already adopt opening moves in its first week, which is a great time and most importantly.
Speaker Change: We're really looking to help customers find match and matches have increased since the relaunch all of those are positive signs that we are in the right direction and supporting our customers and re engaging them and making dating a joyful experience again.
Speaker Change: Thank you very helpful detail and maybe if I can squeeze in a quick one on but do not.
Speaker Change: Now we're at a years worth of quarters worth of doing it but it was grown users, but the tone is kind of felt like it's been pretty consistently one of cautious optimism is it safe to say that you know, we finally can say return to corner. There I guess, what does success look like for that business over the near and medium term. Thank you.
Speaker Change: Great question, but two is has a large and very loyal customer base and the product relaunch and marketing targeted marketing campaign has been really aimed at helping users.
Speaker Change: Confidence eating and that message and product capabilities tied to that mission has really been resonating with customers. Our focus is to continue to fine tune the product roadmap based on customer feedback that we really are helping them find.
Speaker Change: Find their matches and enjoy the confidence that they're building, while they're looking for dating we're going to continue to learn from Baidu Baidu has a very international market. The positive thing for us and our company is that we really can take learnings from baidu attitude Gamble take learnings from the <unk>.
Speaker Change: Bumble app relaunch and attitude, but do it with great agility and that allows us to not only expand on our growth in one product and in one region. It allows us to be very strategic in how we think about product capabilities across our entire portfolio and with our international expansion efforts.
Speaker Change: So I love, what they do ads not only again to the customer base that we have but also the learnings that we can have to bring to the bubble.
Speaker Change: Right now.
Speaker Change: <unk> with Citi. Your line is open. Please go ahead.
Citi: Hey, good afternoon, everyone.
Citi: You hit on this a little bit below one of silicon level elaborate on it a little bit more talk about the first chapter in the bubble evolution.
Citi: You mentioned.
Citi: The launch of new products coming out over the course of the year.
Speaker Change: Can you talk about what the bumble evolution.
Speaker Change: Is and.
Speaker Change: But what it means to you what that might mean on product wise and.
Speaker Change: For new and the <unk> guidance at least is there.
Speaker Change: Any expectation of or positive impact or list.
Speaker Change: The app relaunch or is it still too early to think about into Q.
Speaker Change: Great I'll get started on this one.
Speaker Change: I hope.
Speaker Change: The market can see that those last four months as a showcase that we are just operating at a different piece and speed of innovation of the company.
Speaker Change: This gives me a lot of confidence about our future for the rest of the.
Speaker Change: The other thing is that <unk> has a very strong technology platform and has for years used AI to innovate on the product and in safety. We also have a lot of flexibility in our technology infrastructure with a mix of first party infrastructure and cloud that allows us to accelerate.
Speaker Change: The compute capacity so that we can embrace additionally, I capabilities without increasing our costs. All of this to tell you that we have the right tools and the right foundation to accelerate product innovation and I'm personally very excited about what AI more broadly and generative AI world.
Speaker Change: Wow us to do for our customers this year and for US our focus is helping customers find healthy an equitable connection throughout their lives with a focus on women's experience. So there's a few key areas that we are deeply looking at first as a profile experience in creation.
Speaker Change: That allows us to really understand their users and for them to feel proud and inspired to express themselves.
Speaker Change: The second is regularly understand the dynamic of their intent evolution over time as we know when someone starts to dating journey.
Speaker Change: What they are looking for and what their intent might be will evolve as that journey progresses, we want to use AI to be learning in real time, and thirdly, ensuring that with that learning, we can match and brings compatibility to a whole different level of capabilities.
Speaker Change: This is really about helping customers find the meal human connections and be successful in their reach to find love.
Speaker Change: So this year, we're certainly aiming to create some big moments when the markets I'm going to reserve the right to hold in detail because we certainly want to continue to drive a drumbeat that surprises and elevates our customers. The last thing I'll leave you with before passing to mind here is that we are attracting.
The dynamic of their intent evolution over time as we know when someone starts to dating journey, what theyre looking for and what their intent might be will evolve as that journey progresses.
Speaker Change: Exciting caliber of senior leadership from product and technology from the best companies in the tech industry RCP. Our CTO combined are bringing decades of experience on cloud computing AI fire product led growth all of which are setting us up to execute incredibly.
Want to use AI to be learning in real time, and thirdly, ensuring that with that learning, we can match and brings compatibility to a whole different level of capabilities.
This is really about helping customers find real human connections and be successful in their reach to find love.
Speaker Change: Well throughout the rest of the year.
Speaker Change: So with that I will pass to <unk> to speak a little bit about our guidance.
So this year, we're certainly aiming to create some big moments in the market. So I'm going to reserve the right to hold in detail because we certainly want to continue to drive a drumbeat that surprises and elevates our customers. The last thing I'll leave you with before passing China is that we are attracting.
Speaker Change: So specific to your question on Q2, maybe I'll just take a second to elaborate on how we thought about guidance. So if you think about our Q1 performance.
Speaker Change: We feel really good to be largely in line with our expectations.
Speaker Change: And at least if you're off to a good start if you recall some of the comments that we made in fact.
Exciting caliber of senior leadership from product and technology from the best companies in the tech industry RCP. Our CTO combined are bringing decades of experience on cloud computing AI fire product led growth all of which are setting us up to execute incredibly.
Speaker Change: International growth has been very strong for us continues to be a huge area of growth across many markets.
Speaker Change: Download growth share gains you can see all of that and third party data.
Speaker Change: The numbers that we.
<unk> throughout the rest of the year.
