Q2 2024 Bumble Inc Earnings Call

Elliot: Hello and welcome to the Bumble second quarter 2024 financial results conference call. My name is Elliot and I'll be coordinating your call today.

Operator: and Andrew Results, conference call.

Elliot: My name is Elliot, and I'll be coordinating your call today.

Operator: If you would like to register a question during state's events, please press star, followed by one on your telephone keypad.

Operator: If you would like to register a question during today's event, please press star followed by one on your telephone keypad. I would now like to hand over to Cheryl Valenzuela, Vice President of Investor Relations. Please go ahead.

Elliot: If you would like to register a question during today's event, please press star followed by one on your telephone keypad. I would now like to hand over to Cheryl Valenzuela, Vice President of Investor Relations. Please go ahead.

Cheryl Palenzuela: Now I'd like to hand over to Cheryl Palenzuela, Vice President of Investor Relations. Please go ahead.

Cheryl Palenzuela: Thank you for joining us to discuss Bumble's second quarter, 2024 financial results.

Cheryl Valenzuela: Thank you for joining us to discuss Bumble's second quarter 2024 financial results. With me today are Bumble CEO Lidiane Jones and CFO Anuradha Subramanian.

Speaker Change: Thank you for joining us to discuss Bumble's second quarter 2024 financial results. With me today are Bumble CEO Lidiane Jones and CFO Anuradha Subramanian.

Cheryl Palenzuela: With me today, our Bumble CEO, Lidiane Jones, and CFO, Subramanian. 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.

Anuradha Subramanian: 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.

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

Speaker Change: 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.

Cheryl Palenzuela: 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 end of December 31st, 2023, and our subsequent periodic filings. During the call, we also refer to certain non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results.

Anuradha Subramanian: 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-end December 31, 2023, and our subsequent periodic filings. During the call, we also refer to certain non-GAAP financial measures. These non-GAAP measures should be considered in addition to, and not as a substitute for, or in isolation from, our GAAP results. Reconciliations to 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 Lidiane.

Speaker Change: 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-end December 31, 2023, and our subsequent periodic filings.

Speaker Change: During the call, we also refer to certain non-GAAP financial measures.

Speaker Change: These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results.

Cheryl Palenzuela: Reconciliation to the most profitable gap measures is available in today's earnings press release, which is available on the Investor Relations section or website at ir.bumble.com.

Speaker Change: Reconciliations to 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 Lidiane.

Cheryl Palenzuela: And with that, I'll turn it over to Lidiane. Thank you, Cheryl.

Lidiane Jones: Thank you, Cheryl, and good afternoon, everyone. When I joined Bumble...

Lidiane Jones: In good afternoon, everyone. When I joined Bumble seven months ago, we embarked on the plan to strengthen our foundation to deliver long-term growth and profitability. We added outstanding talent to our team. We set our cost structure, reinforced a culture of excellence, and began to reimagine Bumble App's product to ensure delivering the best and most relevant customer experience to women today. As the first dating app built with women at the center, we continue to believe that when dating is better for women, it is better for everyone. That is scorched Bumble's mission, and will remain our priority.

Lidiane: Thank you, Cheryl, and good afternoon, everyone. When I joined Bumble seven months ago, we embarked on a plan to strengthen our foundation to deliver long-term growth and profitability.

Lidiane Jones: Even months ago, we embarked on a plan to strengthen our foundation to deliver long-term growth and profitability. We added outstanding talent to our team.

Lidiane Jones: We set our cost structure, reinforced a culture of excellence, and began to reimagine Bumble App's product to ensure we're delivering the best and most relevant customer experience to women today. As the first dating app built with women at the center, we continue to believe that when dating is better for women, it is better for everyone. That is Scorch Bumble's mission and will remain our priority. In April, we launched the first chapter of Bumble Apps Evolution, including a refreshed look and feel, improved onboarding and profile creation plans, as well as launched opening moods, which gives women more choice in how conversations get started. This launch was just the first.

Lidiane: We added outstanding talent to our team, we set our cost structure, we enforced a culture of excellence, and began to reimagine BumbleApp's product to ensure we're delivering the best and most relevant customer experience to women today.

Lidiane: As the first dating app built with women at the center, we continue to believe that when dating is better for women, it is better for everyone. That is Scorch Bumble's mission and will remain our priority.

Lidiane Jones: In April, we launched the first chapter of Bumble App's evolution, including a refreshed looking seal, improved onboarding and profile creation funds, as well as launched opening moves, which gives women more choice in how conversations get started. This launch was just the first step and was successful in achieving two important objectives: delivering a better experience for women and improving engagement. We have seen increases in users with high quality profiles, more matches for women, and people voting as a cost genders. These early waves, voice to the type of customer value that drives long-term sustainable growth. This category is vibrant, and we see tremendous opportunities ahead, but it's evident that to reignite the user growth engine for our company in the long term, we need to take a firm stance towards delivering customer value that goes beyond this launch.

Lidiane: In April , we launched the first chapter of Bumble Apps Evolution, including a refreshed look and feel, improved onboarding and profile creation flow, as well as launched Opening Moods, which gives women more choice in how conversations get started.

Lidiane Jones: ?? Earlier this week, our regular leaders gave many constructive feedback on this first students' thoughtfully on this first set of tasks and worked successfully successful in achieving two important important objectives.

Lidiane: This launch was just the first step and was successful in achieving two important objectives.

Lidiane Jones: It was an important objection of the Department's... delivering a better experience for women and improving engagement. We have seen increases in users with high quality profiles, more matches for women, and people voting for us across genders. These early wins point to the type of customer value that drives long-term sustainable growth. This category is vibrant, and we see tremendous opportunities ahead. But it's evident that to reignite the user growth engine for our company in the long term, we need to take a firm stance towards delivering customer value that goes beyond this launch. We're making the difficult but important decision to reset our strategy to deliver durable customer value by addressing two fundamental interconnected challenges.

Lidiane: delivering a better experience for women and improving engagement. We have seen increases in users with high quality profiles, more matches for women, and people voting us across genders.

Lidiane: These early wins point to the type of customer value that drives long-term sustainable growth.

Lidiane: This category is vibrant and we see tremendous opportunities ahead, but it's evident to reignite the user growth engine for our company in the long term, we need to take a firm stance towards delivering customer value that goes beyond this launch.

Lidiane Jones: We're making the difficult but important decision to reset our strategy, to deliver durable customer value by addressing two fundamental interconnected challenges. Edges. First, we need to ensure we're capturing the right balance and mixes of people in our customer ecosystem. This entails correcting demographic imbalances and improving retention by providing our customers more innovative and compelling dating experiences. In second, we monetize more effectively while ensuring a great experience for both our free and paid customers.

Lidiane: We're making the difficult but important decision to reset our strategy to deliver durable customer value by addressing two fundamental interconnected challenges.

Lidiane Jones: First, we need to ensure we're capturing the right balance and mix of people in our customer ecosystem. This entails correcting demographic imbalances and improving retention by providing our customers with more innovative and compelling dating experiences. And second, we need to monetize more effectively while ensuring a great experience for both our free and paid customers. To address these challenges, we have embarked upon a comprehensive plan that will help us achieve our ultimate goal of making Bumble the number one choice for people to find love, friendship, and community around the world. Our plan is focused on three important areas, the ecosystem, the customer experience, and our revenue strategy. Let me detail each one of them.

Lidiane: First, we need to ensure we're capturing the right balance and mix of people in our customer ecosystem.

Lidiane: This entails correcting demographic imbalances and improving retention by providing our customers with more innovative and compelling dating experiences.

Lidiane: And second, we need to monetize more effectively while ensuring a great experience for both our free and paid customers.

Lidiane Jones: To address these challenges, we have embarked upon a comprehensive plan that will help us achieve our ultimate goal of making Bumble the number one choice for people to find love, friendship, and community around the world. Our plan is focused on three important areas: ecosystem, the customer experience, and our revenue strategy.

Lidiane: To address these challenges, we have embarked upon a comprehensive plan that will help us achieve our ultimate goal of making Bumble the number one choice for people who find love, friendship, and community around the world.

Lidiane: Our plan is focused on three important areas, ecosystem, the customer experience, and our revenue strategy.

Lidiane Jones: Let me detail each one of that. Our first area of focus is fostering a vibrant customer ecosystem. Our customers come to our app to meet people, so getting the right balance makes an intent of people in Bumble is fundamental to our success. Strengthening our ecosystem will result in better engagement, improve retention, and ultimately deliver more successful outcomes to our customers. Our product choice is going forward or increasingly favor ecosystem health and engagement on Bumble app. One example is prioritizing more robust profiles for all of our users. We know that creating detailed profiles and adding photos takes time and often causes friction, particularly during onboarding.

Lidiane Jones: Our first area of focus is fostering a vibrant customer ecosystem. Our customers come to our app to meet people, so getting the right balance, mix, and intent of people in Bumble is fundamental to our success. Strengthening our ecosystem will result in better engagement, improved retention, and ultimately, more successful outcomes for our patients. Our product choices going forward will increasingly favor ecosystem health and engagement on Bumble. One example is prioritizing more robust profiles for all of our users.

Lidiane: Let me detail each one of them.

Lidiane: Our first area of focus is fostering a vibrant customer ecosystem.

Lidiane: Our customers come to our app to meet people, so getting the right balance, mix, and intent of people in Bumble is fundamental to our success.

Lidiane: Strengthening our ecosystem will result in better engagement, improved retention, and ultimately deliver more successful outcomes to our customers.

Lidiane: Our product choices going forward will increasingly favor ecosystem health and engagement on Bumble apps.

Lidiane: One example is prioritizing more robust profiles for all of our users.

Lidiane Jones: We know that creating detailed profiles and adding photos takes time and often causes friction, particularly during onboarding. However, we also know that quality profiles facilitate better engagement and greater customer success, particularly for women, which in turn also makes men's experience better. This April launch gave us some evidence of that.

Lidiane: We know that creating detailed profiles and adding photos takes time and often causes friction, particularly during onboarding.

Lidiane Jones: However, we also know that quality profiles facilitate better engagement in greater customer success, particularly for women, which in turn also makes men's experience better. This April launch gave us some evidence of that by raising the bar on minimum requirements for new user profiles and photos. We drove immediate improvements to engagement metrics caused by a better experience and more engaged to users in our ecosystem. While our efforts may turn away some more engagement users in the near term, we believe this will ultimately result in a more authentic and better experience for our users over time. Achieving customer balance also involves updating our marketing playbook so that we can acquire the right users in each market.

Lidiane: However, we also know that quality profiles facilitate better engagement and greater customer success, particularly for women, which in turn also makes men's experience better.

Lidiane Jones: By raising the bar on minimum requirements for new user profiles and photos, we drove immediate improvements in engagement metrics caused by a better experience and more engaged users in our ecosystem. While our efforts may turn away some lower engagement users in the near term, we believe this will ultimately result in a more authentic and better experience for our users over time. Achieving customer balance also involves updating our marketing playbook so that we can acquire the right users in each market.

Lidiane: This April launch gave us some evidence of that. By raising the bar on minimum requirements for new user profiles and photos, we drove immediate improvements to engagement metrics, caused by a better experience and more engaged users in our ecosystem.

Lidiane: While our efforts may turn away some lower engagement users in the near term, we believe this will ultimately result in a more authentic and better experience for our users over time.

Lidiane: Achieving customer balance also involves updating our marketing playbook so that we can acquire the right users in each market.

Lidiane Jones: In mature markets where our brand recognition is strong, our focus will be on experiential. And re-engagement marketing strategies, while in tier two and tier three cities, we will expand our brand and digital marketing campaigns. To better execute on these schools, we're investing on marketing technology and data, including better analytics capabilities to effectively personalize how we reach our customers and optimize the ROI of our spend cost different markets.

Lidiane Jones: In mature markets, where our brand recognition is strong, our focus will be on experiential and re-engagement marketing strategies, while in Tier 2 and Tier 3 cities, we will expand our brand and digital marketing campaign. To better execute on these goals, we're investing in marketing technology and data, including better analytics capabilities to effectively personalize how we reach our customers and optimize the ROI of our spend across different lines. Our second area of focus is customer experience, which begins with continuous product innovation, an area that I'm personally energized by and will be more directly engaged with our product and engineering.

Lidiane: In mature markets, where our brand recognition is strong, our focus will be on experiential and re-engagement marketing strategies, while in Tier 2 and Tier 3 cities, we will expand our brand and digital marketing campaigns.

Speaker Change: To better execute on these goals, we're investing on marketing technology and data, including better analytics capabilities to effectively personalize how we reach our customers and optimize the ROI of our spend across different markets.

Lidiane Jones: Our second area of focus is customer experience, which begins with continuous product innovation, an area that I'm personally energized by. I will be more directly engaged with our product and engineering teams. We are working on the next chapters of the Bumble app's evolution, and through the fall and early winter, we'll be launching several new features, including more options for making opening news, new interest filters, improvements to our core matching algorithm, as well as customization to our chat timer. We will also introduce new AI-driven features, including an AI-assisted photo picker to ease the profile creation process and conversation support that will help our customers gain confidence to be their best selves.

Lidiane: Our second area of focus is customer experience, which begins with continuous product innovation, an area that I'm personally energized by, and will be more directly engaged with our product and engineering teams.

Lidiane Jones: We are working on the next chapters of the Bumble app evolution, and through the fall and early winter, we'll be launching several new features, including more options for making opening moves, new interest filters, improvements to our core matching algorithm, as well as customization to our chat timer. We will also introduce new AI-driven features, including an AI-assisted auto-picker to ease the profile creation process and conversation support that will help our customers gain confidence to be their best selves.

Lidiane: We are working on the next chapters of the Bumble apps evolution.

Lidiane: And through the fall and early winter, we'll be launching several new features, including more options for making opening news, new interest filters, improvements to our core matching algorithm, as well as customization to our chat timer.

Lidiane: We will also introduce new AI-driven features, including an AI-assisted auto-picker to ease the profile creation process, and conversation support that will help our customers gain confidence to be their best selves.

Lidiane Jones: We have an ambitious view of how AI will enhance the value we deliver to our customer at each step of the dating journey, for file creation, discovery, engagement, and the core of our matching models.

Lidiane Jones: We have an ambitious view of how AI will enhance the value we deliver to our customers at each step of the dating journey, including profile creation, discovery, engagement, and the core of our matching model. Another essential part of the customer experience is safety and support. Bumble has a strong foundation for safety, and we're doubling down on safety innovation by expanding our efforts to crack down on bad actors, remove duplicate accounts, and add government ID verification on Bumble apps, actions that may have a short-term impact on MAU but will result in a better and safer user experience.

Speaker Change: We have an ambitious view of how AI will enhance the value we deliver to our customers in each step of the dating journey, profile creation, discovery, engagement, and the core of our matching models.

Lidiane Jones: Another essential part of customer experience is safety and support. Bumble has a strong condition for safety, and we're doubling down on safety and innovation by expanding our efforts to crack down on bad actors, remove duplicate accounts, and add government ID verification on Bumble app, actions that may have a short-term impact on MAU, but will result in better and safer user experiences. We're also optimizing our operations to speed up, support, and safety resolution while improving our accuracy and quality of service. These initiatives are designed to ensure customers know that they are part of an ecosystem committed to safety and healthy connections.

Lidiane: Another essential part of customer experience is safety and support.

Speaker Change: Bumble has a strong foundation for safety.

