Bumble (BMBL) 27 Feb 242023 Q4 Earnings call transcript

Hello, and welcome to the Bumble Fourth Quarter 2023 Financial Results Conference Call. My name is Elliot, and I will be coordinating your call today. [Operator Instructions] I would now like to hand over to Cherryl Valenzuela, Vice President of Investor Relations. The floor is yours. Please go ahead.

Elliot. you, Thank joining Full for discuss Fourth Bumble's Thank XXXX us Financial and Year Results. Quarter you to With me today CFO are Lidiane Jones, CEO; of and Bumble. Anu Subramanian,

certain reflect call and to Before made subject These beliefs, to begin, I'd assumptions and to information expectations are everyone we us. uncertainties based risks and our like forward-looking statements available on current are today that this various forward-looking our statements. currently remind statements on

on revise we Although are of to any XX, we could press in to with including subsequent these filings to no believe after and factors Form forward-looking Descriptions materially results differ detail in that the statement reasonable, report changes call. our SEC, undertake discussed occur year ended are XX-K release statements risks XXXX, periodic for December that cause reflect and our earnings actual filings. from obligation expectations the this and these annual more our

our During on most should earnings non-GAAP the press as for available call, we from in These or and comparable Reconciliations in considered our a addition be available non-GAAP not substitute to Relations isolation with the certain I'll to ir.bumble.com. at today's measures. financial Investor results. in over GAAP section is which the to Lidiane. And release, measures of that, website GAAP it also refer are to turn measures

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Officer; talented team leaders driving our who'll future. we the be Finally, Officer. welcome instrumental and for Ali recently I'm X David Rayl as Technology excited Chief to Officer; to bring new as with Leblond Chief Antoine strategy our Chief vision Ard life, as People to Bumble's strengthened executive Product in

overseeing communication and user customer experience most recently Product along as Slack, Senior of platform, Vice Ali Slack's served and with at support. customer safety President

invaluable and tenure user Microsoft to of scale His previously several scaling experience Bumble. Vice of growth a businesses. and will growth innovating Slack's will at leadership a be that, held Senior As experience Ali's at at as effectively overseeing President founding prior Engineering across Software Antoine platform team, be driving Sonos viral XX-year to member served paramount.

David Success, at previously and the served Employee joins strategy of partner business Gap. leading as teams roles teams and Salesforce, Head he us people from where people Equinox and leadership across global served benefit in

our Chief of Selby has as brands reach companies and Drummond and extensive am promoted Selby to Snap investments optimize the of expand Officer Inc. performance announce been both the brand Finally, will for thrilled such to experience from oversee marketing her marketing, Bumble Marketing bringing globally. Vogue that and I to

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chapter The steps for we're the taking of set growth. our next today stage

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honored mission before in that of this passionate Bumble's focus. talented But pursuit I our vision renewed with express to I'm to it tremendously Bumble Anu, founding I turn and the be to team want and leading

I ahead that, the am our the to behalf to turn us, start. to journey exciting with a since on And been our Anu, incredible leading of who an shareholders. team customers, opportunity have close over realize ahead our our employees and has and partner of be it We I'll thrilled

a partnership, you, I'll to walk you afternoon, through full with Bumble share our and comparisons A for XXXX. Thank basis. in otherwise, I all first QX line year outlook good Unless results our full and XXXX Lidiane. users are Revenue by then about the quarter contributions increase XX% to our QX to driven welcome was forward continued in and stated both year increased million, look and paying $XXX warm and more revenue Badoo and our everyone. again in a year-over-year Bumble Bumble Total from apps. on outlook. XX% with Inc.

a geographic to mix of in ARPPU The driven growth increase growth by Within by we our declined well users offset combination markets, increased decrease active to in as added we optimizations increased growth Bumble users many XX% paying paying primarily result in of a to sequentially. shift. App's and individual XX,XXX XX% million. ARPPU users App paying from mix. users million, was in pricing The to users ARPPU. higher X.X Bumble achieved Revenue was penetration. X% App as paying $XXX X% and due top a payer of $XX.XX, consumable Bumble as

Other Badoo was revenue and million, App up $XX X%.