Speaker Change: We are seeing internally in the U S.
Speaker Change: But with that I will pass to <unk> to speak a little bit about guidance.
Speaker Change: We did see some slowness in top of the funnel cans as we've called out before.
Hey.
Speaker Change: So specific to your question on Q2, maybe I'll just take a second to elaborate on how we thought about guidance.
Speaker Change: And we definitely are seeing that continue into Q2 as long as we think about Q2 guidance we are assuming that.
Speaker Change: You think about our Q1 performance.
Speaker Change: That these plans effectively will largely continue.
unknown: Feel really good we were largely in line with our expectations.
Speaker Change: Q2, and we are very excited about the relaunch as as we've talked about quite extensively.
Speaker Change: And are pleased that we are off to a good start if you recall.
Speaker Change: The comments that we made in fact.
Speaker Change: But it's still early days and we want to make sure that the teams have some time to innovate on the product and make sure that we continue to make the user experience the best it possibly can be so.
Speaker Change: International growth has been very strong for us continues to be a huge.
Speaker Change: A year of growth across many markets.
Speaker Change: Strong download growth share gains you can see all of that and third party data.
Speaker Change: I would think about this as an.
Speaker Change: The numbers that.
Speaker Change: That acceleration in the second half and Q2 is where we are closely watching the work that we're doing and making tweaks to the product.
Speaker Change: We are seeing internally in the U S. We did see some slowness in top of the funnel hands as we had called out before.
Speaker Change: And we definitely are seeing that continue into Q2 as well. So as we think about Q2 guidance. We are assuming that these trends effectively will largely continue throughout Q2.
Speaker Change: Great. Thanks, maybe just one quick follow up on.
Speaker Change: Maybe I misunderstood, but it sounds like the strategy around DSS and how it fits into the portfolio might.
Speaker Change: Very excited about the relaunch as.
Speaker Change: It might be shifting a little bit can you just expand on that.
Speaker Change: We've talked about quite extensively.
Speaker Change: Thank you.
Speaker Change: It's still early days and we want to make sure that the teams have some time to iterate on the product and make sure that we continue to make the user experience the best it possibly can be so.
Speaker Change: Yeah, absolutely it's a great question.
Speaker Change: Let's talk a little bit about BFS as you have heard in previous.
Speaker Change: Earnings from US before we have long believed the bumble can play a more meaningful role in People's lives beyond eating.
Speaker Change: I would think about this as an.
Speaker Change: An acceleration in the second half and Q2 is where we are closely watching the work that we're doing and making tweaks to the product.
Speaker Change: We have our brand mission and the equity in the market with our customers that really allows us to play a bigger role in different parts of our customers' lives and up to this point, we have been looking at be a fast with an approach to friendship that looks very similar to our current approach to data.
Speaker Change: Great. Thanks, maybe just one quick follow up.
Speaker Change: Maybe I misunderstood, but it sounds like.
Speaker Change: Strategy.
Speaker Change: DSS.
Speaker Change: We're doing them one on one match and our product experience and that has been narrowed to our reach.
Speaker Change: Fits into the portfolio.
Speaker Change: Maybe shifting a little bit can you just expand on that.
Speaker Change: Even though our customers that are using it today, absolutely love it has narrowed the audience for it.
Speaker Change: Thank you.
Speaker Change: Yes, absolutely it's a great question.
Speaker Change: Let's talk a little bit about BFS.
Speaker Change: So we're taking a step back and a fresh look and approach and how do we embrace this opportunity and we see it as a strategic path to also embracing what Gen Z customers are looking for and they have told us.
Speaker Change: You have heard in previous earnings from US before we have long believed that bump will complete a more meaningful role in people's lives beyond eating.
Speaker Change: We have our brand mission and the equity in the market with our customers that really allows us to play a bigger role in different parts of our customers' lives and up to this point, we have been looking at <unk> with an approach to friendship that looks very similar to our current approach to data.
Speaker Change: That's really since last week's launch what we're hearing from our younger users is that they are feeling lonely and disconnected.
Speaker Change: Our goal here is to help our customers find groups of people with similar interests that keep that they can meet in real life to make real human connection. So our vision for friendship is to bring this authentic human connections for our customers throughout their lives.
Speaker Change: We're doing them one to one match and our product experience and that has narrowed our reach even though our customers that are using it today absolutely love It has narrowed the audience for it.
Speaker Change: And last week's App relaunch for Bumble was just a reaffirmation that younger users are looking for bumble to fulfill that need for them. So.
Speaker Change: So we're taking a step back and a fresh look and approach and how do we embrace this opportunity and we see it as a strategic path to also embracing what Gen Z customers are looking for and they have told us.
Speaker Change: So that is a bit more about our approach for PFS and how we will move forward in this part of our customers' journey.
Speaker Change: Actually since last week's launch what we're hearing from our younger users is that they are feeling lonely and disconnected. So our goal here is to help our customers find groups of people with similar interests that they can meet in real life to make real human connections. So our vision.
Speaker Change: Yeah.
Speaker Change: Our next question comes from Nathan <unk> with Morgan Stanley. Your line is open. Please go ahead.
Nathan: Everyone. Thanks for the question into the here what you saw in the testing about the relaunch that helps give you conviction in that back half acceleration.
Speaker Change: For friendship is to bring this authentic human connections for our customers throughout their lives.
Nathan: And is that fully predicated on some of the idiosyncratic improvements youre expecting to be up or are there. Some other factors like the marketing timeline or macro that play a role we should be aware of thank you.