Lidiane: And we're doubling down on safety innovation by expanding our efforts to crack down on bad actors.

Speaker Change: We move duplicate accounts and add government ID verification on Bumble app, actions that may have a short-term impact on MAU, but will result in better and safer user experiences.

Lidiane Jones: We're also optimizing our operations to speed up support and safety resolution while improving our accuracy and quality of service. These initiatives are designed to ensure customers know that they're part of an ecosystem committed to safety and healthy connections. Our third area of focus is evolving our revenue strategy. We are re-evaluating how we deliver value at every step of our customer's journey, from the top of the funnel to peer conversion, while optimizing for LTV, and over time, will rebalance Bumble subscription tiers and merchandising in favor of mechanisms that reward positive peer behaviors and support better ecosystem health. As part of this process, we'll slow down certain monetization initiatives in the near term, including the expansion of Premium Plus.

Lidiane: We're also optimizing our operations to speed up support and safety resolution while improving our accuracy and quality of service.

Lidiane: These initiatives are designed to ensure customers know that they are part of an ecosystem committed to safety and healthy connections.

Lidiane Jones: Our third area of focus is evolving our revenue strategy. We are re-evaluating how we deliver value at every step of our customer's journey from the top of the funnel to peer conversion while optimizing for LTV. Over time, we'll rebalance Bumble subscription tiers and merchandising in favor of mechanisms that reward positive peer behaviors and support better ecosystem health. As part of this process, we'll slow down certain monetization initiatives in the near term, including the expansion of Premium Plus. Being more deliberate about how we monetize in the near term does not mean that we see less growth opportunities.

Lidiane: Our third area of focus is evolving our revenue strategy.

Speaker Change: We are re-evaluating how we deliver value at every step of our customers' journey, from the top of the funnel to peer conversion, while optimizing for LTV.

Speaker Change: Over time, we'll rebalance Bumble's subscription tiers and merchandising in favor of mechanisms that reward positive peer behaviors and support better ecosystem health.

Lidiane: As part of this process, we'll slow down certain monetization initiatives in the near term, including the expansion of Premium Plus.

Lidiane Jones: Being more deliberate about how we monetize in the near term does not mean that we see less growth opportunity. It means we're treating unsustainable short-term growth in favor of better connecting customer experiences with long-term growth potential. We will also lean on areas of strength and where we see growth opportunities, including Badoo, international expansion, and adjacent opportunities like advertising. While the initiatives I've outlined have been primarily about enhancing the Bumble app, in reality, they extend across our entire portfolio with the goal of building out our offerings to expand our TAM.

Speaker Change: Being more deliberate about how we monetize in the near term does not mean that we see less growth opportunities.

Lidiane Jones: In these, we're treating unsustainable short-term growth in favor of better connecting customer experiences with long-term growth potential. We will also lean on areas of strength and where we see growth opportunities, including Badoo, international expansion, and adjacent opportunities like advertising.

Speaker Change: In these, we're treating unsustainable short-term growth in favor of better connecting customer experiences with long-term growth potential.

Lidiane: We will also lean on areas of strength and where we see growth opportunities, including Badoo, international expansion, and adjacent opportunities like advertising.

Lidiane Jones: While the initiatives of outlined have been primarily about enhancing Bumble app, in reality, they extend across our entire portfolio with the goal of building out our offerings to expand our town. Badoo has provided us with great proof points of how we orient towards customer value is to better outcomes for them. In Q3, we're planning to allow brand updates and a re-architecture of the revenue strategy for Badoo with new subscription tiers that are designed to be more affordable and encourage higher engagement.

Speaker Change: While the initiatives I've outlined have been primarily about enhancing Bumble app, in reality, they extend across our entire portfolio with the goal of building out our offerings to expand our TAM.

Lidiane Jones: Badoo has provided us with great proof points of how reorienting towards customer value leads to better outcomes for them. In Q3, we're planning to roll out brand updates and a re-architecture of the revenue strategy for Badoo with new subscription tiers that are designed to be more affordable and encourage higher-end use. And, as I shared last quarter, Bumble is the connections company, and we remain excited by the potential to expand into apps for non-romantic relationships. In July, we closed the acquisition of Geneva, a group and community app for people to connect based on shared interests.

Speaker Change: Ado has provided us with great proof points of how reorienting towards customer value leads to better outcomes for them.

Speaker Change: In Q3, we're planning to roll out brand updates and a re-architecture of the revenue strategy for Badoo, with new subscription tiers that are designed to be more affordable and encourage higher engagement.

Lidiane Jones: And as I shared last quarter, Bumble is the connections company, and we remain excited by the potential to expand into apps for non-romantic relationships. In July, we closed the acquisition of Geneva, a group and community app for people to connect based on shared interest. Geneva will meaningfully accelerate our opportunity and friendships in community space. And we're working towards launching it more broadly later this fall.

Speaker Change: And as I shared last quarter, Bumble is a connections company, and we remain excited by the potential to expand into apps for non-romantic relationships.

Speaker Change: In July , we closed the acquisition of Geneva, a group and community app for people to connect based on shared interests.

Lidiane Jones: Geneva will meaningfully accelerate our opportunity and friendships and community space, and we're working towards launching it more broadly later this fall. We have more to share in the coming quarters. In closing, our renewed and relentless focus on customers is essential to unlocking further untapped growth in this category. I want to be clear that I do not take lightly the impact our decisions will have on near-term growth, but I have high conviction that this is the right path for Bumble's long-term value creation.

Speaker Change: Geneva will meaningfully accelerate our opportunity and friendships and community space, and we are working towards launching it more broadly later this fall. We have more to share in the coming quarters.

Lidiane Jones: We have more to share in the coming quarters.

Lidiane Jones: In closing, our renewed and relentless focus on customers is essential to unlocking further untapped growth in this category. I want to be clear that I did not take lightly the impact our decisions will have on a near-term growth. But I have high conviction that this is the right path for Bumble's long-term value creation. I came to Bumble to innovate for our customers and help them find successful connections and relationships through our Johnson.

Speaker Change: In closing, our renewed and relentless focus on customers is essential to unlocking further untapped growth in this category.

Speaker Change: I want to be clear that I do not take lightly the impact our decisions will have on the near-term growth, but I have high conviction that this is the right path for Bumble's long-term value creation.

Lidiane Jones: I came to Bumble to interview for our customers and help them find successful connections and relationships through our experience. While we have a lot of work in front of us, I'm energized and confident in our path forward and will keep you informed on our progress along the way. I want to thank the Bumble team for their incredible hard work and dedication. And I want to thank our customers for their trust in us, as well as our partners and investors for their continued support. And with that, let me turn it to Anu.

Speaker Change: I came to Bumble to interview for our customers and help them find successful connections and relationships through our experiences.

Lidiane Jones: While we have a lot of work in front of us, I'm energized and confident in our path forward, and we'll keep you informed on our progress along the way.

Speaker Change: While we have a lot of work in front of us, I'm energized and confident in our path forward, and will keep you informed on our progress along the way.

Lidiane Jones: I want to thank the Bumble team for their incredible hard work and dedication, and I want to thank our customers for their trust in us, as well as our partners and investors for their continued support.

Anur: I want to thank the Bumble team for their incredible hard work and dedication. And I want to thank our customers for their trust in us, as well as our partners and investors for their continued support. And with that, let me turn it to Anu.

Subramanian: And with that, let me turn it to a new one. Thank you, Mediani, and good afternoon, everyone. I'll walk you through our second quarter of the zone, and then share more perspective on our updated 2024 outlook.

Anuradha Subramanian: Thank you, Lidiane, and good afternoon, everyone. I'll walk you through our second quarter results and then share more perspective on our updated 2024 outlook. Unless stated otherwise, all comparisons are on a year-over-year basis. Total Bumble Inc. revenue grew 3% in Q2 to $269 million. FX headwinds totaled $3.4 million through our top line this quarter and impacted our growth rate negatively by approximately 1.5%. Revenue growth was driven by total paying users, which grew 14% to $4.1 million, offset by an 8% decrease in our employees to $21.37. Bumble app revenue grew 5% to $218 million, while Epic said it won with approximately $2.5 million and imparted the growth rate negatively by 1%. Q2 growth was driven by a 15% increase in paying users to 2.8 million.

Anur: Thank you, Lidiane, and good afternoon, everyone. I'll walk you through our second quarter results and then share more perspective on our updated 2024 outlook.

Subramanian: Unmustated, otherwise, all comparisons are on a year-over-year basis. Total Bumble Inc. grew 3% in Q2 to 269 million. FX 10 wins totaled 3.4 million through our co-op line this quarter, and in fact, they're not growth rate negatively by approximately 1.5 percentage points. 70 growth was driven by total 10 users, which grew 14% to 4.1 million, offset by an 8% decrease in our people to $21.37. Bumble app revenue grew 5% to 218 million, and FX 10 wins but approximately 2.5 million, and impacted the growth rate negatively by 1 percentage points. Q2 growth was driven by a 15% increase in paying users to 2.8 million.

Anur: Unless stated otherwise, all comparisons are on a year-over-year basis.

Anur: Total Bumble Inc. revenue grew 3% in Q2 to $269 million.

Speaker Change: FX Headwinds totaled $3.4 million through our top line this quarter and impacted on growth rate negatively by approximately 1.5 percentage points.

Speaker Change: Revenue growth was driven by total paying users, which grew 14% to $4.1 million, offset by an 8% decrease in our people to $21.37.

Speaker Change: bumble happ avenue to five percent to two hundred and eighteen million

Speaker Change: Epic said wins were approximately two and a half million and imparted the growth rate negatively by one percentage point.

Speaker Change: Q2 growth was driven by a 15% increase in paying users to 2.8 million.

Subramanian: On a sequential basis, we reported 87,000 paying user net ads with continued strengths in the national market. The increase in paying users was partially offset by a 9% year-over-year decline in our people, or in the geographic mix shift. Our people continued to grow a year-over-year within many individual markets, including the US.

Anuradha Subramanian: On a sequential basis, we reported 87,000 paying user net ads with continued strength in international markets. The increase in paying users was partially offset by a 90% year-over-year decline in our employees owing to geographic mix shifts. Our people continue to grow year over year within many individual markets, including the U.S. Badoo App and other revenue of $51 million declined 2% year-over-year. FX headwinds were approximately 1 million and impacted growth negatively by approximately 2%. We grew paying users by 12% to 1.3 million, and Q2 net ads were 27,000. However, our revenue declined 7% to $11.93.

Speaker Change: On a sequential basis, we reported 87,000 paying user net ads with continued strength in international markets.

Speaker Change: The increase in paying users was partially offset by a 90% year-over-year decline in RPPUs owing to geographic mix shift.

Speaker Change: Our people continue to grow year over year within many individual markets, including the U.S.

Subramanian: But do happen other revenue of 51 million declined 2% year-over-year. FX 10 wins were approximately 1 million and impacted growth negatively by approximately 2 percentage points. We grew paying users by 12% to 1.3 million, and Q2 net ads worth 27,000. Our people declined 7% to $11.93.

Speaker Change: Badoo App and other revenue of $51 million declined 2% year-over-year. FX headwinds were approximately $1 million and impacted growth negatively by approximately 2 percentage points.

Speaker Change: We grew paying users by 12% to 1.3 million and Q2Net ads were at 27,000.

Subramanian: As a reminder, we began including contributions from growth in Purdue app and other KPIs in Q4 of 2023. Turning now to expenses, we continue to operate with financial discipline, and our second quarter operating expense leverage reflects the cost structure and improvements we implemented earlier this year. Total gap operating costs in expenses were 217 million for the quarter, down 9% year-over-year, and Q2 net earnings was 38 million, some paid the 9 million in the year-to-go period. The decline in cost was largely driven by a decrease in stock base compensation expense related to head count reduction, partially offset by one-time severance and delayed charges of approximately 3 million.

Speaker Change: Our people declined 7% to $11.93.

Anuradha Subramanian: As a reminder, we began including contributions from votes in the Purdue app and other KPIs in Q4 of 2023. Turning now to expenses. We continue to operate with financial discipline, and our second-quarter operating expense leverage reflects the cost structure improvements we implemented earlier this year. Total GAAP operating costs and expenses were $217 million for the quarter, down 9% year-over-year, and Q2 net earnings were $38 million compared to $9 million in the year-over-year period.

Speaker Change: As a reminder, we began including contributions from votes in Purdue app and other KPIs in Q4 of 2023.

Anuradha Subramanian: The decline in costs was largely driven by a decrease in stock-based compensation expense related to headcount reduction, partially offset by one-time severance and related charges of approximately three months. On a non-GAAP basis, excluding stock-based compensation and other non-cash or non-recurring items, total COPS expenses were $194 million, up approximately 1% year-over-year.

Speaker Change: Turning now to expenses, we continue to operate with financial discipline and our second quarter operating expense leverage reflects the cost structure improvements we implemented earlier this year.

Speaker Change: Total GAAP operating costs and expenses were $217 million for the quarter, down 9% year-over-year, and Q2 net earnings were $38 million compared to $9 million in the year-to-go period.

Speaker Change: The decline in costs was largely driven by a decrease in stock-based compensation expense related to headcount reduction, partially offset by one-time severance and related charges of approximately $3 million.

Subramanian: On a non-gap basis, excluding stock base compensation and other non-cash or non-recurring items, total cost in expenses were 194 million, up approximately 1% to get over-year. Q2 adjusted the bidaw of 75 million that presented a margin of 28% and was up some 26% last year.

Speaker Change: On a non-GAAP basis, excluding stock-based compensation and other non-cash or non-recurring items, total COVSID expenses were $194 million, up approximately 1% year-over-year.

Anuradha Subramanian: Q2 adjusted EBITDA of $75 million that presented a margin of 28% and was up some 26% from last year. Cost of revenue was $80 million and grew 6%. As a percentage of revenue, cost of revenue was 30% versus 29% in the year-over-year period, in line with our expectation. Selling and marketing expenses grew 5% to $67 million, representing 25% of revenue. Our spend was lower than anticipated, primarily due to lower marketing around our Bumble brand relaunch campaign. G&A expenses declined 9% to $27 million, or 10% of revenue, compared to $29 million, or 11% of revenue loss. Product development expenses declined 17% to $20 million, representing 7% of revenue.

Speaker Change: Chuthuajesini Bida of $75 million that presented a margin of 28% and was up some 26% last year.

Subramanian: Carter. Cost of revenue was $1,000,000, and grew 6%. As a percentage of revenue, cost of revenue was 30%, versus 29% in the year of old periods, in vying without expectations. Selling and marketing expenses grew 5% to $67,000,000,000; that was ending 25% of revenue. Our spend was lower than anticipated, but merely due to lower marketing around our Bumble Grand Relogge campaign. DNA expenses declined 9%, $27,000,000, or 10% of revenue, compared to $29,000,000,000, or 11% of revenue last year. Product development expenses declined 17% to $20,000,000,000, representing 7% of revenue. Declined and product development expenses were primarily related to reduced employee costs, as a result of our discount action announced in February.

Speaker Change: Cost of revenue was $80 million and grew 6%.

Speaker Change: As a percentage of revenue, cost of revenue was 30% versus 29% in the year-over-year period, in line with our expectations.

Speaker Change: Selling and marketing expenses grew 5% to $67 million, representing 25% of revenue.

Speaker Change: Our spend was lower than anticipated, primarily due to lower marketing around our Bumble brand relaunch campaign.

