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Bumble:Quarterly Results/2025 Q2: Difference between revisions
→Q2 2025 Earnings Call Summary
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* CEO Whitney Wolfe said four months ago she returned to the company to reset their strategy towards quality over quantity when it comes to how they operate, revenue and member base. | * CEO Whitney Wolfe said four months ago she returned to the company to reset their strategy towards quality over quantity when it comes to how they operate, revenue and member base. | ||
* Wolfe said they have removed over $100 million from their cost base through streamlined operations, reduced headcount and more efficient marketing engine. | * Wolfe said they have removed over $100 million from their cost base through streamlined operations, reduced headcount and more efficient marketing engine. | ||
* The $100 cost base savings so far include approximately $40 million related to the June workforce reduction. | |||
==== User base ==== | ==== User base and pricing ==== | ||
* '''Wolfe said the majority of the payer declines in in Q2 was related to the end of legacy promotions in lower-monetizing regions.''' "The majority of this quarter's payer decline came from the phase out of a legacy strategy related to promotions, which were skewed towards certain of our lower monetizing noncore markets. As of late April, we have been reemphasizing our core of sustainable full-price subscriptions," she said. | * '''Wolfe said the majority of the payer declines in in Q2 was related to the end of legacy promotions in lower-monetizing regions.''' "The majority of this quarter's payer decline came from the phase out of a legacy strategy related to promotions, which were skewed towards certain of our lower monetizing noncore markets. As of late April, we have been reemphasizing our core of sustainable full-price subscriptions," she said. | ||
* Wolfe said subscriptions now represent 80% of total payers up from 70% in Q1. | * Wolfe said subscriptions now represent 80% of total payers up from 70% in Q1. | ||
* '''CFO Ronald Fior said pricing was boosted by the changes they made to monetization and some pricing optimization (Q&A).''' | |||
* '''Wolfe said to assess the quality of user using their Beehive Fit Framework, the use three categories: approve (members showing high intention, effort and alignment to the experience they are building i.e. high quality daters), improve (those with the right intentions but who need guidance and better tools to improve their profiles) and remove.''' | * '''Wolfe said to assess the quality of user using their Beehive Fit Framework, the use three categories: approve (members showing high intention, effort and alignment to the experience they are building i.e. high quality daters), improve (those with the right intentions but who need guidance and better tools to improve their profiles) and remove.''' | ||
* Wolfe said approved members monetize at double the rate of improved members. | * Wolfe said approved members monetize at double the rate of improved members. | ||
* Wolfe said they believe eliminating "remove cohort" will lead to a more quality platform even if it '''causes a near- term headwind to payers'''. | * Wolfe said they believe eliminating "remove cohort" will lead to a more quality platform even if it '''causes a near- term headwind to payers'''. | ||
* Product launches are expected to lead to near-term attrition from lower intent members. | |||
* '''Wolfe said "improve" accounts for the largest share of the user base while "remove" accounts for less than 10% (Q&A).''' | |||
==== Products ==== | ==== Products ==== | ||
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* Wolfe said for Bumble date, they are building a fully modern AI-first cloud-native tech stack from the ground up, which is set to be completed in Spring. | * Wolfe said for Bumble date, they are building a fully modern AI-first cloud-native tech stack from the ground up, which is set to be completed in Spring. | ||
* Wolfe said Bumble BFF is migrating to modern platform with the acquisition of Geneva. | * Wolfe said Bumble BFF is migrating to modern platform with the acquisition of Geneva. | ||
* Fior said they are being disciplined on headcount with hiring go particularly to product and AI-related roles. | |||
==== Marketing ==== | ==== Marketing ==== | ||
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* Wolfe said they have realigned marketing with a focus on organic growth, high quality acquisitions and durable engagement. | * Wolfe said they have realigned marketing with a focus on organic growth, high quality acquisitions and durable engagement. | ||
* '''Wolfe said they are already seeing signs of early progress. Retention and organic registrations are up.''' | * '''Wolfe said they are already seeing signs of early progress. Retention and organic registrations are up.''' | ||
* Fior said they cut on performance marketing deeper than planned. | |||
*Fior said marketing spend is expected to increase in the second half compared to Q2 levels as they support brand initiatives including the August product launches. This is factored into the Q3 guidance they issued. | |||
==== Alternative payment systems ==== | |||
* Fior said in June, they started testing direct billing options for some purchases on iOS in the US, giving customers discounted pricing. | |||
* Early results were positive with 30% of users opting for direct billings. | |||
* '''Fior said, if they roll it up broadly, they expect it to modestly boost gross profit dollars in 2025.''' | |||
* Fior said such tests are headwind to reported revenue since they offer discounted prices. | |||
==== Share repurchases ==== | |||
* They didn't repurchase any shares in Q2 and continue to $50 million remaining on current authorization. | |||
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