Speaker Change: Last week's App relaunch for Bumble was just to reaffirm mission that younger users are looking for bumble to fulfill that need for that.
Speaker Change: Sure Nathan.
Nathan: Why don't I take that.
Speaker Change: We are.
Speaker Change: So that is a bit more about our approach for PFS and how we will move forward in this.
Speaker Change: Johnny mentioned, we're very excited about that launch that would be Monday of last week.
Speaker Change: And the early data that we're seeing around things like engagement and adoption. After telephone new features has been very promising obviously you know we only it's only been a week since we launched it but we are monitoring the results very costly and as I just said.
Speaker Change: Part of our customers' journey.
Speaker Change: Okay.
Speaker Change: Our next question comes from Nathan <unk> with Morgan Stanley. Your line is open. Please go ahead.
Nathan: Hey, everyone. Thanks for the question into the here what we saw in the testing about the relaunch that helps give you conviction in that back half acceleration.
Speaker Change: We are keeping a close eye on what the user experience it looks likes across various markets. So there's still more work that the team will be doing.
Nathan: And is that fully predicated on some of the idiosyncratic improvements youre expecting to the app or theres. Some other factors like the marketing timeline or macro that play a role we should be aware of thank you.
Speaker Change: Right.
Lady Arnie: As you just heard from Lady Arnie. This is just step one of a series of product changes that would be intended to make and launched through the course of the year and that is going to include additional features.
Speaker Change: Sure Nathan.
Speaker Change: I take back so we are.
Speaker Change: Johnny mentioned, we're very excited about that the relaunch that would be Monday last week.
Lady Arnie: Not just to enhance user experience, but also allow for newer ways off.
Speaker Change: And the early data that we're seeing around things like engagement and adoption of some of our new features has been very promising obviously, we only it's only been a week since we launched it but we are monitoring the results very costly.
Lady Arnie: On boarding people better profile creation, adding more features to our subscription tiers like premium plus if you just obviously, there's a lot more in the works from a product perspective that if to come as we look at the rest of the year.
Speaker Change: As I just said.
Lady Arnie: What's also important to note is that these product moments will also be accompanied by strong brand moments that will allow us to keep bumble are top of mind for our users and that is built into our marketing roadmap for the rest of the other small so there is a lot of work.
Speaker Change: We are keeping a close eye on what the user experience it looks likes across various markets. So there's still more work that the team will be doing but.
Speaker Change: As you just heard from Liana. This is just step one of a series of product changes that we intend to make and launched through the course of the year and that is going to include additional features.
Lady Arnie: Yes, I'm around what is to come that is giving us a lot of confidence about the re acceleration of trends in the second half of the year and as you can imagine there is a lot of work that we're doing around testing. These new product features and the learning some dose and also incorporated into how we are thinking about.
Speaker Change: Not just to enhance user experience, but also allow for newer ways off.
Speaker Change: On boarding people better profile creation, adding more features to our subscription tiers like premium plus as you just heard Linda obviously, there's a lot more in the works from a product perspective that if to come as we look at the rest of the year.
Lady Arnie: We are guiding to so all in I think I would classify this as things are progressing exactly how we want them to be.
Speaker Change: What's also important to note is that these product moments will also be accompanied by strong brand moments that will allow us to keep bumble.
Lady Arnie: And we are feeling excited about the momentum that this creates for us. The one thing I would call out, which I said in my prepared remarks is that.
Speaker Change: Top of mind for our users and that is built into our marketing roadmap for the rest of the year as well. So there is a lot of work.
Lady Arnie: We are seeing FX trends or be more unfavorable since the.
Lady Arnie: Last guided in fact.
Speaker Change: And enthusiasm around what is to come that is giving us a lot of confidence about the re acceleration of trends in the second half of the year and as you can imagine there is a lot of work that we're doing around testing. These new product features and the learnings from doors and also incorporated into how we are thinking about.
Lady Arnie: So we could see.
Lady Arnie: At least 50 basis points of headwind.
Speaker Change: It's great to continue so we just wanted to make sure we call that out.
Speaker Change: Well as we thought about revenue for the rest of the year.
Speaker Change: Okay, Great. That's really helpful. And then one more if I buy it.
Speaker Change: Thinking about the share buybacks in the quarter I guess can you give any more color on your high level buyback strategy of any Cleveland Southern Investor should think of as we move through the year next year. Thank you.
Speaker Change: Where we are guiding to so all in.
Speaker Change: I would classify this as things are progressing exactly how we want them to be.
Speaker Change: And.
Speaker Change: We are feeling excited about the momentum that this creates for us the one thing I would call out, which I said in my prepared remarks is that.
Speaker Change: Sure so.
Speaker Change: Maybe.
Speaker Change: Expand a little bit and just talk more broadly about our capital allocation strategy and.
Speaker Change: We are seeing FX trends be more unfavorable since we.
Speaker Change: Just to remind everyone and we've said this consistently in the past we feel fortunate to be in the position that we're in with a very strong balance sheet.
Speaker Change: Last guided in fab, so we could see.
Speaker Change: At least 50 basis points of headwind.
Speaker Change: We have a lot of free cash flow that we generate every quarter and we have a strong cash position. So that gives us suddenly options in terms of how we think about capital allocation.
Speaker Change: <unk>.
Speaker Change: <unk> continues so we just wanted to make sure we call that out as well as we thought about revenue for the rest of the year.
Speaker Change: Okay, Great. That's really helpful. And then one more if I buy it.
Speaker Change: First and foremost for us.
Speaker Change: First thing in our business is the most important thing for us and we want to do.