Speaker Change: G&A expenses declined 9%, to $27 million, or 10% of revenue, compared to $29 million, or 11% of revenue last year.

Speaker Change: Product development expenses declined 17% to $20 million, representing 7% of revenue.

Anuradha Subramanian: The decline in product development expenses was primarily related to reduced employee costs as a result of our let's not actions announced in February. Turning to the balance sheet, we ended the quarter with $287 million in cash and cash equivalents. Since the inception of our repurchase program, we have returned $241 million to shareholders, representing more than 125% of our free cash flow over that time. Year-over-date, our total share rate purchase is $84 million, which represents more than two and a half times our year-over-date free cash flow of $31 million. At the end of Q2, we had $209 million remaining on our $450 million total buyback authorization.

Speaker Change: The client and product development expenses were primarily related to reduced employee costs as a result of our lit-zone actions announced in February .

Subramanian: Turning to the balance sheet, we ended the quarter with $287,000,000 in cash and cash equivalents. Since the inception of our repurchase program, we have returned $241,000,000 to shareholders, representing more than 125% of our free cash flow over that time. Year-to-date, our total charity purchase is $84,000,000,000, which represents more than two-and-a-half times our year-to-date free cash flow of $31,000,000. At the end of Q2, we had $209,000,000 on $450,000,000,000 total buy-back authorization. Our strong balance sheet and profitability gives us the financial flexibility to continue the funding cash to our shareholders. We remain very committed to our buy-back program and continue to believe that buying back shares remains a very good use of our capital.

Speaker Change: Turning to the balance sheet, we ended the quarter with $287 million in cash and cash equivalents.

Speaker Change: Since the inception of our repurchase program, we have returned $241 million to shareholders, representing more than 125% of our free cash flow over that time.

Speaker Change: Year-over-date, our total share rate purchase is $84 million, which represents more than two and a half times our year-over-date free cash flow of $31 million.

Speaker Change: At the end of Q2, we had $209 million remaining on our $450 million total buyback authorization.

Anuradha Subramanian: Our strong balance sheet and profitability give us the financial flexibility to continue returning cash to our shareholders. We remain very committed to our Buy Back program and continue to believe that buying back shares remains a very good use of our capital. Now moving on to our outlook for the rest of the year. We are intentionally resetting our outlook today to reflect the execution of the customer-focused strategy Lidiane just outlined, in the process of strengthening our ecosystem and improving the customer experience. We plan to prioritize product and marketing investments that will improve engagement and ecosystem health, particularly in our more mature markets.

Speaker Change: Our strong balance sheet and profitability gives us the financial flexibility to continue returning cash to our shareholders.

Speaker Change: We remain very committed to our buyback program and continue to believe that buying back shares remains a very good use of our capital.

Subramanian: Moving on to our outlook for the rest of the year, we are intentionally resetting our outlook today to reflect the execution of the customer-focused strategy Mediani just outlined. In the process of strengthening our ecosystem and improving the customer experience, we plan the prioritized product and marketing investment that will improve engagement and ecosystem health, particularly in our more mature markets. This will include expanding our efforts and our safety and improving the mix and intent of customers on our app. In addition, as we align our revenue strategy to deliver broadened customer value across all subscription tiers, we will also slow down certain monetization efforts like Premium Plus that we had originally planned for in the second half of the year.

Speaker Change: Now moving on to our outlook for the rest of the year.

Speaker Change: We are intentionally resetting our outlook today to reflect the execution of the customer-focused strategy Lidiane just outlined.

Lidiane: in the process of strengthening out ecosystem and improving the customer experience we plan to prioritize product and marketing investment that will improve engagement and ecosystem health particularly in our more ricual marketts

Anuradha Subramanian: This will include expanding our efforts around safety and improving the mix and intent of customers on our app. In addition, as we align our revenue strategy to deliver broader customer value across all subscription tiers, we will also slow down certain monetization efforts like Premium Plus that we had originally planned for in the second half of the year. All of these factors, in aggregate, will impact our near-term top-of-funnel user growth and monetization. But we have high confidence that these are the necessary steps for us to reignite user growth, drive sustainable revenue, and capture customer value in the long term.

Lidiane: this will include expanding our efforts and on safety and improving the mix and intent our customers on our app

Lidiane: In addition, as we align our revenue strategy to deliver broader customer value across all subscription tiers, we will also slow down certain monetization efforts like Premium Plus that we had originally planned for in the second half of the year.

Subramanian: All of these factors in aggregate will impact our near-term top-of-final user growth and monetization, but we have high confidence that these are the necessary steps for us to re-emite user growth, drive sustainable revenue, and capture customer value in the long term. We continue to be encouraged by the strength we are seeing in many of our international markets and expect healthy growth to continue in those in the second half. As a result for Q3, we now expect total revenue between 269 million and 275 million, that presenting a year-over-year decline of 1% at the mid-Floyd. Adjusted for the effect said rent, revenue would be smart year over year.

Lidiane: All of these factors in aggregate will impact our near-term top-of-funnel user growth and monetization.

Lidiane: But we have high confidence that these are the necessary steps for us to reignite user growth, drive sustainable revenue, and capture customer value in the long term.

Anuradha Subramanian: We continue to be encouraged by the strength we are seeing in many of our international markets and expect healthy growth to continue in those in the second half. As a result, for Q3, we now expect total revenue between $269 million and $275 million, representing a year-over-year decline of 1% at the mid-term. Adjusted for FX headwinds, revenue will be smarter over the year. We expect Bumble app revenue to be between $217 million and $221 million, also representing a year-over-year decline of 1% at the mid-term.

Lidiane: We continue to be encouraged by the strength we are seeing in many of our international markets and expect healthy growth to continue in those in the second half.

Speaker Change: As a result, for Q3, we now expect total revenue between $269 million and $275 million, representing a year-over-year decline of 1% at the midpoint.

Lidiane: Adjusted for FX headwinds, revenue will be smarter over the year.

Subramanian: We expect Bumble app revenue to be between 217 million and 221 million, also representing a year-over-year decline of 1% at the mid-point. Adjusted for the effect, Bumble app revenue would also be smart year over year. We expect Bumble app sequential net ads of approximately 40,000 to 50,000 in QT. We estimate adjusted EBITDA will be between 77 million and 80 million, representing 29% margin at the mid-point of the range. For fully a 2024, we now expect total Bumble in revenue growth between 1 and 2%. We expect Bumble app revenue growth between 1 and a half to 2 and a half percent, with fully a Bumble app net ads of approximately 275,000 to 285,000.

Lidiane: We expect Bumble app revenue to be between $217 million and $221 million, also representing a year-over-year decline of 1% at the midpoint.

Anuradha Subramanian: Adjusted for FX, Bumble app revenue would also be smart year over year. We expect Bumble app sequential net ads of approximately $40,000 to $50,000 in Q3. We estimate adjusted EBITDA will be between $77 million and $80 million, representing a 29% margin at the midpoint of the rate. For full year 2024, we now expect total Bumble Inc. revenue growth between one and two percent. We expect Bumble app revenue growth between 1.5% to 2.5%, with full-year Bumble app net ads of approximately $275,000 to $285,000. This implies that we expect to see negative net ads in Q4 of this year. Well, this is partly driven by seasonality.

Lidiane: Adjusted for FX, Bumble App Revenue will also be smarter year-over-year.

Lidiane: We expect Bumble app sequential net ads of approximately $40,000 to $50,000 in Q3. We estimate adjusted EBITDA will be between $77 million and $80 million, representing a 29% margin at the midpoint of the range.

Lidiane: For full year 2024, we now expect total Bumble Inc. revenue growth between 1 and 2 percent.

Speaker Change: We expect Bumble app revenue growth between one and a half to two and a half percent, with full year Bumble app net adds of approximately $275,000 to $285,000.

Subramanian: This implies that we expect to see negative net ads in Q4 of this year. While this is partly driven by seasonality, it primarily reflects the actions I just outlined. Going to our revised revenue growth outlook, we now expect full year adjusted EBITDA margin expansion of at least 200 basis points year over year. Our outlook does make the strong operating profitability of our business model, including the benefit of in-ear saving from our workforce reduction. That benefit has largely been realized as of today, but the small incremental portion to come in Q3. We will continue to exercise operational and financial discipline and take an ROI-focused approach to how we invest strategically for Bumble's long-term growth in the critical areas that Lilliani outlined earlier.

Speaker Change: This implies that we expect to see negative net ads in Q4 of this year.

Anuradha Subramanian: It primarily reflects the actions I just outlined. Furthermore, owing to our revised revenue growth outlook, we now expect a fully adjusted EBITDA margin expansion of at least 200 basis points year-over-year. Our outlook reflects the strong operating profitability of our business model, including the benefit of in-year savings from our workforce reduction. That benefit has largely been realized as of today, with a small incremental portion to come in Q3. We will continue to exercise operational and financial discipline and take an ROI-focused approach to how we invest strategically for Bumble's long-term growth in the critical areas that Lidiane outlined earlier.

Lidiane: While this is partly driven by seasonality,

Speaker Change: It primarily reflects the actions I just outlined.

Lidiane: Owing to our revised revenue growth outlook, we now expect full-year adjusted EBITDA margin expansion of at least 200 basis points year-over-year.

Lidiane: Our outlook reflects the strong operating profitability of our business model, including the benefit of in-year savings from our workforce reduction.

Lidiane: That benefit has largely been realized as of today, with a small incremental portion to come in Q3.

Lidiane: We will continue to exercise operational and financial discipline and take an ROI-focused approach to how we invest strategically for Bumble's long-term growth in the critical areas that Lidiane outlined earlier.

Subramanian: In summary, we see tremendous opportunities to Bumble in. We are making intentional choices today to align our strategy, execution, and resources to capture the large, long-term opportunity ahead of us. While the actions we are taking are difficult in the near term, we are in a healthy position financially as we execute, including auditability to drive strong cash flow while turning capital to our shareholder.

Anuradha Subramanian: In summary, we see tremendous opportunity for Bumble Inc. We are making intentional choices today to align our strategy, execution, and resources to capture the large, long-term opportunity ahead of us. While the actions we are taking are difficult in the near term, we are in a healthy position financially as we execute, including our ability to drive strong cash flow while returning capital to our shareholders. And with that, I'll turn it over to the operator for Q&A.

Speaker Change: In summary, we see tremendous opportunity for Bumble Inc. We are making intentional choices today to align our strategy, execution, and resources to capture the large, long-term opportunity ahead of us.

Lidiane: While the actions we are taking are difficult in the near term, we are in a healthy position financially as we execute, including our ability to drive strong cash flow while returning capital to our shareholder.

Operator: And with that, I'll turn it over to the operator for Q&A. Thank you. If you would like to ask a question, please press the ask all about one on your telephone keypad. If you would like to withdraw your question, please press the ask all about two. When preparing to ask your question, please ensure your device is unmuted locally.

Speaker Change: And with that, I'll turn it over to the operator for Q&A.

Operator: 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 locally.

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 two. When preparing to ask your question, please ensure your device is unmuted locally.

Andrew Marok: Our first question comes from Andrew Marock with Raymond James. Your line is open. Please go ahead. Thanks for taking my question.

Operator: Our first question comes from Andrew Marok with Raymond James. Your line is open. Please go ahead.

Speaker Change: Our first question comes from Andrew Marok with Raymond James. Your line is open, please go ahead.

Andrew Marok: Hi, thanks for taking my question. Maybe one on the two key results first, and then one on the guide. So given that your comments were that RPPU is growing within many of your individual markets, with the overall RPPU decline driven largely by the geo mix shift, should we infer from that a decline in US paying users? Or can you help us provide any guardrails around the US versus international paying user or MAU dynamics?

Unnamed Speaker: Maybe one on the two key results first and then one on the guide. So given that your comments were that RPP who is growing within many of your individual markets, with the overall RPP who decline driven largely by the geomix shift, should we infer from that a decline in U.S. paying users? Or can you help us provide any guardrails around the U.S. versus international paying user or M.A.U. dynamic?

Andrew Mark: Hi, thanks for taking my question. Maybe one on the 2Q results first and then one on the guide. So given that your comments were that our PIPU is growing within many of your individual markets,

Speaker Change: With the overall ARPIPU decline driven largely by the geo-mix shift, should we infer from that a decline in U.S. paying users, or can you help us provide any guardrails around the U.S. versus international paying user or MAU dynamic?

Anuradha Subramanian: Hi Andrew. This is Anuradha. I'll take that.

Unnamed Speaker: Hi, Andrew.

Unnamed Speaker: This is a note. Take that. Yes, I think, as we mentioned on the call, we are seeing overall RPP would decline for Bumble app. While individually in each of the markets, including the U.S., we are seeing our people increase the weight, the weightage of the U.S. versus international markets is having an impact on overall RPP. who we are seeing some pressure on U.S. top of the funnel metrics and that is flowing through to the pressure that we are seeing on U.S. payers as well.

Speaker Change: Hi Andrew, this is Anuradha, I'll take that. Yes, I think as we mentioned on the call,

Speaker Change: We are seeing, overall, our people decline for Bumble app. While individually in each of the markets, including the U.S., we are seeing our people increase.

Anuradha Subramanian: Yes, I think, as we mentioned on the call, we are seeing overall our PIPU decline for Bumble. While individually in each of the markets, including the U.S., we are seeing our PIPU increase, the weightage of the U.S. versus international markets is having an impact on overall PIPU. We are seeing some pressure on U.S. top-of-the-funnel metrics, and that is flowing through to the pressure that we are seeing on U.S. payers as well. And a lot of the actions that we are outlining today are effectively meant to really be focused on our more mature markets, especially the U.S.

Speaker Change: The weightage of the U.S. versus international markets is having an impact on overall RPP. We are seeing some pressure on U.S. top-of-the-funnel metrics, and that is flowing through to the pressure that we are seeing on U.S. payers as well.

Andrew Marok: And a lot of the actions that we are outlining today are effectively meant to really be focused on or more mature markets, especially the U.S. Okay, thanks for the color there.

Speaker Change: And a lot of the actions that we are outlining today are effectively meant to really be focused on more mature markets, especially the U.S.

Lidiane Jones: Okay, thanks for the color there. And then maybe one on the product roadmap in the context of the guide. I'm sure the roadmap includes some things that are likely to be more impactful than others in terms of the UX and revenue trajectory. I guess, can you provide any further clarity on maybe timing for some of the more impactful moves, or just a sense of what groundwork needs to be laid in place product-wise before you start to turn on some of the more impactful features? Thank you.

Andrew Marok: And then maybe one on the product roadmap and the context of the guide. I'm sure the roadmap includes some things that are likely to be more impactful than others in terms of UX and revenue trajectory. I guess can you provide any further clarity on maybe timing for some of the more impactful moves or just a sense of what groundwork needs to be laid in place product wise before you start to turn on some of the more impactful features.

Speaker Change: Okay, thanks for the color there. And then maybe one on the product roadmap in the context of the guide. I'm sure the roadmap includes some things that are likely to be more impactful than others in terms of UX and revenue trajectory. I guess, can you provide any further clarity on maybe timing for some of the more impactful moves, or just a sense of what groundwork needs to be laid in place product-wise before you start to turn on some of the more impactful features? Thank you.

Unnamed Speaker: Thank you.

Unnamed Speaker: Thank you, Andrew.