by Badoo's driven to update refresh make stabilization continue return user a meaningful We the growth, well-received to app's experience. brand and progress towards of and

encouraged Badoo by the App are to XX,XXX paying and are Other continued X.X business. in the We traction X% sequentially. we seeing million, grew up users

in contributions and in begun and metrics from App Starting XXXX, operating QX key users we've Other including ARPPU. of Badoo paying Fruitz

XX,XXX Other X% App Excluding Badoo and $XX.XX. QX from XXXX. Fruitz, users QX to increased paying grew ARPPU to

declined ARPPU year-over-year. Fruitz, Excluding X%

expenses. Turning now to

our the year consistent for spend in continued our and while discipline, infrastructure apps We leverage to driving with to line continue in support targets investing growth. with

the million. and revenue was And total compensation Total $XX up were and Cost items, costs and excluding noncash on XX%. a expenses for non-GAAP stock-based million grew $XXX $XXX costs and were basis, nonrecurring quarter. or of XX% to million GAAP expenses other

versus XX% the represents of million. in marketing percentage a As versus of period. $XX XX% period. was of XX% Sales expenses X% revenue XX% grew revenue revenue, ago the year year-ago to cost and in This

QX or a revenue million G&A $XX of million expenses was to in period. of $XX versus period. the ago were net compared XX% Product $XX or $XX the ago X% development loss revenue revenue were million compared of or year million million $XX of year. GAAP XX% to or in loss X% expenses million year last $XXX

related million $XX a As with QX outlook. XX%, of Badoo EBITDA representing adjusted year's was last our QX margin an brand. consistent of $XXX reminder, included impairment charge million, a to

$XXX $X.XXX by year to XXXX, Inc. with App grew paying for billion, guidance. users total Bumble X.X full We to users XXX,XXX For to a XX% line our from XX% million. year-over-year in more Bumble consecutive Revenue XX% than as revenue second grew grew year. million paying grew

of loss XXXX year was loss a million EBITDA $XXX was XX% to full margin, compared XXX million, Our points. $X up for GAAP million basis $XXX in net net Adjusted XXXX. representing

a cash to spending increase $XXX results Our sheet. us XXXX, also million free our enabled further and in disciplined XX% balance in strong to strengthening operating deliver flow

equivalents. the ended $XXX year cash in million with We and cash

During directly of from $XXX as left. our shares of had today's our the have of fourth we repurchased our $XXX repurchase remaining of repurchased the And committed to we worth authorization, very under shares million $XXX end we million million million authorization. QX, $XXX We including current Blackstone. program. call, quarter, stock buyback remain in worth At

Now to our XXXX. moving on outlook for

just are are Lidiane App's execution these that year our revenue working actively confident slower-than-expected XXXX the and our to to we Bumble mentioned, feel As and are resolve to adjusting start challenges. issues app-specific control, them. reflect we outlook within We

our the of road App, the half second along Bumble on that other will in map, expect growth reaccelerate We features of QX of product the with key relaunch launch XXXX.

year estimate be assumes the revenue rate total during to X-point we XX%. growth a Inc. will result, Bumble FX of As full a headwind X% for year. approximately XXXX, This

We expect X% to between Bumble App to XX% revenue year-over-year. grow

Bumble XXX,XXX. expectations includes year full revenue Our for net adds XXX,XXX outlook approximately of to App

strong actions gain margins. significant the us expanding transformation a we operating leverage and to around path goal continue side, cost the us our bold today workforce On put our to towards announced allow on

to drive reinvest future safety will which workforce approximately to be of engineering, this annualized reduction brands savings areas product million selectively in $XX of and from estimate growth. million, $XX we help We that long-term OpEx approximately expect

XXX year-over-year EBITDA of adjusted basis XXXX, for a points least result, margin expansion. expect at we As

expect outlook impact the of XXXX, $XX EBITDA primarily severance million and in approximately charges. other incur to $XX related excludes related of these In we to this transformation, to half charges our million first the adjusted and