Speaker Change: Thinking about the share buybacks in the quarter I guess can you give any more color.
Speaker Change: Investment in top line revenue growth, we want to invest in product capabilities.
Speaker Change: Your high level buyback strategy any cadence that investors should think of as we move through the year next year. Thank you.
Speaker Change: And we want to invest in our talent. So all of that is.
Speaker Change: Sure so.
Speaker Change: Maybe.
Speaker Change: It is the first thing that we're looking to do and it's.
Speaker Change: Expand a little bit and just talk more broadly about our capital allocation strategy and.
Speaker Change: Built into the margin assumptions that we have for the company for the NFL.
Speaker Change: To remind everyone and we've said this consistently in the past we feel fortunate to be in the position that we're in with a very strong balance sheet.
Speaker Change: The second thing that I would highlight as being a priority for us is to look at inorganic growth.
Speaker Change: We have a lot of free cash flow that we generate every quarter and we have a strong cash position. So that gives us suddenly options in terms of how we think about capital allocation are first and foremost for us investing in our business is.
Speaker Change: We want to use M&A as opportunistically as we can to help accelerate the growth vectors that we have on our business.
Speaker Change: As we have new product leadership and tech leadership coming into our business we are.
Speaker Change: Most important thing for us and we want to do.
Speaker Change: Setting, an even higher bar for what M&A looks like and the goals that we have from an inorganic acquisition, but that's definitely something that we.
Speaker Change: Invest in top line revenue growth, we want to invest in product capabilities, and we want to invest in our talent. So.
Speaker Change: Taking a look at and the last thing from a capital allocation perspective that I would point to is obviously our commitment to the buyback program.
Speaker Change: All of that is.
Speaker Change: It's the first thing that we're looking to do and it's.
Speaker Change: Built into the margin assumptions that we have for the company for the year as well.
Speaker Change: Certainly believes that investing in ourselves is a very good use of our cash and that's certainly what you've seen us do.
Speaker Change: Second thing that I would highlight as being a priority for us is to look at inorganic growth.
Speaker Change: Again.
Speaker Change: Hi back perspective, we want to be opportunistic. So we have several levers at our disposal in terms of how we.
Speaker Change: We want to.
Speaker Change: To use M&A as Opportunistically as we can to help accelerate the growth vectors that we have for our business as.
Speaker Change: And deploy the authorization that we have in place and over the course of this past year you've seen us.
Speaker Change: As we have new product leadership and tech leadership coming into our business we are.
Speaker Change: Use multiple strategies in terms of directly buying from the market as well as buying that actually from Blackstone. So.
Speaker Change: Setting, an even higher bar for what M&A looks like and the goals that we have from an inorganic acquisition, but that's definitely something that we are taking a look at and the last thing from a capital allocation perspective that I would point to is obviously our commitment to the buyback program.
Speaker Change: We will continue to be opportunistic in terms of thinking about the best ways to deploy our buyback program as well but.
Speaker Change: Again, we are pleased.
Speaker Change: With the options that we have on.
Speaker Change: We certainly believe that investing in ourselves is a very good use of our cash and that's certainly what you've seen us do.
Speaker Change: On the table.
Speaker Change: We now turn to John Blackledge with TD Cowen. Your line is open. Please go ahead.
Speaker Change: Again from a buyback perspective, we want to be opportunistic.
John Ryan Blackledge: Great. Thanks, two questions on the relaunch do you expect it to add.
Speaker Change: So we have several levers at our disposal in terms of how we.
John Ryan Blackledge: A more of a driver for top of funnel growth and or for their conversion as we kind of get through the year and then on <unk>, just curious how you're using it or planning to use it in the apps for for mobile users and then how youre using it internally across.
Speaker Change: Deploy the authorization that we have in place and over the course of this past year you've seen us.
Speaker Change:
Speaker Change: Use multiple strategies in terms of directly buying from the market as well as buying that actually from Blackstone. So.
Speaker Change: We will continue to be opportunistic in terms of thinking about the best ways to deploy our buyback program as well but.
Speaker Change: And on the water on the internal use just curious any efficiency gains to call out. Thank you.
Speaker Change: Again, we are pleased with the options that we have.
Speaker Change: John you asked a lot of questions. So please remind me if I miss any of them. So let's start with Tom the relaunch.
Speaker Change: On the table.
Speaker Change: Okay.
Speaker Change: Now turning to John Blackledge with TD Cowen. Your line is open. Please go ahead.
Speaker Change: First and foremost.
Tom: Our number one job is to help our customers find connections and all of the women's experience. So we are taking a very customer led approach to how we're innovating in how we're leading sustainable growth chart business. So the metrics that we've been closely watching are the engagement metrics that I mentioned earlier.
John Ryan Blackledge: Great. Thanks, two questions on the relaunched you expected.
John Ryan Blackledge: More of a driver for top of funnel growth <unk> for Eric conversion as we kind of get through the year and then on <unk>, just curious how you're using it or planning to use it in the apps for mobile users and then how youre using it internally across depart.
Tom: Our customers, having health healthy meaningful conversations, yes, we certainly have seen an increase of that.
John Ryan Blackledge: And on the latter on the internal use just curious any efficiency gains to call out. Thank you.
Tom: Our customers embracing opening movies that facilitating enhancing women's experience.
Speaker Change: John you asked a lot of questions. So please remind me if I miss any of them. So let's start with the re launch first.
Speaker Change: We have seen rapid adoption of that and positive feedback from women, who is the target audience for this product update and certainly looking at matching and the increase of mashing. In this first week have been very very positive sign for us.