Lidiane Jones: Thank you, Andrew. As we are aligned on this strategy today, we're unveiling a customer-centric strategy to really set us up for reiniting growth in the long term. What this means from a product perspective is that we're really optimizing for engagement. As you have heard, from our April launch, we saw that improving the customer experience, especially women's experience, drove engagement, which takes longer to realize itself. That's the set of principles behind the releases and the features that you heard today.

Unnamed Speaker: As we outlined on this strategy today, we're unveiling a customer centric strategy to really set us up for reigniting growth in a long term. What this means from a product perspective is that we really optimizing for engagement, as you have heard from our April launch. We saw that improving the customer experience, especially women's experience, drove engagement, which takes longer to realize itself. And that's the set of principles behind the releases and the features that you heard today. We are planning to release a series of capabilities, expansion of opening moves, expansion of intentions that will allow us to better align the experience of our customers and balance the ecosystem in mature markets as a new just called out.

Speaker Change: Thank you, Andrew. As we are aligned on this strategy today, we are unveiling a customer-centric strategy to really set us up for reigniting growth in the long term.

Speaker Change: What this means from a product perspective is that we're really optimizing for engagement. As you have heard from our April launch, we saw that improving the customer experience, especially the women's experience,

Speaker Change: drove engagement, which takes longer to realize itself. And that's the set of principles behind the releases and the features that you heard today. We are planning to release a series of capabilities, expansion of opening moves.

Lidiane Jones: We are planning to release a series of capabilities, expansion of opening moves, and intentions that will allow us to better align the experience of our customers and balance the ecosystem in mature markets, as Anu just called out. We do believe that these actions will improve the overall experience and retention of our customers, but it will take multiple quarters for us to start realizing the top of the funnel strength that we believe these capabilities will offer.

Anur: This is an expansion of intentions that will allow us to better align the experience of our customers and balance the ecosystem in mature markets, as Anu just called out.

Unnamed Speaker: We do believe that these actions will improve the overall experience and retention of our customers, but it will take multiple quarters for us to start realizing a type of funnel strength that we believe these capabilities will offer. We also, as you heard today, are really, really focused on ensuring the quality of engagement and the intention of engagement of our users are there for all of our major markets. This is meant that what we started in the first chapter of Bumble in April and raising the bar for profile and quality of profile in our products is going to expand with our AI photo picker for profile so that we can make more users look great on our platform and get the same level of engagement that we think will help drive overall growth and success of our metrics.

Anur: We do believe that these actions will improve the overall experience and retention of our customers, but it will take multiple quarters for us to start realizing a top-of-funnel strength that we believe these capabilities will offer.

Lidiane Jones: We also, as you heard today, are really, really focused on ensuring the quality of engagement and the intention of engagement of our users are there for all of our major markets. This means that what we started in the first chapter of Bumble in April, in raising the bar for profile and quality of profiles in our product, is going to expand with our AI photo taker for profiles so that we can make more users look great on our platform and get the same level of engagement that we think will help drive overall growth and success of our. So the foundation of what we're delivering is great engagement, great profile creation, and increasing the experience bar in safety for What we'll see is great, you know, customer focus from us. That's really what the strategy is about.

Speaker Change: We also, as you heard today, are really, really focused on ensuring the quality of engagement and the intention of engagement of our users are there for all of our major markets.

Speaker Change: This has meant that what we started in the first chapter of Bumble in April in raising the bar for profile and quality of profiles in our product is going to expand with our AI photo taker for profiles so that we can make more users feel like they are part of

Speaker Change: look great on our platform and get the same level of engagement that we think will help drive overall growth and success of our metrics.

Unnamed Speaker: So the foundation of what we're delivering is great engagement, great profile creation, and increasing the experience bar in safety for women, which will internal from makes experience great for men.

Speaker Change: So, the foundation of what we're delivering is...

Speaker Change: Great engagement.

Speaker Change: Great profile creation and increasing the experience bar in safety for women, which will in turn also make the experience great for men.

Unnamed Speaker: What we will see is great customer focus from us; that's really what the strategy is about, and we will start aligning our revenue model to that and see the revenue improvement over quarters.

Speaker Change: What we'll see is great customer focus from us, that's really what the strategy is about, and we will start aligning our revenue model to that and see revenue improvement over quarters.

Cory Carpenter: We now turn to Corey Carpenter with JP Morgan. Your line is open; please go ahead. Great, thanks for the questions. I had two on Bumble app as well.

Operator: We now turn to Cory Carpenter with J.P. Morgan. Your line is open, please go ahead. Great, thanks for the questions.

Operator: And we will start aligning our revenue model to that and see revenue improvement over time. We now turn to Cory Carpenter with J.P. Morgan. Your line is open, please go ahead. Great, thanks for the questions.

Speaker Change: We now turn to Cory Carpenter with J.P. Morgan. Your line is open, please go ahead.

Operator: I had two on BumbleOp as well.

Cory Carpenter: Great, thanks for the questions. I had two on BumbleOp as well. Maybe, Lidiane, for you, could you talk about just

Cory Carpenter: Maybe Lidianne for you, could you talk about just at a high level what you saw with the initial app relaunch that made you decide now is the right time to make the pivot and reset the roadmap going forward. And then I was hoping you could expand a bit. You talked about monetization mechanisms save that reward positive user behavior. What do you mean by that, and what could that look like? Thank you. Yeah, great question, Cory. Thank you. So we certainly, you know, if we stop back a little bit, this strategy isn't just about this past quarter.

Cory Carpenter: At a high level, what you saw with the initial Acme launch that made you decide now is the right time to make the pivot and reset the roadmap going forward. And then I was just hoping you could expand a bit. You talked about monetization mechanisms that reward positive user behavior. What do you mean by that and what could that look like?

Lidiane Jones: Yeah, a great question, Cory. Thank you.

Speaker Change: Thank you.

Speaker Change: Yeah, great question, Cory. Thank you. So what we certainly, you know, if we step back a little bit, this strategy isn't just about this past quarter. It is a combination of factors that's laid out on the areas of our plan.

Unnamed Speaker: It is a combination of factors that's laid out on the areas of our plan. If you look at the top of funnel of softness that we've talked about, this has been talked about from Bumble over several quarters in the last few quarters. We have seen the study of the pressure in our results. And what we saw from our April launch is that the engagement has immediately, you know, improving our customer experience, improving engagement. But it does; it doesn't simply immediately in revenue growth. In the past, sometimes the consumable will drive an immediate revenue, but doesn't sustain those users.

Speaker Change: If you look at the top of funnel softness that we've talked about, this has been talked about from Bumble over several quarters in the last few quarters.

Lidiane Jones: So, you know, if we step back a little bit, this strategy isn't just about this past quarter; it is a combination of factors that are laid out in the areas of our plan. If you look at the top of the funnel softness that we've talked about, this has been talked about from Bumble over several quarters, in the last few quarters, we have seen steady pressure in our results. And what we saw from our April launch is that engagement has immediately improved our customer experience, improved engagement. But it doesn't translate immediately into revenue growth. In the past, sometimes a consumable will drive immediate revenue but doesn't sustain those users.

Speaker Change: We have seen the steady pressure in our results.

Speaker Change: And what we saw from our April launch is that

Speaker Change: The engagement has immediately, you know, improving our customer experience, improved engagement, but it doesn't translate immediately in revenue growth.

Speaker Change: In the past, sometimes a consumable will drive

Unnamed Speaker: And so what we're really shifting is towards prioritizing product experiences that are going to drive long-term sustainable revenue growth. And so what we are focused on is ensuring that the differentiation of what why people choose to come to Bumble, which is women's experience, it's a safe, healthy platform for our users, is undeniably the best one in the market. And so a lot of what you're going to see in our product roadmap is very focused on this differentiation, along also with helping our customers be successful. You know, people come here to meet great people, so we want to have our health ecosystem balanced and innovate in our products to help our customers stay here and improve the top of funnel, which is ultimately our goal.

Speaker Change: a immediate revenue but doesn't sustain those users and so what we're really shifting is

Operator: And so what we're really shifting is towards prioritizing product experiences that are going to drive long-term sustainable revenue growth. And so, what we are focused on is ensuring that the differentiation of why people choose to come to Bumble, which is the women's experience, it's a safe, healthy platform for our users, is undeniably the best one in the market. And so a lot of what you're going to see on our product roadmap is very focused on this differentiation, along also with helping our customers be successful.

Speaker Change: towards prioritizing product experiences that are going to drive long-term sustainable revenue growth.

Speaker Change: And so, what we are focused on is ensuring that the differentiation of why people choose to come to Bumble, which is women's experience, it's a safe, healthy platform for our users, is... ... ... ... ... ...

Speaker Change: on undeniably the best one in the market.

Speaker Change: And so a lot of what you're going to see in our product road map is very focused on this differentiation, along also with helping our customers be successful. You know, people come here to meet great people, so we want to have our healthy ecosystem balanced.

Speaker Change: and Innovate in our products to help our customers stay here and improve the top of funnel, which is ultimately our goal.

John Blackledge: We now turn to John Blackledge with TD Cohen. Your line is open; please go ahead. Great. Thanks. Two questions. You mentioned sales and marketing, so maybe some changes there. So, with the reset, should we expect an increase in sales and marketing in the back half of the year as part of the reset and perhaps to drive top of funnel? And then second question, you also mentioned slowing down the Premium Plus rollout. Could you give the rationale for this strategic change? Thank you.

Operator: We now turn to John Blackledge with T.D. Cohen. Your line is open; please go ahead.

Operator: You know, people come here to meet great people. So we want to have our healthy ecosystem balanced and innovate in our products to help our customers stay here and improve the top of the funnel, which is ultimately our goal. We now turn to John Blackledge with T. D. Cohen. Your line is open. Please go ahead. Great, thanks. Two questions.

Speaker Change: We now turn to John Blackledge with T.D. Cohen. Your line is open, please go ahead.

Speaker Change: Great, thanks. Two questions. You mentioned sales and marketing, so maybe some changes there.

John Blackledge: With the reset, should we expect an increase in sales and marketing in the back half of the year?

Speaker Change: as part of as part of the reset and perhaps to drivetop of funnel and then second question you also mentioned flowing down the premium plus rollout could you give the rationale for this strategic change thank you

Unnamed Speaker: Yeah, let me start, Josh. On the marketing side, we, as you heard from a new, we're operating with a lot of discipline. We believe we have the right allocation of dollars. What we're really focused on is how do we really optimize for LTV, and we are being more tailored about our go-to-market strategies based on the level of maturity of the market. So the markets where we have greater penetration, we're very, very focused on attracting users that are already aware of our brand, but we're really denying reengagement, where our strategies for emerging markets are very different and digital in performance marketing and very effective.

Lidiane Jones: Yeah, let me start, Josh. On the marketing side, as you heard from Anu, we're operating with a lot of discipline; we believe we have the right allocation of dollars. What we're really focused on is how we really optimize for LTV, and we are being more tailored in our go-to-market strategies based on the level of maturity of the market. So in the markets where we have greater penetration, we're very, very focused on attracting users that are already aware of our brand, but we're reigniting re-engagement, where our strategies for emerging markets are very different, and digital and performance marketing are very effective. So it's really about optimizing and tailoring our marketing strategy for each market. I think that's going to certainly drive an improvement in the performance of our investments, and that's our focus.

Speaker Change: Yeah, let me start, Josh. On the marketing side,

Speaker Change: We, as you heard from Anu, we are operating with a lot of discipline. We believe we have the right allocation of dollars. What we're really focused on is how do we really optimize for LTV, and we are being more tailored about our go-to-market strategies based on the level of maturity of the market. So the markets where we have greater penetration, we're very, very focused on attracting users that are already aware of our brand, but we're reigniting re-engagement, where our strategies for emerging markets

Unnamed Speaker: So it's really about optimizing and tailoring our marketing strategy for markets. I think that's going to certainly drive an improvement to the performance of our investments, and that's our focus.

Speaker Change: are very different and digital in performance marketing are very effective so it's really about optimizing and tailoring our marketing strategy for for markets i think that's going to certainly drive on the improvement

Lidiane Jones: In terms of Premium Plus, I want to clarify that we're just maintaining Premium Plus as it is today; we're not changing it. What we're doing is really rebalancing the value of our subscription. We believe that before we overinvest in creating additional value for Premium Plus, it's really important that we land the free experience being a great one and ensure that we have great value clarity across each one of our subscription tiers.

Unnamed Speaker: In terms of Premium Plus, I want to clarify that we're just maintaining Premium Plus as it is today. We're not changing it. What we are doing is really rebalancing the value of our subscription. and we believe that before we over invest in creating additional values for premium plus, that it's really important that we land the free experience being a great one, and ensuring that we have a great value clarity across each one of our subscription tiers. That will, in turn, improve the top of funnel, which helps every single metric. It improves payer, spare conversion, and RP pool over time.

John Blackledge: to the performance of our investments and that's that's our focus. In terms of Premium Plus, I want to clarify that we are just maintaining Premium Plus as it is today. We're not changing it. What we are doing is really rebalancing the value of our subscriptions.

John Blackledge: We believe that before we overinvest in creating additional value for Premium Plus, that it's really important that we land the free experience being a great one and ensuring that we have a great value clarity across each one of our subscription tiers.

Lidiane Jones: That will, in turn, improve the top-up funnel, which helps every single metric. It improves payers, payer conversion, and the RP pool over time. It's about rebalancing. We're maintaining Premium Plus in the market as it is, and our focus really is aligning the subscription tiers and value as we add more product capabilities in the next few quarters. And John, just to...

John Blackledge: That will in turn improve the top-up funnel, which helps every single metric. It improves payers, payer conversion, and RPP over time. So it's about rebalancing. We're maintaining Premium Plus in the market as it is, and our focus really is aligning subscription tiers and value as we add more product capabilities in the next few quarters.

Unnamed Speaker: So it's about we balancing, we're maintaining Premium Plus in the market as it is, and our focus really is aligning the subscription tiers and value as we add more product capabilities in the next few quarters. And John, just to follow up on the sales and marketing question, from a dollar perspective, we feel pretty good about the dollars that we have allocated for the second half. And as a percentage of revenue, you'll actually see Q3, I think we'll spend a little bit less than what we spent in Q2, but in Q4, we do intend to take up marketing as a percentage of spend up again.

Lidiane Jones: And John, just to follow up on the sales and marketing question, from a dollar perspective, we feel Pretty good about the dollars that we have allocated for the second half, and as a percentage of revenue, you'll actually see Q3, I think we'll spend a little bit less than what we spent in Q2, but in Q4, we do intend to take up marketing as a percentage of spend up again, and to Lidiane's earlier point about making sure that we have the right strategies in terms of how to go to market, I think that's really going to be our focus, versus just spending more to get more users.

John Blackledge: And John , just to follow up on the sales and marketing question, from a dollar perspective, you know, we feel...

John Blackledge: pretty good about the dollars that we have allocated for the second half and as a percentage of revenue you'll actually

John Blackledge: seek

John Blackledge: Q3 I think we'll spend a little bit less than what we spent in Q2, but in Q4 we do intend to take up marketing as a percentage of spend up again, and to Lidiane's earlier point about making sure that we have the right strategies in terms of how to go to market, I think that's really going to be our focus, versus just spending more to get more users.

Unnamed Speaker: And to Leanne's earlier point about making sure that we have the right strategies in terms of how to go to market. I think that's really going to be our focus versus just spending more to get more users.

