Why Bumble (BMBL) Shares Are Trading Lower Today

What Happened:

Shares of online dating app Bumble (NASDAQ:BMBL) fell 7.31% in the after-market session after the company reported first-quarter results that narrowly topped analysts' revenue, paying users, and earnings per share (EPS) estimates, but missed on free cash flow. Revenue and adjusted EBITDA guidance for the next quarter were below Consensus. Despite this, management remained optimistic, stating that "the momentum in the business sets the company up to continue delivering profitable growth." Finally, it is worth calling out that sentiment and expectations were lowered going into the quarter, as BMBL provided an intra-quarter filing related to a secondary offering that dampened enthusiasm around payers. Therefore, while this was a mixed quarter, it was 'better-than-feared.'

What is the market telling us:

Bumble's shares are very volatile and over the last year have had 54 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Bumble is down 8.27% since the beginning of the year, and at $18.74 per share it is trading 50.6% below its 52-week high of $37.92 from July 2022. Investors who bought $1,000 worth of Bumble's shares at the IPO in February 2021 would now be looking at an investment worth $266.68.

Is now the time to buy Bumble? Access our full analysis of the earnings results here, it's free.