XX%. For million, total X% QX, between rate we million representing and a to expect revenue growth $XXX between $XXX

between and a million expect We between and rate to be growth representing revenue Bumble $XXX million, App $XXX XX%. X%

adds Our at the in XX,XXX Bumble of adjusted $XX includes million, revenue EBITDA App of XX,XXX outlook range. approximately be between sequential margin estimate will expectations net We $XX and XX% to for million QX. midpoint representing the

we that exists online optimize In decisive attract work right-size are our and we've actions in have market will the leadership. ahead operating our accelerate and the we and swift already opportunity closing, model, realization our believe of taking while steps taken dating more team the us, to global that of new tremendous We beyond.

while our today long-term affinity a to provide will operator growth the build user with with significant to very upon, many that Thank with value brands, over for you. enable and us And strong our achieve of are mission it and I'll power confident foundation you turn execution for to The our shared shareholders we guiding us for the profitable that, the to years Q&A. of plans driving come. we

from Alexandra [Operator Sachs. question comes Instructions] Our Steiger first Goldman with

Great. Maybe one one for Anu. Lidiane for and

for the you biggest company. over ARPPU? either opportunity Bumble all, what driving few you laying in do or where is And growth of community? most terms think the the priorities for outside, in from underappreciated by investor currently the first do So user thank you next your additional unlocking months, But of see out for coming the

Anu one then And for the on guidance. 'XX follow-up

So I more in to and now went calling updated your QX of growth. do for about 'XX is assumptions the deceleration some a into ask want it guide pronounced that that

today business your also that on And you remarks? more about in challenges little your referenced So that a what execution view? context, could in like in is seeing could you the the you talk maybe bit are you informing prepared elaborate

overall. I tremendous honored thrilled at I to question. the am saw here leading I opportunity for organization. Bumble and looking to a came the be Alex, because be this you, company just to Thank

of my incredible a or users the from continues As XXX remarks, that years beyond is This million over company reached And have heard about has strong. course globally you've be XX over time. brand prepared an base. we the to the

ahead. came I a is I saw of in I because among our I to fact, see the here apps. across here, large when the innovate why it tremendous came In favorability portfolio. brand opportunity dating is reason best a lot online app opportunity But

near to over experience modernize relaunch to largest what we course And we speak to of of share, of in the us Bumble years. the And the last X here one going heard are in revamps you the as QX app do this is relaunch want broader So represents App. the to a term the completely audience.

what desirable We out that believe to customers. to opportunity I'm that's thrilled this to experience seeing again. product human, for And there's more a of a team get new lot be dating users create a resources piece more this experience help and be the take will of investing our our innovation connected for

that's So near-term perspective. from a

In invest as Germany, seeing The growth, markets Mexico tremendous to that. amount some of in a see as markets overall and targeted well France like international we're Spain, India, and to addition in we continue Europe that, opportunity we're strong to to like going invest to Western markets. continue where really

Long innovation seen term, I between of think huge haven't lack tremendous such category there's a in a itself. the lot a opportunity and of for I a disconnect innovation. demand

that And biggest when phenomenal that of customers. think we opportunity about our about, following it's think ahead. be what I investors have is thinking I should a

by had the they tell Bumble. the of of about Over me customers. how them stories couple meet of will And opportunity months, dozens many to have last I've been much impacted

met I grandma Bumble a week. last

people lives. carry their the in So of brand different parts

experiences. on we Bumble continue our really for with like the This with set are going in, that is us of base have to differentiated to of things where us We brand. Friends want bring part affinity what our strong I a down a can fact double we to invest to

the we the I'll Anu part investors pass us for to second question. deeply our that excited see. potential realizing But of the it are hope I So about

starting guidance bit, maybe Bumble little our break down so guidance. App just and the Alex, for changed Lidiane. Thanks, us from a what has with I'll prior Sure.

of markets, has while seeing are been funnel primarily QX in expect of So slower-than-expected less top than we see global normally that rebound has a start many we our the strong in usual past. to and our the the in seasonal year, U.S., the remained to pronounced the

see as revenue we Lidiane had at are end such in the of the prepared December, uplift newer have as which remarks, and they her of we not showing we been said incremental would Premium+, like they launched some to Second, that positive, products originally anticipated. while that the

so App to XX% for adjusting our full And the X% for we Bumble to are these revenue be reasons, outlook for year.