Unnamed Speaker: Thank you.

E. Galerunian: Our next question comes from E. Galerunian with City Group. Your line is open. Please go ahead. Hey, good afternoon. I want to go back to the first point on three important areas. Talk about Lidianian getting the right balance in the customer ecosystem. You guys historically talked about your ecosystem was healthier, you know, lean more towards women and your focus on the women's experience has made a healthier ecosystem. And it feels like that maybe has changed or something in the way you look at it has changed, and that's leading to some of the, you know, the product enhancements or changes you're making here.

Anuradha Subramanian: Our next question comes from Ygal Arounian with Citigroup. Your line is open, please go ahead.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Ygal Arounian with Citigroup. Your line is open, please go ahead.

Operator: Hey, good afternoon. I want to go back to the first point on three important areas, talk about Lidiane, and get the right balance in the customer ecosystem. You guys historically talked about your ecosystem being healthier, you know, leans more towards women, and your focus on the women's experience has made a healthier ecosystem. But it feels like that maybe has changed, or something in the way you look at it has changed. And that's leading to some of the product enhancements or changes you're making here, is that the case? And can you talk about that ecosystem and how it's evolved and where it is at right now?

Ygal Arounian: Hey, good afternoon. I want to go back to the first point.

Speaker Change: on three important areas, talked about Lidiane and getting the right balance.

Speaker Change: in the customer ecosystem. You guys historically talked about your ecosystem was healthier, leans more towards women and.

Speaker Change: The focus on the women's experience has made a healthier ecosystem and it feels like that maybe has changed or something in the way you look at it has changed and that's leading to some of the

Unnamed Speaker: Is that the case, and can you talk about that ecosystem and how it's evolved and where it's at right now? Yeah, great question. So let me unpack ecosystem a little bit. One continues to be the best platform for women, and it has been a great source of advantage for us. But as we scale the business, now we are a billion-dollar business in several markets. There has been a slight imbalance that has been created, and it's not just about gender balance. It is about intent balance. It's about the general mix of users and what they're looking for.

Speaker Change: You know, the product enhancements or changes you're making here, is that the case and can you talk about that ecosystem and how it's evolved and where it's at right now?

Lidiane Jones: Yeah, great question. So let me unpack ecosystem a little bit. Bumble continues to be the best platform for women, and it has been a great source of advantage for us. But as we've scaled the business, now we are a billion-dollar business in several markets, there has been a slight imbalance that has been created. And it's not just about gender balance; it's about intent balance; it's about the general mix of users and what they're looking for.

Speaker Change: Yeah, great question.

Speaker Change: So let me unpack ecosystem a little bit. Bumble continues to be the best platform for women, and it has been a great source of advantage for us.

Speaker Change: But as we scale the business, now we are a billion dollar business in several markets.

Lidiane Jones: So we're taking a more sophisticated look at that mix of users and engagement and intent because that really will allow us to deliver the best possible experience to our users. That certainly is important for mature markets, as we've heard from both Anu and me today. Our markets in the US, in particular, are more mature; we have great brand recognition, and great brand love. And it really is about tailoring how we deliver our experiences and how our customers are experiencing our products in their local markets.

Speaker Change: There has been a slight imbalance that has been created, and it's not just about gender balance. It is about intent balance, it's about the general mix of users and what they're looking for. So we're taking a more sophisticated look.

Unnamed Speaker: So we're taking a more sophisticated look to that mix of users and engagement and intent, because that really will allow us to deliver the best possible experience to our users. That certainly is important for mature markets that we've heard from both a new and I today. Our markets in the US, in particular, are more mature. We have great brand recognition and great brand love, and it really is about paloring how is delivering our experiences, how our customers are experiencing our products in their local markets. And that's what a big part of our shift is all about.

Speaker Change: to that mix of users and engagement and intent because that really will allow us to deliver the best possible experience to our users.

Speaker Change: That certainly is...

Speaker Change: important for mature markets. As you've heard from both Anu and I today, our markets in the US in particular are more mature. We have great brand recognition, great brand love. And it really is about tailoring how we're delivering our experiences, how our customers are experiencing our products in their local markets. And that's what, you know, a big part of our shift is all about. I believe that's really going to reignite.

Lidiane Jones: And that's what, you know, a big part of our shift is all about, really, that's really going to reignite the engine of user growth for us. But it'll take us some time. It's complex to get that mixed right, and we want to do right by our customers.

Unnamed Speaker: That's really going to reignite the engine of user growth for us.

Unnamed Speaker: But it will take some time; it's complex to get that mixed right, and we want to do right by it. Mark Kupton, right? Okay.

Speaker Change: The engine of user growth for us, but it will take us some time. It's complex to get that mixed right, and we want to do it right by our customers.

Anuradha Subramanian: Okay, and a follow up on that. I guess from last quarter, look at the magnitude of the change in the four-year guidance. Is it possible to parse out what the impacts of the user amortization changes are here, the near-term trade-off versus the expectations of what the app refresh would deliver over the course of the year? So how much are the new actions, how much is the app refresh not hitting your expectations? Thanks.

Unnamed Speaker: And to follow up on that, I guess from last quarter, look at the magnitude of the change in the failure guidance. Is it possible to parse out what the impacts of the user monetization changes are here, the near-term trade-off versus the expectation that the expectations of what the app refresh would deliver over the course of the year? So how much is the new action? How much of the app refresh not, not hitting on your expectations. Thanks.

Speaker Change: Okay and to follow up on that

Speaker Change: I guess from last quarter, look at the magnitude of the change in the four-year guidance.

Speaker Change: Is it possible to parse out what the impacts of the user amortization

Speaker Change: Your changes are here the the near-term trade-off versus the expectation that the expectations of what the app refresh would would deliver over the course of

Speaker Change: over the course of the year. So how much is the new actions, how much is the app refresh not hitting on your expectations? Thanks.

Unnamed Speaker: Yeah, I can take that. So, you know, if you take a step back and you break down the guidance in terms of, you know, where we were a few months ago versus where we are today, I would say that there are two main factors in terms of where we see things having changed. So, number one is around what we are seeing around top of the funnel, 10. If you recall, in our Q2 call, we had said that we were seeing some fullness in our top of the funnel. And as we went through Q2 and as we've entered Q3, we are seeing those trends continue.

Anuradha Subramanian: Yeah, Ygal, I can, I can take that. So, you know, if you take a step back, and you break down the guidance in terms of, you know, where we were a few months ago versus where we are today, I would say there are two main factors in terms of where we see things having changed. So number one is around what we are seeing around top of the funnel trends. If you recall, in our Q2 call, we had said that we were seeing some slowness in our top of the funnel. And as we went through Q2 and as we have entered Q3, we are seeing those trends continue.

Speaker Change: Yeah, I can take that. So, you know, if you take a step back and you break down the guidance in terms of, you know, where we were a few months ago versus where we are today, I would say there are two main factors in terms of where we see things having changed.

Speaker Change: So number one is around what we are seeing around top of the funnel trends.

Speaker Change: If you recall, in our Q2 call we had said that we were seeing some slowness in our top of the funnel. And as we went through Q2 and as we've entered Q3, we are seeing those trends continue. Now we had...

Anuradha Subramanian: Now we had planned for an improvement in these trends coming out of the relaunch, but also due to the work that we were intending to do from a product and marketing perspective. So this wasn't just about, you know, what we had planned from a relaunch perspective, but this was around the product roadmap that we had for the second half of the year. Given the research and the strategy that you've just heard about, a big part of our second half roadmap product focus is now much more around ecosystem health and making sure that the engagement metrics that we see are going to be healthy, which will absolutely lead to top of the funnel improvements, but like Lidiane said, that will take some time.

Unnamed Speaker: Now, we had planned for an improvement in these trends, coming out of the relaunch, but also due to the work that we were intending to do from a product and marketing perspective. So, this wasn't just about, you know, what we had planned from a relaunch perspective, but this was around the product roadmap that we had for the second half of the year.

Speaker Change: planned for an improvement in these trends.

Speaker Change: Coming out of the relaunch, but also due to the work that we were intending to do from a product and marketing perspective. So, this wasn't just about, you know, what we had planned from a relaunch perspective, but this was around the product roadmap that we had for the second half of the year.

Unnamed Speaker: Given the recent in the strategy that you've just heard about, a big part of our second half roadmap product focus is now much more around ecosystem health and making sure that the engagement metrics that we see are going to be healthy, which will absolutely lead to top of the funnel improvement. But, like Rihani said, that will take some time. And so, that's part of what is built into the reset of the revenue outlook.

Speaker Change: Given the reset and the strategy that you've just heard about, a big part of our second-half roadmap product focus is now much more around ecosystem health and making sure that the engagement metrics that we see are going to be healthy, which will

Lidiane: Absolutely lead to top of the funnel improvements, but like Lidiane said, that will take some time. And so that's part of what is built into the reset of the revenue outlook.

Anuradha Subramanian: And so that's part of what is built into the reset of the revenue outlook. The second part of what we had built into our assumption around acceleration in the second half was around monetization from features such as premium plus, which, as you just heard, we have now paused in favor of some more fundamental work that we're doing around our revenue strategy and our revenue architecture. And I want to make it very, very clear that we still believe very strongly that there is a tremendous amount of opportunity in terms of pair conversion and monetization that is still ahead of us.

Unnamed Speaker: The second part of what we had built into our assumption around acceleration in the second half was around monetization from features such as Premium Plus that, as you just heard about, we have now paused in favor of some more fundamental work that we're doing around that revenue strategy and our revenue architecture. And I want to make it very, very clear that we still, you know, believe very strongly that there is a tremendous amount of opportunity in terms of paired conversion and monetization that is still ahead of us. You know, if you compare paired penetration rates for us versus where you see where the market is, we still are lower than where you see the rest of the market. But we strongly believe that we need to do this fundamental rearchitecture work to set us up for the growth that we know is ahead of us.

Speaker Change: The second part of what we had built into our assumption around acceleration in the second half was around monetization from features such as Premium Plus, that as you just heard about, we have now paused in favor of some more fundamental work that we are doing around our revenue strategy and our revenue architecture.

Speaker Change: And I want to make it very, very clear that we still, you know, believe very strongly that there is a tremendous amount of opportunity in terms of pair conversion and monetization that is still ahead of us. You know, we, if you compare pair penetration rates for us versus where you see where the market is, we still...

Anuradha Subramanian: You know, we, if you compare pair penetration rates for us versus where you see where the market is, we are still lower than where you see the rest of the market. But we strongly believe that we need to do the fundamental re-architecture work to set us up for the growth that we know is ahead of us. So if you add both of these together, you get the second half outlook that we've given today, and you can get to the guidance number.

Speaker Change: lower than where you see the rest of the market but we strongly believe that we need to do this fundamental react three architecture work to set us up for the growth that we know is ahead of us

Unnamed Speaker: So, if you add both of these together, you get to the second half outlook that we've given today, and you can get to the guidance numbers that we have.

Speaker Change: So if you add both of these together, you get to the second half outlook that we've given today, and you can get to the guidance numbers that we have.

Mark Kelly: Our next question comes from Mark Kelly with Stifel. Your line is open. Please go ahead. Great. Thank you very much.

Operator: Our next question comes from Mark Kelley with Stiefel. Your line is open, please go ahead.

Speaker Change: Our next question comes from Mark Kelley with Stiefel. Your line is open, please go ahead.

Operator: Great, thank you very much. I wanted to go back to the question that Ygal asked, which is about, you know, the Women First strategy, and maybe, not to put words in his mouth, but maybe a departure from that in some respects. And given that your main competitor, you know, has a bunch of initiatives aimed at women and is trying to, you know, add different features and functionality for that cohort.

Mark Kelly: I wanted to go back to kind of the question that Ygal asked, which is about, you know, the women-first strategy, and maybe not the proportion is not, but, you know, maybe a departure from that in some respect. And given that your main competitor, you know, has a bunch of initiatives aimed at women and trying to, you know, add different futures and functionality for that cohort. I guess, how do we think about the future in terms of being able to differentiate yourself, you know, versus that competitor or others in the long run? You know, what it seems like in the dating category, some of the apps are just kind of, you know, in some respects converging in terms of functionality and messaging.

Mark Kelley: Great, thank you very much.

Mark Kelley: I wanted to go back to kind of the question that Ygal asked, which is about, you know, the Women First strategy, and maybe, not to put words in his mouth, but, you know, maybe a departure from that in some respects.

Speaker Change: and given that your main competitor has a bunch of initiatives aimed at women and trying to add different features and functionality for that coboard i guess how how do we think about the future in terms of being able to differentiate yourself

Operator: I guess, how do we think about the future in terms of being able to differentiate yourself, you know, versus that competitor or others in the long run when it seems like, in the dating category, some of the apps are just kind of, in some respects, converging in terms of functionality and messaging? That's my first question. And the second one is, you know, you mentioned monetization through advertising on the platform. I guess. How do you get that balance right? You know, between ad load and trying to make sure that your users are not, you know, churning away to competitors? Thanks very much.

Speaker Change: You know, versus that competitor or others in the long run, you know, when it seems like

Speaker Change: in the deedating category some of the answer just kind of in some respects converging in terms of functionality and messaging that's my first question and the second one is you mentioned monetization through through advertising on the platform i guess how do you get that balance right

Mark Kelly: That's my first question.

Mark Kelly: And the second one is, you know, you mentioned monetization through advertising on the platform. I guess, how do you get that balance right, you know, between ad load and trying to make sure that your users are not, you know, turning away to competitors? Thanks very much.

Speaker Change: you know, between ad load and trying to make sure that your users are not, you know, churning away to competitors. Thanks very much.

Mark Kelly: Thank you, Mark.

Lidiane Jones: Thank you, Mark. First, let me start with our strategy. As I said at the start of the earnings call today, Bumble was the first app that really focused on women at the center of our experiences, and that continues to be the case today. We are not shifting our strategy, because our fundamental belief is that when women have a great experience dating, everybody else does, and that's the compass on which we're setting this strategy. We are the best destination for women, and we're going to continue to be.

Lidiane Jones: First, let me start with our strategy. As I said at the start of the earnings call today, Bumble was the first app that really focused on women at the center of our experiences. That continues to be the case today. We are not shifting our strategy because our fundamental belief is that when women have a great experience dating, everybody else does. And that's the compass in which we're setting this strategy: is that we are the best destination for women. And we're going to continue to be.

Speaker Change: Thank you, Mark. First, let me start with our strategy.

Speaker Change: i'd like said at the star of the earnings call today bumble was the first app that really focused on women at the central mar experiences

Speaker Change: That continues to be the case today. We are not shifting our strategy. Because our fundamental belief is when women have a great experience dating, everybody else does. And that's

Speaker Change: The compass in which we're setting this strategy is that we are the best destination for women and we're going to continue to be.

Lidiane Jones: So what we're really focused on is it's really important to make sure that not only our product innovations continue to deliver great experiences in safe experiences for women, but also that in turn, we're delivering a great experience across the entire ecosystem. So these measures are, you know, that we're discussing today are very much centered around what differentiates us inside of the part. So certainly going to be the case, continue to be the case for us.

Lidiane Jones: So what we're really focused on is it's really important to make sure that not only our product innovation continues to deliver great experiences and safe experiences for women, but also, in turn, we are delivering a great experience across the entire economy. So these measures that we're discussing today are very much centered around what differentiates us and sets us apart.

