Bumble Inc. (NASDAQ: BMBL)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001830043
Market Cap 346.42 Mn
P/B 0.51
P/E -1.74
P/S 0.35
ROIC (Qtr) -12.53
Div Yield % 0.00
Rev 1y % (Qtr) -10.03
Total Debt (Qtr) 589.35 Mn
Debt/Equity (Qtr) 0.87

About

Bumble Inc., known by its ticker symbol BMBL, is a prominent player in the online dating industry, with a mission to create a world where all relationships are healthy and equitable through Kind Connections. The company operates five apps, including Bumble, Bumble For Friends, Badoo, Fruitz, and Official, and generates revenue through a freemium model, offering both free and premium features to its users. Bumble's main business activities focus on providing users with various platforms to connect with others, whether for romantic relationships,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 307.88M provide 53.54x coverage of short-term debt 5.75M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 173.79M exceeds capital expenditure of 12.11M by 14.35x, indicating strong organic growth funding capability.
  • Tangible assets of 476.19M provide exceptional 12.24x coverage of deferred revenue 38.91M, showing strong service capability backing.
  • Operating cash flow of 185.90M provides strong 4.78x coverage of deferred revenue 38.91M, indicating service delivery capability.
  • Operating cash flow of 185.90M provides solid 1.51x coverage of current liabilities 123.18M, showing strong operational health.

Bear case

  • Operating cash flow of 185.90M barely covers its investment activities of (12.11M), with a coverage ratio of -15.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (12.11M) provide weak support for R&D spending of 120.75M, which is -0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of (124.86M) show weak coverage of depreciation charges of 42.17M, with a -2.96 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 173.79M represents just -5.62x of debt issuance (30.94M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Other non-current liabilities of 410.12M represent a high 0.86x of tangible assets 476.19M, suggesting significant long-term obligations without clear asset backing.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.32 1.10
EV to Cash from Ops. EV/CFO 3.76 -3.08
EV to Debt EV to Debt 1.19 28.98
EV to EBIT EV/EBIT -5.61 -26.54
EV to EBITDA EV/EBITDA -4.64 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 4.03 -67.01
EV to Market Cap EV to Market Cap 2.02 0.90
EV to Revenue EV/Rev 0.70 61.25
Price to Book Value [P/B] P/B 0.51 1.56
Price to Earnings [P/E] P/E -1.74 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) -2.77 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -45.67 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.15 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 73.62 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 77.51 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 76.80 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 70.24 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 57.87 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) -5.52 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.08 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.50 1.54
Current Ratio Curr Ratio (Qtr) 3.55 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.87 -0.39
Interest Cover Ratio Int Coverage (Qtr) -2.77 -202.56
Times Interest Earned Times Interest Earned (Qtr) -2.77 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.20 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -12.45 -4,786.62
EBT Margin % EBT Margin % (Qtr) -16.94 -5,002.12
Gross Margin % Gross Margin % (Qtr) 70.60 58.65
Net Profit Margin % Net Margin % (Qtr) -19.80 -5,003.08