Speaker Change: First and foremost our number one job is to help our customers find connections and elevate women's experience. So we are taking a very customer led approach to how we're innovating in how we're leading sustainable growth chart business. So the metrics that we've been closely watching are the engagement metric.
Speaker Change: At a high level from our business as you know our core Kpis remain the same we look of paying users on our <unk> because we continue to be the best markers of revenue underneath all of these are these major metrics. There is a number of additional metrics that helps us to really detail near term and long term.
Speaker Change: That I mentioned earlier, our customers, having health healthy meaningful conversations.
Speaker Change: Yes, we certainly have seen an increase of that.
Speaker Change: Our customers embracing opening movies that facilitating enhancing women's experience.
Speaker Change: Health and sustainability of our business. So at a high level. There's three major categories that we look at top of funnel as you mentioned so we certainly look at registration that really gives us quite immediate signal at the health of our launch and marketing campaign. The second is the engagement, which I just mentioned.
Speaker Change: We've seen rapid adoption of that and positive feedback from women, who is the target audience for this product update and certainly looking at matching and the increase of mashing. In this first week have been very very positive sign for us.
Speaker Change: For this release they've been very.
Speaker Change: Clear and a core focus for us because we're really aiming to gain customer lives and then the third is a conversion to payers, which really allow us to understand the effectiveness of our product and our long term are we effectively building value add across a subscription.
Speaker Change: At a high level from our business as you know our core Kpis remain the same we look of paying users on our <unk> because we continue to be the best markers of revenue underneath all of these these major metrics. There is a number of additional metrics that helps us really detail near term and long term.
Speaker Change: Tears is our pricing.
Speaker Change: Health and sustainability of our business, but at a high level. There's three major categories that we look at top of funnel as you mentioned so we certainly look at registration that really gives us quite immediate signal at the health of our launch.
Speaker Change: Being the right pricing across different market. So these three major categories that you know again roll up to our paying users and <unk> allows us to really think about how to prioritize our product and customer efforts as well as our marketing investments to ensure again near term growth and long term growth.
Speaker Change: And marketing campaign, the second is the engagement, which I just mentioned.
Speaker Change: This release they've been very.
Speaker Change: So overall, we feel really good about the start of this of this release. It certainly is it's still just a week in but but it is as the new mentioned just as we expected.
Speaker Change: Clear and a core focus for us because we're really aiming to gain customer loss and then third is the conversion to payers, which really allow us to understand the effectiveness of our product and our long term are we effectively building value add across the subscription.
Speaker Change: Now moving onto generative AI.
Speaker Change: I mentioned a few categories.
Speaker Change: Certainly.
Speaker Change: Excited about not only the infrastructure the talent the data and now the senior leadership that we have across our product and technology teams that really allow us to look at generative AI strategically and we really believe that our job is not to build AI for the sake of the eye.
Speaker Change: Tears is our pricing.
Speaker Change: Being the right pricing or cost of the market. So these three major categories that again roll up to our paying users and <unk> allows us to really think about how to prioritize our product and customer efforts as well as our marketing investments to ensure again near term growth and long term growth.
Speaker Change: Our job is to help our customers be successful in their journey to find connections and what I really believe with generative. The eye is that for experiences like the one I mentioned earlier profile creation that we can make it easier and simpler for customers too.
Speaker Change: So overall, we feel really good about the start of this of this release. It certainly is it's still just a week in but but it is as the new mentioned just as we expected.
Speaker Change: Build beautiful profiles, but giving us easier signals that have less friction for them and with those signals. We can use standard AI models, but also generative AI and conversational experiences and data.
Speaker Change: Now moving onto generative AI.
Speaker Change: I mentioned a few categories.
Speaker Change: Certainly.
Speaker Change: Excited about not only the infrastructure the talent the data in now the senior leadership that we have across our product and technology teams that really allow us to look at generative AI strategically and we really believe that our job is not to build AI for the secrecy.
Speaker Change: Photo analytics that you know China is AI has become so good at to build.
Speaker Change: Profile accretion and evolved our profile as we get more signal in that bidding experience now when I look at the value that we bring to our customers. We have really optimized for matching over the phone for the last several years and our job as we look at generally the eye is to build the premium.
Speaker Change: Our job is to help our customers be successful in their journey to find connection and what I really believe with generative AI is that for experiences like the one I mentioned earlier profile creation that we can make it easier and simpler for customers too.
Speaker Change:
Speaker Change: Dating service level of experience, where we're really taking a closer approach to supporting you in your entire dating journey. So even as we get more signals for our customers. Once they go on that day, we can again automatically augment their profile accretion without them having to go back. So there is.
Speaker Change: Build beautiful profiles, but giving us easier signals that have less friction for them and with those signals. We can use standard AI models, but also generative AI and conversational experiences and data.
Speaker Change: Photo analytics that in regenerative AI has become so good at to build.
Speaker Change: Just a tremendous this is just a tiny bit of an example of something that we're looking at but we believe there is very transformative experiences that we can lean on because there is this technology. So I'm certainly very excited and optimistic.
Speaker Change: Profile accretion and evolved our profile as we get more signal in that bidding experience now when I look at the value that we bring to our customers. We have really optimized for matching over the phone for the last several years and our job as we look at generative AI is to build the premium.
Speaker Change: I think I had one final question, but maybe I think that was it I think I covered John your question, but please let me know if I missed any.
Speaker Change: Dating.
Speaker Change: Dating service level of experience, where we're really taking a closer approach to supporting you in your entire dating journey. So even as we get more signals for our customers. Once they go on that day, we can again automatically augment their profile accretion without them having to go back. So there is.