Speaker Change: So, what we're really focused on is, it's really important to make sure that not only our product innovation continues to deliver great experiences and safe experiences for women, but also that in turn we're delivering a great experience across the entire ecosystem.

Speaker Change: So these measures are, you know, that we're discussing today are very much centered around what differentiates us and sets us apart. So certainly going to be the case, continue to be the case for us. With regards to advertising.

Lidiane Jones: So certainly, this will continue to be the case for us. With regard to advertising. We believe that our take here in advertising is going to be very, very anchored in our customer-centric approach to product delivery. So we believe there are important and strategic partnerships that will offer ad space to partners that are adding value to the baiting journey for our customers. So we're going to be very selective.

Lidiane Jones: With regards to advertising, we believe that our take here in advertisement is going to be very, very incurred on our customer centric approach to product delivery. So we believe there are important and strategic partnerships that will offer as space to partners that are adding value to the dating journey to our customers. So we're going to be very selective and will scale this over time, but we see tremendous opportunity for revenue upside, but also added benefit to our customers in terms of their overall dating experience. So it's really about serving the end user and their journey.

Speaker Change: we believe that

Speaker Change: our take here in advertisement is going to be very very incurred on our customer centric approach to product delivery

Speaker Change: so we believe there are important in strategic partnerships that will offer add space to partners that are adding value to the beatinging journey to our customers

Lidiane Jones: And we'll scale this over time, but we see tremendous opportunity for revenue upside and also added benefit to our customers in terms of their overall dating experience. So it's really about serving the end user on their journey. There's definitely upside both for our customers and for revenue for our business. And that's what we're going to do. We now turn to Curtis Nagle with Bank of America Merrill Lynch. Your line is open, please go ahead.

Speaker Change: So we're going to be very selective and we'll scale this over time, but we see tremendous opportunity for revenue upside, but also added benefit to our customers in terms of their overall dating experience.

Speaker Change: So it's really about serving the end user in their journey. There's definitely upside both for our customers and for the revenue for our business and that's what we're going to focus on.

Lidiane Jones: There's definitely a side both for our customers and for the revenue for our business, and that's what we're going to focus on.

Curtis Nagle: We now turn to Curtis Nagle with Bank of America Merrill Lynch.

Operator: We now turn to Curtis Nagle with Bank of America Merrill Lynch. Your line is open. Please go ahead. Great, thanks for the...

Speaker Change: We now turn to Curtis Nagle with Bank of America Merrill Lynch. Your line is open, please go ahead.

Curtis Nagle: Your line is open, and please go ahead. Great. Thanks for taking the question. Just one from me. So given that the step down to the core business and, you know, the restructuring and the acceleration efforts. I'm taking longer than expected.

Curtis Nagle: Great, thanks for taking the question. Just one from me. So, given the step-down in the core business and, you know, the restructuring and re-acceleration efforts,

Unnamed Speaker: Does it make sense to pause or perhaps pull back on BFF and on romantic relationships at this point? Krita, great question. Our efforts with regards to friendship, especially as we closed the Geneva position on July 1st, is very much to give us an opportunity to be where our customers and consumers are. If you look at some of the sentiment, especially younger users as it relates to the category, their starting point is with community creation first. So we believe it's a very connected experience to the future of dating. It's not separate; it's an inter-related and very important generational dynamic that we want to be at the forefront of.

Speaker Change: taking longer than expected. Does it make sense to pause or perhaps pull back on BFF and non-romantic relationships at this point?

Lidiane Jones: Curtis, great question. Our efforts with regard to friendship, especially as we closed the Geneva acquisition on July 1st, are very much to give us an opportunity to be where our customers and consumers are. If you look at some of the sentiments, especially younger users, as it relates to the category, their starting point is with community creation first. So we believe it's a very connected experience to the future of dating. It's not separate.

Speaker Change: Curtis, great question. Our efforts with regards to friendship, especially as we closed,

Speaker Change: The Geneva Acquisition on July 1st.

Speaker Change: is very much to give us an opportunity to be where our customers and consumers are. If you look at some of the sentiments, especially younger users, as it relates to the category, their starting point is with community creation first.

Lidiane Jones: It's an interrelated and very important generational dynamic that we want to be at the forefront of. So that is really the anchor point of how we're tackling community and friendship development as an on-ramp to what will become how many of our users start their dating journey. So we think it is an important investment, and it is appropriately sized to allow us to... gradually grow. And I genuinely believe that there is tremendous, tremendous innovation and opportunity that we can deliver to the business over the long haul. Got it. Thanks very much. Our next question comes from Nathan Feather with Morgan Stanley. Your line is open, please go ahead. Hey everyone, thanks for the question.

Speaker Change: So we believe it's a very connected experience to the future of dating, it's not separate, it's an interrelated and very important generational dynamic that we want to be at the forefront of.

Unnamed Speaker: So that is really the anchor point of how we're tackling community and friendship development as an on-ramp to what will become how many of our users start their dating journey. So we think it is an important investment, and it is appropriately sized to allow us to gradually grow. I genuinely believe that there is tremendous, tremendous innovation and opportunity that we can deliver to the business and the long-haul in this space.

Speaker Change: So that is really the anchor point of how we're tackling community and friendship development as an on-ramp to what will become how many of our users start their dating journey.

Curtis Nagle: So we think it is an important investment, and it is appropriately sized to allow it to gradually grow. And I genuinely believe that there is tremendous, tremendous innovation and opportunity that we can deliver to the business in the long haul in this space.

Unnamed Speaker: Thank you very much.

Speaker Change: Got it. Thanks very much.

Nathan Feather: Our next question comes from Nathan Feather with Morgan Stanley. Your line is open. Please go ahead. Hey, everyone. Thanks for the question.

Operator: Our next question comes from Nathan Feather with Morgan Stanley. Your line is open, please go ahead.

Speaker Change: Our next question comes from Nathan Feather with Morgan Stanley . Your line is open, please go ahead.

Nathan Feather: She's taking a little bit more into the revenue to the celebration. You know, pulling back from mid-teens in for you to close with a flatish, and it's with you guy to help us break down the buckets of this weakness between news or growth, the tension and monetization.

Nathan Feather: Hey everyone. Thanks for the question. Just digging a little bit more into the revenue deceleration, you know, pulling back from, you know, mid-teens in 4Q to closer to flattish in the 3Q guide.

Nathan Feather: Can you help us break down the buckets of this weakness between news or growth, retention, and monetization? And then when it does come to the changes and the guidance in the back half, is it primarily just changes you're making on the platform and the shift in strategy, or is there anything macro or consumer that we should be aware of? Thanks.

Unnamed Speaker: And then when it does come to the changes and the guidance in the back half, is it primarily just changes you're making on the platform and the shift in strategy, or is everything macro or consumer that we should be aware of? Thanks. Sure. So I think if you think about the drivers of growth, Nate, obviously we have top of the final metrics that include new users as well as re-engage users that then sort of become active users on the platform. And then the work that we do to convert those users into paying users. And then the third piece of the puzzle is the work that we do around optimizing prices in each of the markets.

Anuradha Subramanian: Sure. So, if you think about the drivers of GrowthMate, obviously, we have top of the funnel metrics that include new users, as well as re-engaged users that, you know, then sort of become active users on the platform. And then the work that we do to convert those users, you know, into paying users. And then the third piece of the puzzle is the work that we do around optimizing prices in each of the markets.

Nathan Feather: So I think if you think about the drivers of growth, Nate, obviously we have

Speaker Change: Talked with the funnel metrics that include new users as well as re-engaged users that you know then sort of become active users on the platform.

Nathan Feather: And then the work that we do to convert those users, you know, into paying users. And then the third piece of the puzzle is, you know, the work that we do around optimizing prices in each of the markets.

Anuradha Subramanian: As you know, you heard from Lidiane, the thing that we've continued to see softness in now for a few quarters is sort of the top of the funnel metric. Re-engaged users continue to be strong for us, but where we are seeing weakness is in growth in new users. And like I said, again, the weakness is more predominantly felt in the U.S. and in some of our mature markets. However, our newer markets continue to be strong in terms of growth there.

Unnamed Speaker: As you know, you heard from Laryani, the thing that we've continued to see softness in now for a few quarters is on sort of the top of the funnel metrics. We engage users continue to be strong for us, where we are seeing weakness is on growth in new users. And like I said, again, the weakness is more predominantly felt in the U.S. and in some of our mature markets. Our newer markets continue to be strong in terms of growth fair. So the new users is where we are seeing the most impact, which is having an impact on the deterioration that you're seeing in terms of revenue.

Speaker Change: Thank you.

Nathan Feather: As you know, you heard from Lidiane.

Speaker Change: The thing that we've continued to see softness in now for a few quarters is on sort of the top of the funnel metrics. Re-engaged users continue to be strong for us. Where we are seeing weakness is on growth in new users. And like I said again, the weakness is...

Nathan Feather: More predominantly felt in the U.S. and in some of our mature markets. Our newer markets continue to be strong in terms of growth there. So the new users is where we are seeing the most impact, which is having an impact on the deceleration that you're seeing in terms of revenue.

Anuradha Subramanian: So the new users are where we are seeing the most impact, which is having an impact on the deceleration that you're seeing in terms of revenue. And there was a second question, Nate, if you don't mind.

Unnamed Speaker: And then the second question needs, if you don't mind. E.R. Yeah, I mean, you know, as you can imagine, we are keeping a pretty close eye on the impact of just consumer sentiment and whatever we are seeing in the overall macro environment. You know, we've certainly heard that users, especially younger users, are just more discerning with respect to their spend, their spend, and are just, you know, keeping a close eye on the amount of money that they are spending on things. So we are baking in some assumptions from the impact of that indoor second half outlook, but again, it's something that we are monitoring to be closely as things change.

Anuradha Subramanian: Yeah, just anything in here that is macro.

Speaker Change: Yeah, just anything in here that is macro or yeah, more idiosyncratic. Thanks.

Anuradha Subramanian: Yeah, I mean, as you can imagine, we are keeping a pretty close eye on the impact of just consumer sentiment and whatever we are seeing in the overall macro environment. You know, we've certainly heard that users, especially younger users, are just more discerning with respect to their spend and are just, you know, keeping a closer eye on the amount of money that they're spending on things. So we are baking in some assumptions about the impact of that into our second half outlook. But again, it's something that we're monitoring pretty closely as the...

Nathan Feather: Yeah.

Speaker Change: Yeah, I mean, you know, as you can imagine, we are keeping a pretty close eye on...

Speaker Change: the impact of just consumer sentiment and whatever we are seeing in the overall macro environment you know we've certainly heard that users especially younger users are just more discerning with respect to their friend they' spend and are just

Nathan Feather: You know, keeping a closer eye on the amount of money that they're spending on things. So we are baking in some assumptions from the impact of that into our second half outlook. But again, it's something that we're monitoring pretty closely as things change.

Shweta Khajuria: Our next question comes from Shweta Khajuria, with Wolf Research. Your line is open; please go ahead. Thank you for taking my questions. I've got two. One is, so what specifically is driving your confidence with this new strategy right now at this point in time? Is it some theft that you have run? You sound like this; you're confident this is the right strategy going forward, but what is really driving that confidence? And then the second is, you've been seeing top of the funnel pressure now for several months, maybe a few quarters, especially in the United States.

Operator: Our next question comes from Shweta Khajuria with Wolf Research. Your line is open, please go ahead.

Nathan Feather: Our next question comes from Shweta Khajuria with Wolf Research. Your line is open, please go ahead.

Operator: Thank you for taking my questions. I've got two.

Shweta Khajuria: thank you for taking my questions i've got to

Speaker Change: one is so

Shweta Khajuria: What specifically is driving your confidence?

Shweta Khajuria: With this new strategy right now at this point in time, is it some tests that you have run, you sound like you're confident this is the right strategy going forward, but what is really driving that confidence?

Speaker Change: And then the second is you've been seeing top of the funnel pressure now for several months, maybe a few quarters, especially in the United States.

Shweta Khajuria: What, in your opinion, is driving that outside of just the product and user experience? Are you seeing more marketing competition, or are you seeing share shift for any particular reason? What, what do you, in your opinion, is driving that? Thanks a lot.

Speaker Change: What, in your opinion, is driving that, outside of just the product and user experience? Are you seeing more marketing competition? Are you seeing a share shift for any particular reason? What, in your opinion, is driving that? Thanks a lot.

Unnamed Speaker: Yeah, thank you for the question. So let me start with the first part. First, I'm really confident that there is a lot of opportunity in the category. We are experiencing a time where users are more lonely than ever, and it is our job in the category to really support connections overall. So I am really excited about the opportunities ahead of the category overall. Now for us, if you look at the three parts of our plan that you saw today, there are a number of factors and data that have gotten us to this comprehensive plan. With regards to ecosystem, we have tested and started some of this work in a number of markets, which has really allowed us to start separating the strategies that we want to have across ecosystems. As I mentioned today, our overall business is comprised of thousands of ecosystems, so we are able to really see the dynamics when we have the right balance of users in our marketplace.

Shweta Khajuria: One is, so what specifically is driving your confidence in this new strategy right now at this point in time? Is it some tests that you have run? You sound like you're confident this is the right strategy going forward, but what is really driving that confidence? And then, second, you've been seeing top-of-the-funnel pressure for several months, maybe a few quarters, especially in the United States. What, in your opinion, is driving that outside of just the product and user experience? Are you seeing more marketing competition? Are you seeing share shifts for any particular reason? What, in your opinion, is driving that?

Speaker Change: it

Speaker Change: Yeah, thank you for the question. So let me start with the first part.

Lidiane Jones: Thanks a lot.

Speaker Change: First, I'm really confident.

Speaker Change: that there is a lot of opportunity in this category.

Speaker Change: We are experiencing a time where...

Speaker Change: Users are more lonely than ever, and it is our job in this category to really support connections overall. So I am really excited about the opportunities ahead of the category overall. Now for us, if you look at the three parts of our plan that you saw today, there are a number of factors and data that have gotten us to this comprehensive plan. With regards to ecosystem, we have tested and started some of this work in a number of markets, which has really allowed us.

Lidiane Jones: Yeah, thank you for the question. So, first, I'm really confident that there is a lot of opportunity in this category. We are experiencing a time when users are more lonely than ever.

Lidiane Jones: And it is our job in this category to really support connections overall. So I am really excited about the opportunities ahead for the category overall. Now, for us, if you look at the three parts of our plan that you saw today, there are a number of factors and data that have gotten us to this comprehensive plan. With regard to ecosystems, we have tested and started some of this work in a number of markets, which has really allowed us to start separating the strategies that we want to have across ecosystems.

Speaker Change: to start separating the strategies that we want.

Lidiane Jones: As I mentioned today, our overall business is comprised of thousands of ecosystems. So we're able to really see the dynamics when we have the right balance of users in our marketplace. So we're really applying our learnings to define this roadmap and plan for ecosystem health across all of our markets. The second part is our product strategy, which we started earlier this year. One of our key learnings is even as we've raised the bar for profile creation, it kept away from low engagement users, and it drove a lot of success in the engagement of women, and healthier overall conversation across our users.

Speaker Change: to have across ecosystems. As I mentioned today, our overall business is comprised of thousands of ecosystems, so we're able to really see the dynamics when we have the right balance of users in our marketplace.

