BMBL - Bumble: Double Digit User And Revenue Growth Compounded With Attractive Valuation

2024-06-18 13:11:56 ET

Summary

• Despite a sharp decline in dating app stocks year to date, Bumble continues to grow its user base by double digits.
• Its popularity has increased particularly in Europe and Latin America. The company's diverse portfolio of apps, including BFF and Official, address use cases outside of dating.
• The company is already notching high-20s adjusted EBITDA margins with plans for at least 300bps in further expansion this year.
• The stock trades at a very cheap ~5x adjusted EBITDA multiple.

Dating-app stocks have been tumbling all year. While tech peers have been rising amid a general buzz in AI, investors have lost confidence in the ability of the dating app space to retain users and encourage them to keep paying as headlines of "swipe fatigue" continue to mount....

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