Speaker Change: And now I'll turn to Cheon Lee with Evercore ISI. Your line is open. Please go ahead.
Speaker Change: Yeah.
Cheon Lee: Great. Thanks for taking the question.
Cheon Lee: So first I have a follow up on the M&A.
Cheon Lee: Opportunities that you mentioned can you just talk through your criteria in pursuing inorganic opportunity is there any demographic geography or use cases that you think are better suited for inorganic growth.
Speaker Change: Just a tremendous this is just a tiny bit of an example of something that we're looking at but we believe there is very transformative experiences that.
Cheon Lee: That's one thing that comes to mind for me is just some you know beyond dating use cases that you already have a couple in your portfolio.
Speaker Change: We can lean on because there is this technology, so I'm certainly very excited and optimistic.
Speaker Change: I think I had one final question, but maybe I think that was it I think I covered John your questions, but please let me know if I missed any.
Speaker Change: Yeah. Thank you for that question I'll start.
Speaker Change: As a technologist at heart.
Speaker Change: I will tell you that our very principled approach that our new mentioned earlier around M&A is that we can deliver seamless experiences for our customers. So we certainly look not only at the business opportunity that an M&A opportunity me bring but we look at how do we.
Speaker Change: And now I'll turn to Cheon Lee with Evercore ISI. Your line is open. Please go ahead.
Speaker Change: Yeah.
Cheon Lee: Great. Thanks for taking the question.
Cheon Lee: So first I have a follow up on the M&A.
Cheon Lee: Opportunities that you mentioned can you just talk through your criteria in pursuing inorganic opportunity is there any demographic geography or use cases that you think are better suited for inorganic growth.
Speaker Change: Great that technology into our portfolio. So that we can create value across our customers' lives. So we look at the.
Cheon Lee: The value out of the innovation just as much as we look at the business. So that is a more principled approach to how we're looking at technology innovation. There is certainly a lot of interesting technology companies across the industry that where we're constantly looking.
Cheon Lee: Yes, one thing that comes to mind for me is just some beyond dating use cases that you already have a couple in your portfolio.
Speaker Change: Yes. Thank you for that question I'll start.
Speaker Change: As a technologist at heart.
Speaker Change: I will tell you that our very principled approach that our new mentioned earlier around M&A is that we can deliver seamless experiences for our customers. So we certainly look not only at the business opportunity that an M&A opportunity me bring but we look at how do we.
Cheon Lee: But our our goal is that we are immediately look at does it actually align and accelerate with her retiree long term mission here and so certainly as you mentioned it is something that we look at regularly and because of our strong financial.
Speaker Change: Great that technology into our portfolio. So that we can create value across our customers' lives. So we look at.
Cheon Lee:
Cheon Lee: Since we are able to use that as a leverage to accelerate growth as we identify any opportunities in the market. So certainly something that we will continue to consider and we will keep you posted as we as.
Speaker Change: The.
Speaker Change: <unk> value out of the innovation just as much as we look at the business. So that is a more principled approach to how we're looking at technology innovation there is certainly.
Cheon Lee: As we get farther.
Speaker Change: A lot of interesting technology companies across the industry that where we're constantly looking at but our our goal is that we immediately look at does it actually align and accelerate with her return long term mission here and so certainly as you mentioned it is something that we.
Cheon Lee: Our next question comes from Benjamin Black with Deutsche Bank. Your line is open. Please go ahead.
Benjamin Thomas Black: Great. Thanks for taking my question.
Cheon Lee: Yes.
Benjamin Thomas Black: Be curious to hear a strategy.
Benjamin Thomas Black: Offering women more options around.
Benjamin Thomas Black: Make the move how that's impacted avian direction, just being on the App, but.
Speaker Change: <unk> regularly and because of our strong financial.
Benjamin Thomas Black: Perhaps.
Benjamin Thomas Black: Had a bigger impact on women or men or maybe has it all changed your brand perception and then go away and then Andrew can.
Speaker Change:
Speaker Change: <unk>, we are able to use that as a leverage to accelerate growth as we identify any opportunities in the market. So certainly something that we will continue to consider and we will keep you posted as we.
Benjamin Thomas Black: Can you just help us think through the balance of the year in terms of bump up here. Net addition trends should the relaunch of immediate sort of impact on typical seasonal trends. Thank you.
Speaker Change: As we get further.
Speaker Change: Our next question comes from Benjamin Black with Deutsche Bank. Your line is open. Please go ahead.
Anuradha B. Subramanian: Yeah, I'll get started and then I'll pass it onto a new Oh I'll be super clear that at Bumble women to make the first to move what we have introduced is added control and how they make that first generic women will still decide who they want on that.
Benjamin Thomas Black: Great. Thanks for taking my question.
Benjamin Thomas Black: Yes, and yes.
Benjamin Thomas Black: Curious to hear a strategy.
Benjamin Thomas Black: Offering women more options around who make the move how thats impacted avian direction just being on the App.
Cheon Lee: With and then they can decide if they want to initiate the conversation or if they are open to the person that they are matching too.
Benjamin Thomas Black: Has that had a bigger impact on women or men maybe has it changed your brand perception and then go away and then Andrew can you just help us think through the balance of the year in terms of bundle up here and net addition trends.
Cheon Lee: We will answer a question that the you know the woman or pet so well we have seen we certainly are again optimizing for women's experience here because women have told us they want more control in how to initiate a conversation and the target audience here are the women have responded incredibly positive.