Unnamed Speaker: So we are really applying our learning to define this roadmap and plan for ecosystem health across all of our markets. The second part is our product strategy, which we started earlier this year. One of our key learnings is even as we raised the bar for profile creation, it kept away some low engagement users, and it drove a lot of success in engagement of women, healthier overall conversation across our users, and we know that really drives the word of mouth. Customer success drives the engine of growth of mouth for this company. Certainly, it was a huge part of our early success.

Speaker Change: So we're really applying our learning to define this roadmap and plan for ecosystem health across all of our markets.

Speaker Change: The second part is our product strategy, which we started earlier this year. One of our key learnings is...

Speaker Change: Even as we've raised the bar.

Speaker Change: For profile creation, it kept away from low-engagement users, and it drove a lot of success in engagement of women, healthier overall conversation across our users, and we know that really drives the word-of-mouth, customer success.

Lidiane Jones: We know that really drives word of mouth. Customer success drives the engine of growth for this company. Certainly, it was a huge part of our early success. I still receive letters and stories of bubble success throughout people's lives.

Speaker Change: Drives the engine of Growth of Miles for this company. Certainly it was a huge part of our early success. I still receive.

Unnamed Speaker: I still receive letters and stories of bumble-success through people's lives, and that's the core of what we want to get to our product innovation: deliver experiences that help people achieve successful outcomes in a delightful way. So we have a lot of great data insight and customer evidence that is the right thing to do. And the final thing that I share today is our revenue plan. We started a revenue rebalancing for Badu about nine months ago, and the Badu customer is more price sensitive. There's some interesting dynamics. And we're taking some of the learnings there where we build out in a number of markets already.

Speaker Change: Letters, and Stories of Bumble Success.

Lidiane Jones: That's the core of what we want to get to with our product innovation: deliver experiences that help people achieve successful outcomes in a delightful way. We have a lot of great data insight and customer evidence that it's the right thing to do. The final thing that I will share today is our revenue plan. We started a revenue rebalancing plan for Badoo about nine months ago. The Badoo customer is more price sensitive, so there's some interesting dynamics.

Speaker Change: And that's the core of what we want to get to our product innovation is deliver experiences that help people achieve successful outcomes in a delightful way.

Speaker Change: And so we have a lot of, you know, great data insight and customer evidence that it's the right thing to do. And the final thing that I shared today is our revenue plan.

Speaker Change: We started a revenue rebalancing for Badoo about nine months ago.

Speaker Change: And the Badoo customer is more price sensitive. There's some interesting dynamics. And we're taking some of the learnings there, where we've rolled out in a number of markets already. What we've seen is, as we've clarified, we brought some value to the lower, you know, greater value to the lower tiers. It increased the conversion, payer conversion across our customers in Badoo. And we're seeing an increase in overall PPU because there's a greater distribution.

Lidiane Jones: We're taking some of the learnings there, where we've rolled out in a number of markets already. What we've seen is, as we've clarified, we brought some value, greater value to the lower tiers. It increased the peer conversion rate across our customers in Badoo. We're seeing an increase in overall PPU because there's a greater distribution. There are just a lot of data points and learnings from Badoo that we're going to be amplifying and expanding across Bumble.

Lidiane Jones: What we've seen is, as we've clarified, we brought some value to the lower, you know, it increased the conversion, payer conversion across our customers. And I do, and we were seeing increased in a raw people because there's a greater distribution. So there's just a lot of data points and learning from Badu that we're going to be amplifying and expanding across Bumble. So we have a focused plan with a lot of thought. And, you know, what I love the most about Bumble is we have a phenomenal brand. We have a loyal customer base. We have great IP, strong financial to allow us to execute on that in a phenomenally talented team.

Speaker Change: So there's just a lot of data points and learning from Baidu that we're going to be amplifying and expanding across Bumble. So we have built this plan with a lot of thought.

Lidiane Jones: We have built this plan with a lot of thought. What I love the most about Bumble is that we have a phenomenal brand. We have a loyal customer base. We have great IP, and strong finances to allow us to execute on that in a phenomenally talented team. We have all of the pieces of the puzzle here. Our number one job at this point forward is to execute because we believe it will not only drive the growth engine again, but it will set us up for success for years to come. You talked about the top of the funnel.

Speaker Change: And, you know, what I love the most about Bumble is we have a phenomenal brand. We have a loyal customer base.

Speaker Change: We have great IP, strong financial, to allow us to execute on that in a phenomenally talented team. So we have all of the pieces of the puzzle here, and our number one job at this point forward is executing.

Lidiane Jones: So we have all the pieces of the puzzle here. And our number one job at this point forward is execute, because we believe it will not only drive growth, the growth entrance again, but it was set up for success for years to come.

Speaker Change: ecute because we believe it will not only drive know growth the grow enter again but it was set up about for success three years to come

Lidiane Jones: The second part of your question was, what have we noticed in terms of what's driving that? As we know with consumer companies, there are always numerous factors. Bumble has always been in a competitive segment and industry. That hasn't changed.

Lidiane Jones: Now, you talked about top of funnel, and the second part of your question was, what have we noticed in terms of what's driving that? And as we know with consumer companies, there's always numerous factors. You know, Bumble has always been in a competitive segment in industry. So that hasn't changed. It's always evolving, of course. And we pay attention to our competitors. But what we believe is the most important thing to reignite top of funnel is really getting the customer experience to be the best one in the market. And that's what's going to get us to be the number one choice for our customers.

Speaker Change: Now you talked about top of funnel, and the second part of your question was, what have we noticed?

Speaker Change: in terms of what's driving that.

Speaker Change: And as we know with consumer companies, there's always numerous factors, you know, Bumble has always been in a competitive segment and industry, so that hasn't changed, it's always evolving, of course, and we pay attention to our competitors.

Lidiane Jones: It's always evolving, of course. We pay attention to our competitors. What we believe is the most important thing to reinvigorate the top of the funnel is really getting the customer experience to be the best one in the market. That's what's going to get us to be the number one choice for our customers because the other factors are always going to be evolving. We will always be

Speaker Change: But what we believe is the most important thing to reignite Top of Funnel is really getting the customer experience to be the best one in the market. And that's what's going to get us to be the number one choice for our customers.

Lidiane Jones: Because the other factors are always going to be evolving, and we will always be paying.

Speaker Change: Because the other factors are always going to be evolving and we will always be paying attention to them.

Operator: Our next question comes from Jian Li with Evercore ISI. Your line is open, please go ahead.

Speaker Change: Our next question comes from Jian Li with Evercore ISI. Your line is open, please go ahead.

Unnamed Speaker: Thank you for taking the question. So, a couple. First, you know, the you talked about this reset. I could take a few quarters. How should we think about kind of the growth equation exiting this year into the next year? Like, what should we look for as the leading indicator of success of found this reset? Should we look at the future? We see kind of a payer conversion improving top of funnel, or are people kind of, I guess, recovery path. And the second just to double kick on Geneva. Pretty interesting acquisition. You know, can you just talk about the opportunity set there both in terms of Geneva itself, but also I think Geneva has a few kind of community building features.

Operator: Great. Thanks for taking the question. So, a couple.

Jian Li: Great, thanks for taking the question. So, a couple. First, just, you know, Lidiane, you talked about this reset could take a few quarters.

Jian Li: How should we think about kind of the growth equation exiting this year into the next year? Like what should we look for as the leading indicator of success from this reset? Should we see kind of a payer conversion improving top of funnel or are people kind of, I guess, recovery path?

Jian Li: First, just, you know, Lidiane, you talked about this reset could take a few quarters. How should we think about the growth equation going from this year into the next year? Like, what should we look for as the leading indicator of success from this reset? Should we see kind of a payer conversion improving the top of the funnel, or are people on a kind of, I guess, recovery path? And second, just to double-click on Geneva, a pretty interesting acquisition. You know, can you just talk about the opportunity set there, both in terms of Geneva itself but also, I think, beyond Geneva.

Tom: And second, just to double-click on Geneva, pretty interesting acquisition. Can you just talk about the opportunity set there, both in terms of Geneva itself, but also I think Geneva has a few kind of community-building features. Are you kind of considering leveraging these techs back into your core apps? Any kind of product development around that would be great. Thanks again, Tom.

Unnamed Speaker: Are you kind of considering leveraging these text back into your core apps? Any kind of product development around that will be great. Thanks a ton. Yeah, thank you. Great questions. From the first part, there are a number of metrics that we are monitoring really closely from consideration, top of funnel, all the way down to conversion. And the ARP booth strength, as you know, at this point, you've heard our guidance for the second half of the year.

Lidiane Jones: Yeah, thank you. Great questions. So in the first part, there are a number of metrics that we're monitoring really closely from consideration, top of the funnel, all the way down to conversion and RPB strength. As you know, at this point, you've heard our guidance for the second half of the year. Our goal is to provide progress and updates to our investors in the corridors ahead, as we get more insight into our progress on this strategy. But our guidance is the, you know, the information that we have to share today. With regard to Geneva, you're absolutely right.

Speaker Change: Yeah, thank you. Great questions. So in the first part,

Speaker Change: There are a number of metrics that we are monitoring really closely from.

Speaker Change: Consideration, Top of Funnel, all the way down to Conversion and the RP Blue Strength, as you know.

Unnamed Speaker: Our goal is to provide progress and updates to our investors in the quarters ahead as we get more insight into our progress on this strategy, but our guidance is the information that we have to share today. With the rest of you, Geneva, you're absolutely right. Geneva has community-based capabilities. It has, you know, healthy penetration of users in some core cities here in the US. And what's exciting about the customers using Geneva is that they love it, first of all. And they're, you know, doing what younger users want to do today, which is connecting with in person with their local communities.

Speaker Change: at this point you've heard our guidance for that the second half of the year our goal is to provide progress and updates to investors in the quarters ahead as we get more insight into our progress on this strategy but on our guidance is the the information that we have to share today

Lidiane Jones: Geneva has community-based capabilities. It has, you know, a healthy penetration of users in some core cities here in the US. And what's exciting about the customers using Geneva is that they love it, first of all. And they're, you know, doing what younger users want to do today, which is connecting in-person with their local communities. There are running clubs, there are movie enthusiasts, and it's vibrant. People can organize events; they get to know each other.

Speaker Change: With regards to Geneva, you are fully right. Geneva has...

Speaker Change: It has community-based capabilities. It has healthy penetration of users in some core cities here in the U.S.

Speaker Change: And what's exciting about the customers using Geneva is that they love it, first of all. And they're, you know, doing what younger users want to do today, which is connecting in person with their local communities. There are running clubs, there are movie enthusiasts.

Unnamed Speaker: With their running clubs, their movie enthusiasts, and its vibrant people, can organize events. They get to know each other. And this is exactly what we believe is going to be a great growth of, you know, engine frauds in the long haul. So we are planning to launch an updated version of Geneva this fall and start scaling it across our markets where we do have footprint across the Bumble Lake. It's a great way for us to engage with a broader set of users, so opportunities to increase our time. It's quite significant here, but it's going to be very grounded on our principles of great customer experience, great experience for women.

Lidiane Jones: And this is exactly what we believe is going to be a great growth engine for us in the long haul. So we are planning to launch an updated version of Geneva this fall and start scaling it across our market, where we do have a footprint across Bumble Inc. It's a great way for us to engage with a broader set of users, so opportunities to increase our TAM are quite significant here. But it's going to be very grounded in our principles of great customer experience, great experience for women, and safety, a safe space. But with any acquisition, as you know, it takes time to get it right.

Speaker Change: and it's vi branch people can organize evthen they get to know each other and this is exactly what we believe is going to be a great growth of you know engine for us in the long haul so we are planentning to launch an up theated version of geneva the fallen start scaling it across our markets where we do have footprint across the bumble to great way for us to engage with a broader set of users so opportunities to increase for ten

Speaker Change: It's quite significant here. But it's going to be very grounded on our, on our principles of great customer experience, great experience for women, and safe, a safe space.

Unnamed Speaker: And safe space. But with any acquisition, as you know, it takes time to get it right. So our goal is to launch it, scale it gradually, and we'll be learning how to, you know, evolve and scale this business over the quarters ahead. It will take us some time, but we're very excited about the opportunities that they bring us. On one final point, you did talk about the tech stack. Geneva built a fantastic tech stack. We're very excited about how scalable it is. There are definitely technology and capabilities that we can take advantage of across the portfolio.

Lidiane Jones: So our goal is to launch it, scale it gradually, and we'll be learning what and how to evolve and scale this business over the quarters ahead. It will take us some time, but we're very excited about the opportunity that they bring us. One final point, you did talk about the tech stack. Geneva's built a fantastic tech stack. We're very excited about how scalable it is. There are definitely technologies and capabilities that we can take advantage of across our portfolio. And that's fundamentally how we're operating.

Speaker Change: But with any acquisition, as you know, it takes time to get it right. So our goal is to launch it, scale it gradually, and we'll be learning what, how to, you know, evolve and scale this business over the quarters ahead. It will take us some time, but we're very excited about the opportunity that they bring us.

Speaker Change: One final point, you did talk about the tech stack.

Speaker Change: gen built a fantastic text staff

Speaker Change: We're very excited about how scalable it is.

Speaker Change: There are definitely technology and capabilities that we can take advantage across our portfolio. And that's fundamentally how we're operating as a company. I think that's the key shift here is that we are operating as a customer-centric portfolio company. And we can take the learnings, the technology, the best practices from all of our apps and apply to each other to accelerate growth for the portfolio as a whole. And Geneva certainly will play a role in that.

Unnamed Speaker: And that's fundamentally how we're operating as a company. I think that's the key shift here is that we are operating as a customer-centric portfolio company. And we can take the learnings, the technology, the best practices from all of our apps and apply to each other. Chuck Seller-8 grows for the portfolio of the whole. And Geneva certainly will play a role in it.

Unnamed Speaker: Brown.

Benjamin Black: We now turn to Benjamin Black with Deutsche Bank. Your line is open; please go ahead. Great, thank you for taking the question.

Operator: We now turn to Benjamin Black with Deutsche Bank. Your line is open, please go ahead.

Speaker Change: We now turn to Benjamin Black with Deutsche Bank. Your line is open, please go ahead.

Operator: Great. Thank you for taking the question. Just a follow-up on the demographic imbalance you spoke about. Can you just give us some examples of exactly how you plan to resolve the imbalance there, some practical examples? And then one on recovery.

Benjamin Black: Just to follow up on some of the demographic and balance you spoke about, can you give us some examples on exactly how you plan to resolve the imbalance there, some practical examples, and then one on the recovery. I think the guide on the plan that revenue growth is going to be, you know, exiting the year in a sort of a negative trajectory. So I guess the question is how should we think about the shape of the recovery curve as a sort of a multi-year endeavor or something that you could expect to see quicker, quicker reversals than the KPIs?

Benjamin Black: Great, thank you for taking the question. Just a follow-up on the demographic imbalance you spoke about.

Benjamin Black: Can you give us some examples on exactly how you plan to resolve the imbalance there, some practical examples?

Benjamin Black: I think the guide implies that revenue growth is going to be exiting the year on a sort of a negative trajectory. So I guess the question is, how should we think about the shape of the recovery curve? Is this sort of a multi-year endeavor, or is it something that you could expect to see quicker reversals in the KPS? Thank you.

Speaker Change: And then one on the recovery, I think the guide implies that revenue growth is going to be...