you've map And are swift revenue our with taking that and actions need campaign, half marketing about the by proceed we have the product a to second will in the that of app road the post as we accompanied we launch. will heard that in second we make year. expect the to that immediate of this are planned we And with the today, changes then the will to other map. product which excited we road of in slew half QX, accelerate features make to launch then relaunch on the be And the

for that year. we're the gives about thinking of a you how hopefully, So flavor the Bumble rest App for

We now Marok James. Raymond turn with to Andrew

is segmentation has could different you version a appealing the cohorts either weakened with users about on that or current to age some set by Or there users, that maybe that net I guess, that a when broader relaunch you audience you up? new talk So can of Are shore market other segments? the or bit? little of App elaborate Bumble

been means part that very completely younger. components are Andrew, into a of different of but tone a that continue innovation. customer a are experience joining customers to deliver, of what set us illustration, is we profile this different there's for has is are believe product serve deeply be overall. kind that of our base of that voice, the development. excited of today And opportunity of Bumble our brand great diving an a users already to completely about and the And to there parts creation, can we with different modern a the a different a that approachable question. We more that couple refresh also set best of We believe product one in

This little us is more market, going seen to headwind. reach, a where expand especially have allow markets that bit to we the U.S. in like

experiences focused really In really experiences addition I for of be important to is what been are things forefront and to core to that at that, mission all the is us. are going about, be putting of think our our going there release This has safety. women's other which to very the the

we that's are different sort very and customers that are going we of more capabilities optimizing We profile to bring that a be set of going of across set additional for creation, our customers markets. high-quality different really ensuring safety profile help So easy-to-use a these creation, things to process for segments more successful. balanced believe have

for And about we about so core, more and we're will This excited that. our reigniting is think really, own which us. growth expansion really drive

maybe more online Great. users a anecdotal discouraged bit for little pay a little related And services. younger bit, being engage you I reports with then hear and mean, to dating hesitant maybe about or

back you that be a Bumble changes would But I being to funnel you bit against directly where I and of for points of that outlined the you've lot able the push there you strong narratives So those your any guess, a about think hear? little spoke are relaunch. App still top

to and a lot natural searching. and a experience organic more love thoughtful Yes. people as how the way. the discovery And the come think there along I of that in But we be heard of as that about journey also there more a online discover flexibility No, set it's customers we want seeing, a well have bring certainly a to swiping is to generational great have users be into I've is have because are really we and that that dating, today we our point. and transition able and market. of paradigm our I users

the focused our launch experiences what QX are users, younger our Our goal really this want evolving especially set innovation be to just for and telling. is users, an based users. the And listening to as ongoing on start on of we

over differently you beyond. set personalization from flexibility younger an time there is what companionship, discovery to of think based love more of We expect can So this our and we organic users of meet approach to friendship, users. do a learn and need on opportunity

really that to that's product person following. own think the great the get our experiences, I is really of flexibility and a product -- of we you is So the I big going am be navigate believe exciting will a be most development different of one parts and part how category certainly being to

question comes next Our from Cory Carpenter with JPMorgan.

You curious being with role mentioned driving challenges How or the mentioned seasonal with your the other than earlier recent in and the call seeing of those Curious could play And brand the some Best you're Compliments, you in trends? past. tier the refresh. think lower-priced Bees product in side, the you like app launches XQ the Premium+. and But what the specific broader refresh rebound in much Bumble on U.S. less then that? the that's pronounced product what versus is industry of

data Thank and user Cory. has time. for all if of over been and pattern the Certainly, you, data download a slowdown -- payer there you've seen industry,

is have both that have a cohesive Compliments success. we heard you we of execution not to and of seen positive set deliver, them. really I, as specifically, one great us we of For that really challenges great delivered the want some internal Anu really have experiences pockets from but had

pieces really necessarily also only what have example not mixed results. launched we some great adding users Best Bees enhance which product to that and users, tailored a but that added for we but we're are of this that what keep ones experiences with think the is experience not of seen an doing end-to-end want we we've relaunch really is value. now for So benefit experience, have looking from is

is think opportunity AI portion set overall great we we a there but capabilities of our the that enhance experience. drive to there, want So that of