Andrew: The relaunch of immediate sort of impact on typical seasonal trends. Thank you.
Andrew: Yes, I'll get started and then I'll pass it onto a new.
Cheon Lee: Positively to this expansion of making the first to know.
Andrew: I'll I'll be super clear that at Bumble women to make the first to move what we have introduced is added control and how they make that first generic now.
Cheon Lee: So that's been a really positive sign but this is also been beneficial for men.
Cheon Lee: And that's the great thing is that our belief when we build great experiences for women, we're elevating the experience across our entire ecosystem. So what that has meant is that men. Now can also answer questions as I'm, starting conversation and that has led to.
Speaker Change: Women will still decide who they want to match with and then we can decide if they want to initiate the conversation or if they are open to the person that they are matching to move.
Speaker Change: We will answer a question that the the woman or pet. So while we have seen we certainly are again optimizing for women's experience here because women have told us they want more control in how to initiate a conversation.
Cheon Lee: Higher degree of conversation starting that has more interesting I would start then Ah hey, and so we are really allowing more engaged and healthy discussions, which as I mentioned earlier is leading to more match. So fundamentally this is an evolution of making the first move.
Speaker Change: And the target audience here are the women have responded incredibly positive positively too.
Speaker Change: This expansion of making the first to know.
Cheon Lee: That have shown a really positive early signs as our new mentioned where customer obsessed here. So as we continue to gather more adoption and feedback we will continue to fine tune introduce capabilities as our customers guide us, but so far it's been a really positive start and just have elevation of.
Speaker Change: So that's been a really positive sign but this is also been beneficial for men.
Speaker Change: And Thats the great thing is that our belief when we build great experiences for women, we're elevating the experience across our entire ecosystem. So what that has meant is that men. Now can also answer questions as I'm, starting conversation and that has led to.
Cheon Lee: Our company's commitment to women's experience.
Cheon Lee: And then just on your question about net adds for Bumble App.
Speaker Change: Higher degree of conversation starting that has more interesting, let's start then Ah hey, and so we are really allowing more engaged and healthy discussions, which as I mentioned earlier is leading to more matches. So fundamentally this is an evolution of making the first move.
Cheon Lee: Q2, and he was just trying to say you're guiding to between 70 and 80000.
Cheon Lee: Q3, as you know is seasonally a strong quarter for us as always and we should also see the benefits from it.
Cheon Lee: The work that we're doing with the relaunched come into play. So you will definitely see a step up.
Speaker Change: That has shown a really positive early signs as our new mentioned where customer obsessed here. So as we continue to gather more adoption and feedback we will continue to fine tune introduce capabilities as our customers guide us, but so far it's been a really positive start and just elevation of <unk>.
Cheon Lee: In Q3.
Cheon Lee: Compared to Q2, and then Q4 should also be strong, but again from a seasonal perspective, you should expect Q4 will be lower than Q3.
Cheon Lee: And that should get you to be fully a guy, but we are reiterating our net adds.
Speaker Change: Our company's commitment to women's experience.
Speaker Change: Okay.
Speaker Change: And then just on your question about net adds for Bumble App.
Cheon Lee: Our next question comes from Curtis Nagle with Bank of America. Your line is open. Please go ahead.
Speaker Change: Q2, as you just try to say we are guiding to between 70 and 80000.
Cheon Lee: Sure.
Speaker Change: Q3, as you know is seasonally a strong quarter for us as always and we should also see the benefits of some of the work that we're doing with the relaunched come into play. So you will definitely see a step up in.
Curtis Smyser Nagle: Thanks for taking the question.
Curtis Smyser Nagle: One more on the yoga and that actually was one of them. So I think the bulk of their books undertook just.
Curtis Smyser Nagle: Quick modeling question in terms of.
Curtis Smyser Nagle: Our expectations for the year I know there were a lot of moving pieces for the first quarter netted out to zero, but how.
Speaker Change: In Q3.
Speaker Change: Ah.
Speaker Change: Compared to Q2, and then Q4 should also be strong, but again from a seasonal perspective, you should expect Q4 will be lower than where Q3 will be.
Curtis Smyser Nagle: How should we think about that for the remainder of the year should it be kind of in the high 2000 thirteen's.
Curtis Smyser Nagle: Yes.
Speaker Change: And that should get you to the full year guide that we are reiterating our net adds.
Curtis Smyser Nagle: Okay.
Speaker Change: Yeah. So.
Curtis Smyser Nagle: Q1, we had a to your point.
Curtis Smyser Nagle: Pretty unusual quarter in terms of stock based comp at the biggest driver of that was in addition to the workforce transformation, which obviously resulted in the introduction we also had.
Speaker Change: Our next question comes from Curtis Nagle with Bank of America. Your line is open. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Sure.
Curtis Smyser Nagle: Thanks for taking the question.
Curtis Smyser Nagle: Other employee terminations that led to them.
Curtis Smyser Nagle: One more on the yoga.
Curtis Smyser Nagle: <unk> was one of them. So I think the bulk of their books.
Curtis Smyser Nagle: Almost gabe.
Curtis Smyser Nagle: Non.
Curtis Smyser Nagle: Just.
Curtis Smyser Nagle: Quick modeling question in terms of the.
Curtis Smyser Nagle: Critical stock based comp number for the quarter.
Curtis Smyser Nagle: Our expectations for the year I know there were a lot of moving pieces for the first quarter netted out to zero, but how.
Speaker Change: We should we are in the process of finalizing our workforce transformation. So we will be able to give you better visibility into what the stock based comp trajectory looks like going forward once we get past.