Speaker Change: So, you know, exiting a year in sort of a negative trajectory, so I guess the question is, how should we think about the shape of the recovery curve? Is this sort of a multi-year endeavor, or is it something that you can expect to see quicker reversals in the KPS? Thank you.

Unnamed Speaker: Thank you. Yeah, let's go with this first part. Great question. So the first part is, you know, unpacking ecosystems and the imbalance. As I shared earlier, we're really looking at the balance in a multi-faceted way. It is ensuring that we have a mix of intent, of users, of backgrounds, of different generations. All of that has a big rule in ensuring that when someone gets to Bumble, they find the connections that they're looking for. And it's ensuring that a broad set of users will give us more flexibility to help people find each other. And ensuring that also we talked about today that we have highly engaged, you know, aligned in intentions in our existence.

Lidiane Jones: Yeah, let me start with the first part. Great, great question.

Speaker Change: let's go with the first part great reef questquestion so the first part is

Lidiane Jones: So the first part is, you know, unpacking ecosystems and the imbalance. As I shared earlier, we're really looking at the balance in a multifaceted way. It is ensuring that we have a mix of intent, of users, of backgrounds, of different generations. All of that plays a big role in ensuring that when someone gets to Bumble, they find the connection that they're looking for.

Speaker Change: You know, unpacking ecosystems and the imbalance, as I shared earlier, we're really looking at the balance in a multi-faceted way. It is ensuring that

Speaker Change: We have a mix of intent, of users, of backgrounds, of...

Speaker Change: different generations, all of that has a big role in ensuring that when someone gets to Bumble they find the connection that they're looking for and it's ensuring that

Lidiane Jones: And it's ensuring that, you know, a broad set of users will give us more flexibility to help people find each other. And ensuring, also, as we talked about today, that we have highly engaged, you know, aligned in intention in our ecosystem. So I'll give you an example, in terms of some of the techniques.

Speaker Change: You know, a broad set of users.

Speaker Change: will give us more flexibility to help people find each other. And ensuring that also, as we talked about today, that we have highly engaged, you know, aligned in intention in our ecosystem. So I'll give you an example in terms of some of the techniques.

Unnamed Speaker: So I'll give you an example in terms of some of the techniques. There are product techniques. There are marketing techniques. There are revenue techniques. You know, from a product one, as you heard from us today, we've raised the bar in our April launch on profile creation. So users need to add more photos. They have to add more information that has increased retention or engagement over users. But it's kept away from low engagement users. That had an impact on the number of people that kind of passed through the funnel. And so that has a balance impact, has a revenue impact, but has a longer term positive impact to the success of the company.

Lidiane Jones: There are product techniques, there are marketing techniques, there are revenue techniques. You know, from a product point of view, as you heard from us today, we've raised the bar in our April launch on profile creation. So users need to add more photos, they have to add more information, that has increased, you know, increased our retention, our engagement of our users, but it's kept away from low engagement users. That had an, you know, impact on the number of people that kind of pass through the funnel.

Speaker Change: There are product techniques.

Speaker Change: There are marketing techniques, there are revenue techniques, and from a product one, as you heard from us today, we've raised the bar.

Speaker Change: in our April launch on profile creation.

Benjamin Black: So users need to add more photos, they have to add more information, that has increased retention, you know, increased our retention, our engagement of our users.

Benjamin Black: But it kept away some low-engagement users. That had an impact on the number of people that kind of passed through the funnel. And so that has a balance impact, has a revenue impact, but has a longer-term positive impact to the success of the company.

Lidiane Jones: And so that, you know, has an impact, like has a balance impact, has a revenue impact, but has a lot of, you know, longer-term positive impact on the success of the company. In terms of marketing, there are many different user acquisition strategies in marketing, and we can really use it as a core lever to bring the right users in. So we are going to look at the makeup of our mature markets and our emerging markets and ensure that we're applying the right techniques, whether it's performance marketing, whether it's experiential, whether it's very tailored to a particular audience.

Unnamed Speaker: There was a marketing. There may be different user acquisitions, strategies in marketing. And we can really use it as a core leverage to bring the right users in. So we are going to look at the makeup of our market and our emerging markets and ensure that we're applying the right techniques, whether it's performance marketing, whether it's experiential, or whether it's very tailored to a particular audience. It will be very specific and personalized to the market that we're playing in. And then from a revenue perspective, you know, promotions and many other pricing techniques can also ensure that the right users are coming into the product.

Lidiane Jones: It will be very specific and personalized to the market that we're playing in. And then, from a revenue perspective, promotions and many other pricing techniques can also ensure that the right users are coming into the product. So we are really looking at these three pillars to ensure that the right people are making it into our ecosystem and that they're successful in our product. I think that was the full context of your question, so hopefully I got it right.

Unnamed Speaker: So we are really looking at these retailers to ensure that the right people are making a tour ecosystem and that they're successful, you know, in our product. I think that was the full makeup of your questions. Hopefully I got it right. Oh, do you need for recovery? At this, you know, as I shared earlier, we are, you know, what I'm most confident about is that we have built a plan that is aggressively and urgently looking at every aspect of our business, from the makeup of our customers to our innovation to our revenue. And we are moving as quickly as we can.

Lidiane Jones: Oh, the journey for recovery. As I shared earlier, what I'm most confident about is that we have built a plan that is aggressively and urgently looking at every aspect of our business, from the makeup of our customers, to our innovation, to our revenue. And we are moving as quickly as we can, but a plan like this takes time, and we're favoring bringing in. We are going to share progress in the quarters ahead, but don't have any additional timeline to share as yet.

Speaker Change: The journey for a recovery.

Benjamin Black: At this as I shared earlier.

Benjamin Black: We are you know what I'm most confident about is that we have built a plan that is aggressively and urgently looking at every aspect of our business from the makeup of our customers who are innovation to our revenue.

Benjamin Black: And we are moving as quickly as we can but a plan like this takes time and we're favoring.

Unnamed Speaker: But a plan like this takes time, and we're moving as quickly as we can. We're moving as quickly as we can. and sustainable revenue to the business, because that's going to set it up for long-term success.

Benjamin Black: Bringing in.

Benjamin Black: Sustainable revenue to the business, because that's going to set us up for long term success.

Unnamed Speaker: We are going to share progress in the quarters ahead, but don't have any additional timeline to share as of today.

Benjamin Black: We are going to show progress in the quarters ahead, but don't have any additional timeline to share as of today.

Benjamin Black: Yes.

Ken Gawrelski: Our next question comes from Ken Gawrelski with Wells Fargo.

Operator: Our next question comes from Ken Gawrelski with Wells Fargo. Your line is open, please go ahead.

Speaker Change: Our next question comes from Ken go wrong Ski with Wells Fargo. Your line is open. Please go ahead.

Ken Gawrelski: Your line is open; please go ahead. Thanks, Dr. Fedman. Just a couple, please. First, can you talk a little bit about the significant restructure you did earlier this year? Is there any, as you think about that in light of kind of the reset and strategy and the reinvestment phase here, did that in any way set you up in a more difficult place, or do you find that the investments you need to make are in different areas with different type of staff, etc. with different capabilities. So that may be my first question.

Operator: Thanks for having me on. Just a couple, please.

Speaker Change: Thanks for fitting me in just a couple please first could you talk a little bit about that.

Speaker Change: The significant restructuring you did earlier this year.

Speaker Change: Are there any.

Speaker Change: As you think about that in light of kind of the reset strategy and the reinvestment phase here.

Speaker Change: It does.

Speaker Change: Did that in any way set you up in a more difficult.

Speaker Change: Place or do you find that the.

Speaker Change: The investments you need to make are in different areas with different type of stuff et cetera with different capabilities. So that maybe that's my first question. The second question is.

Unnamed Speaker: The second question is maybe a broader one, which is the public markets tend to be relatively inhospitable to transition stories with kind of uncertain timeframes. I know you've asked this; you've answered this question in kind of multiple ways, but maybe just more directly, how should we just think about timeframes in terms of how you will evaluate the success of transition here in anything you can tell us in terms of public milestones. I know you have the second half guidance, but anything you can help us just even if it's not quantitative, more qualitative public milestones.

Speaker Change: Maybe a broader one which is the.

Benjamin Black: Public markets tend to be relatively in hospital hospitable to twos transition stories with kind of on certain timeframes.

Speaker Change: I know you've asked you've answered this question in kind of multiple ways, but maybe just more directly how should we just think about timeframes.

Speaker Change: In terms of how you will evaluate the success of the transition here.

Speaker Change: Anything you can tell us in terms of public milestones I know you have the second half guidance, but anything you can help us just even if it's not quantitative more qualitative public milestones. Thank you.

Unnamed Speaker: Thank you.

Unnamed Speaker: Yes, Ken. Thank you for the questions. So, in the restructuring part, as you know, in the first half of the year, we restructured about 30% of our workforce. And the principles behind the restructuring was about agility and ensuring that we were optimally organized to execute as a company. I feel really good about where we are.

Kenneth Gawrelski: First, could you talk a little bit about the significant restructuring you did earlier this year? As you think about that in light of the reset and strategy and the reinvestment phase here, did that in any way set you up in a more difficult place? Or do you find that the investments you need to make are in different areas with different types of staff, etc., with different capabilities? So that maybe is my first question.

Ken: Yes, Ken. Thank you for the question so on the restructuring part as you know in the first half of the year, we restructured about.

Speaker Change: 30% of our workforce and the principles behind the restructuring was about agility and ensure that we're optimally organized to execute as a company I feel really good about where we are we don't have any additional restructuring plans, we are well set up and we have the <unk>.

Unnamed Speaker: We don't have any additional restructuring plans. We are well set up and we have the right talent in our organization to go execute. That was a necessary and important set of actions that we took to put it in a position where we can execute on our strategy, and we are well suited to do that. So I feel really good about where we are as a company and as a team.

Benjamin Black: <unk> talent in our organization to go execute that was a necessary and important set of actions that we took to put us in a position where we can execute on our strategy and we are well suited to do that so I feel really good about.

Speaker Change: Where we are at the company and at the team and in terms of what our minds on a little town and you.

Unnamed Speaker: And in terms of, you know, what am I going to look at? And I don't have a specific timeline to share today, which I know is not very satisfying, but there's a few areas that we're going to be evaluating. But on the ecosystem side, as we mentioned, the balance of the ecosystem is going to be a key metric that we're going to be looking at internally. And there's many details to in sub metrics to those. And what we have learned based on tasks that we've done is that it takes different windows of time to create balance based on the market.

Speaker Change: You don't have a specific timeline to share today, which I know is not very satisfying, but there's a few areas that we're going to be evaluating that.

Benjamin Black: On the ecosystem side as we mentioned.

Benjamin Black: The balance of the ecosystem is going to be a key metrics that we're going to be looking at internally and theres. Many details too and its sub metrics to those and while we have learned based on tests that we've done is that it takes different windows of time should create balance based on the market so well.

Unnamed Speaker: So what we're going to be looking at in the quarters ahead is the velocity and the effectiveness of the different techniques that I talked about just before your question. The second factor is we have important product deliverables from the fall through the winter, and we are going to be looking at engagement and retention. And that certainly will play a role in helping us understand how the users that are in your ecosystem can be monetized. And on our revenue, we architecture, part of what we're going to be testing across many markets is the right balance of, you know, revenue, value creation, and revenue extraction out of the values.

Benjamin Black: We are going to be looking at in the.

Benjamin Black: Quarters ahead is the velocity.

Speaker Change: The effectiveness of the different techniques that I talked about just before your question. The second factor is we have important product deliverables from the fall through the winter and we are going to be looking at engagement and retention and that certainly will play a role in helping us understand.

Speaker Change: And how the users that are in ecosystem can be monetized and on our revenue we architecture part of what we're gonna be testing across many markets is the right balance.

Benjamin Black: Revenue value creation and revenue extraction out of the value. So as we give more experiences for our users what's monetize the wall how quickly can we realize that.

Unnamed Speaker: So, as we give more experiences to our users, what's monetizable, how quickly can we realize that, that set of revenue. So we're going to be learning a lot in terms of velocity of the different techniques and different markets.

Speaker Change: But set of revenue so we're gonna be learning a lot in terms of velocity of the different techniques and different market as our new said.

Unnamed Speaker: So as one who said in emerging markets, we are seeing strengths, and we're going to continue to invest in those in the near term. But some of our momentum markets will take a little bit longer. Our goal is to provide progress along the way and be transparent with the investor community. as much as we can.

Speaker Change: In emerging markets, we are seeing strength and we're going to continue to invest in those in the near term.

Speaker Change: But some of our more mature markets will take a little bit longer our goal is to provide progress along the way and be transparent with the investor community is as much as we can.

Unnamed Speaker: Ladies and gentlemen, that's all the time we have for our Q&A and today's Bumble 2nd quarter 2020 financial results. We'd like to thank for your participation. You may now disconnect your.

Kenneth Gawrelski: The second question is maybe a broader one, which is that public markets tend to be relatively inhospitable to transition stories with uncertain timeframes. I know you've answered this question in kind of multiple ways, but maybe just more directly, how should we think about timeframes in terms of how you will evaluate the success of the transition here? And anything you can tell us in terms of public milestones? I know you have the second half guidance, but anything you can help us, just even if it's not quantitative, but more qualitative public milestones. Thank you.

Speaker Change: Ladies and gentlemen, that's all the time, we have for all Q&A on today's <unk> second quarter 2024 financial results.

Lidiane Jones: Yes, Ken, thank you for the question. So in the restructuring part, as you know, in the first half of the year, we restructured about 30% of our workforce. And the principles behind that restructuring were about agility and ensuring that we were optimally organized to execute as a company. I feel really good about where we are. We don't have any additional restructuring plans.

Lidiane Jones: We are well set up, and we have the right talent in our organization to go execute. That was a necessary and important set of actions that we took to put us in a position where we can execute on our strategy. And we are well suited to do that. So I feel really good about where we are as a company and as a team. And in terms of, you know, what am I going to look at? And I don't have a specific timeline to share today, which is not very satisfying.

Lidiane Jones: But there are a few areas that we're going to be evaluating. On the ecosystem side, as we mentioned, the balance of the ecosystem is going to be a key metric that we're going to be looking at internally, and there are many details and submetrics to those.

Lidiane Jones: And what we have learned based on tests that we've done is that it takes different windows of time to truly balance based on the market. So what we're going to be looking at in the quarters ahead is the velocity and the effectiveness of the different techniques that I talked about just before your question. The second factor is that we have important product deliverables from the fall through the winter.

Lidiane Jones: And we are going to be looking at engagement and retention, and that certainly will play a role in helping us understand how the users that are in the ecosystem can be monetized. And in our revenue re-architecture, part of what we're going to be testing across many markets is the right balance of, you know, revenue, value creation, and revenue extraction out of the value. So as we give more experiences to our users, what's monetizable, how quickly can we realize that set of revenues.

Lidiane Jones: So we're going to be learning a lot in terms of the velocity of these different techniques and different markets. As Anu said, in emerging markets, we are seeing strengths, and we're going to continue to invest in those in the near term. But some of our more mature markets will take a little bit longer. Our goal is to provide progress along the way and be transparent with the, you know, investor community.

Operator: Ladies and gentlemen, that's all the time we have for our Q&A and today's Bumble second quarter 2024 financial results. We'd like to thank you for your participation. You may now disconnect your lines.

Speaker Change: Thank you for your participation you may now disconnect your lines.

Speaker Change: [music].