Curtis Smyser Nagle: Should we think about that for the remainder of the year should it be kind of in the high <unk>.
Curtis Smyser Nagle: Yes.
Curtis Smyser Nagle: The framework there.
Speaker Change: The work that we're doing from a head count perspective, but for the full year you should definitely expect that our overall stock based comp levels will be lower than what you've seen.
Speaker Change: Yes, so as you know.
Speaker Change: In Q1, we had a to your point.
Speaker Change: Pretty unusual quarter in terms of stock based comp.
Curtis Smyser Nagle: Historically.
Speaker Change: The biggest driver of that was in addition to the workforce transformation, which obviously resulted in the introduction we also had.
Curtis Smyser Nagle: Our final question comes from Laura Champine with loop capital. Your line is open. Please go ahead.
Speaker Change: Other employee terminations that led to.
Laura Allyson Champine: Thanks for taking my question, it's about the shape of the growth for the year because it seems from the implied guidance that you would see a pretty significant step down in revenue growth. This current quarter and then a bounce back to something closer to your Q1 growth in the back half.
Speaker Change: Almost gabe.
Speaker Change: Non.
Speaker Change: Critical stock based comp number for the quarter.
Speaker Change: We should we are in the process of finalizing our workforce transformation. So we will be able to give you better visibility into what the stock based comp trajectory looks like going forward once we get past.
Curtis Smyser Nagle: For the year still a little unclear on what drives that.
Speaker Change: The work that we're doing from a head count perspective, but for the full year you should definitely expect that our overall stock based comp levels will be lower than what you've seen.
Speaker Change: Sure Laura.
Laura Allyson Champine: I can take that so.
Speaker Change: If you look at the trajectory of <unk>.
Speaker Change: Historically.
Speaker Change:
Laura Allyson Champine: The revenue growth to your point.
Curtis Smyser Nagle: Our final question comes from Laura Champine with loop capital. Your line is open. Please go ahead.
Speaker Change: Q1 for Bumble App was at 11% we are guiding for Q2 to be slightly lower than that.
Laura Allyson Champine: Thanks for taking my question.
Laura Allyson Champine: About the shape of the growth for the year because it seems from the implied guidance that you would see a pretty significant step down in revenue growth. This current quarter and then a bounce back to something closer to your Q1 growth in the back half of the year still a little unclear on.
Laura Allyson Champine: This is in line with the commentary that we gave around the trends that we're seeing.
Laura Allyson Champine: With respect to top of the funnel, especially in the U S. For younger users. So Q2 is a continuation of some of the trends that we saw in Q1.
Laura Allyson Champine: And and that's why we are guiding to as a result of that in the second half of the year. We are anticipating that we will see improvement in trends as a result of the work that we have done.
Laura Allyson Champine: What drives that.
Speaker Change: Sure Laura.
Laura Allyson Champine: I can take that so.
Laura Allyson Champine: If you look at the trajectory of <unk>.
Laura Allyson Champine: In the relaunch, but also from the work that we won't be doing from a product perspective with respect to launching newer features.
Speaker Change: The revenue growth to your point.
Speaker Change: Q1 for Bumble App was at 11% we are guiding for Q2 to be slightly lower than that.
Laura Allyson Champine: Both from a engagement and conversion perspective, but also from a monetization perspective. So you hardly any talk about the future chapters of the bundled roadmap.
Laura Allyson Champine: This is in line with the commentary that we gave around the trends that we're seeing.
Laura Allyson Champine: With respect to top of the funnel, especially in the U S. For younger users. So Q2 is a continuation of some of the trends that we saw in Q1.
Laura Allyson Champine: That is what you know.
Laura Allyson Champine: It gives us confidence about the second half of the year. In addition from a marketing perspective as well.
Laura Allyson Champine: There's a lot of excitement with the relaunch.
Laura Allyson Champine: And that's why we are guiding to as a result of that in the second half of the year. We are anticipating that we will see improvement in trends as a result of the work that we have done.
Laura Allyson Champine: We intend to continue.
Laura Allyson Champine:
Laura Allyson Champine: Amplifying the product work that we're doing with strong brand moments that will again continue to keep bump on top of mind for our users. So all of these things if you put them together.
Laura Allyson Champine: In the relaunch, but also from the work that we won't be doing from a product perspective with respect to launching newer features.
Laura Allyson Champine: Give you the trajectory that you see in terms of the acceleration off the trends in the second half year.
Laura Allyson Champine: Both from a engagement and conversion perspective, but also from a monetization perspective so.
Speaker Change: Ladies and gentlemen, this concludes our Q&A today's conference call, we'd like to thank you for your participation you may now disconnect your lines.
Laura Allyson Champine: Hardly any talk about the future chapters of the bundled roadmap.
Laura Allyson Champine: That is what.
Laura Allyson Champine: <unk> gives us confidence about the second half of the year. In addition from a marketing perspective as well.
Laura Allyson Champine: Built up a lot of excitement with the relaunch.
Laura Allyson Champine: We intend to continue.
Laura Allyson Champine: Amplifying the product work that we're doing with strong brand moments that will again continue to keep bump on top of mind for our users. So all of these things if you put them together.
Laura Allyson Champine: I'll give you the trajectory that you see in terms of re acceleration off the trends in the second half year.
Speaker Change: Ladies and gentlemen, this concludes our Q&A today's conference call, we'd like to thank you for your participation you may now disconnect your lines.
Laura Allyson Champine: [music].
Laura Allyson Champine: Yes.
Laura Allyson Champine: [music].