now a So lot aimed our of the whole, execution challenges as so is our feel be customers. cohesive addressing at experience will for to these that, very release going a

perspective, a and tiny let want on a it unpack of a Premium+ tiers. that From You different did in and tiering, us. strategy monetization touch we me provides to the set believe absolutely experiences, have for strong Different bit. subscription customers

we is certainly days. to that found we in What is really tested well -- So maintain. early model have we want our its that Premium+ one

enough sustainability we audience, wasn't a we have see And still expanded a lot of to we and is users There our other. of is tier as users. that the a broader differentiation to a that differentiation lot from one of found tier But there. not keep didn't our to with particular demand what there enough

drive users and So initial we we what are about so those differentiation there. be a beyond feel creating evolving users good with they the on very is higher-end that launch this that crisp sustain focused that with launch value will will we more can towards tiers the so

the larger or tiers tier, hurdles of we users' we of found the more tiers base was adding for The the higher-end put base tier pause our for own what have that is adoption a that -- on the addition we that base now. tier

the out from revisit the value that we the And this launch. get we'll we feedback of to get in as Bumble then into Our the base users coming and goal for Bumble some and App highest of set that tier simplify the launch. experiences is we set most so are experiences that we'll get ARPPU

So lots going on, but very, about excited this very launch.

Let Shweta turn Evercore ISI. me to Khajuria with now

through you to see on help coming as And year you. with for from marketing one QX about the How us you're Where the the the in think as for thinking you please you the product Anu, across innovation Lidiane, QX, then could product lowest-hanging fruit launches about spend? on think back do half? platform? you the

questions. the for you Thank

do immediately what friction. going is fruit, we're our In reducing points to of April most with of terms low-hanging launch

did certainly I that adding things that the of of One capabilities customers. is was just saw for our more have confusion we a that lot

so of can one is the the experience is why end-to-end. experience we really users for doing that that full like what we're this revamp So feel reasons a of

going So that, to we're address right away.

of that tell with capabilities consumer about patterns, XX coming forever. been that data here me customer doing the I've here. a the years in I've and now very strong got very, one for seen exciting from let I've past background. been all enterprise tuned have behavior, of But learnings you and safety what And I things X. think information we lot seen I'm years had from of been since I and of preferences, have product most XX many that years is day users'

of on lot of a a has our lot focused for technology that ML, been users. So safety

what sure That can because generative we LLMs. the you're us, to unique spend. and AI But of term and biggest about. all our but marketing talk potential that is not it that near to of about I hearing fine-tune with that Bumble. particularly use excited one We various one the to long is use biggest pass powerful technologies is to me for am that really can I'm and assets term, let only Anu all our about And

spend. quickly on so Shweta, Sure. marketing

Just our in want at have We of a leverage create highest to terms on get high we level, the more we ROI. spend item. to marketing that standards so sure we been saying, line We've intending consistently are to make efficient. want

leverage. that in So a compared terms some were in in where you as see to revenue, item of percentage line XXXX we marketing see XXXX of should

than of us the we year see first spend half should over in second in half the how more the of to expect terms the will the year. come year, In about of course you spend we the of

revenue. more QX revenue percentage to spend a our ramp well as a start QX And in ease up more QX spending as you'll to of will we leading percentage of as launch, up as then QX marketing starts up see in the revenue in So as and the well. into QX start

how marketing level high thinking we a about at spend. that's So are

our growth we ROI bar as our for for how a as for brand say, both think about Now spend, our marketing. for have we spend well we as always high

we on a as on So take that depending something that well perspective. market-by-market happening product is basis at a look as a from what's

So you'll us see that. to continue do

Our Ygal comes with from question Citi. next Arounian

Lidiane, about just I resizing. App, or how of you think you in expansion of in, the and accelerating level in reinvesting the question, talking got Can -- investment? this Bumble first the about investments The map on you're road terms margin relaunching you guess, product on right what about what coming to level transforming kind the of investment and, general. talk and just framework cost how you the the of Bumble, you're significant in

you little try And what's on of then, the on color seen road that there what that and just ramp BFF up to or bit well. on things to guess, plan product more as a some accelerate the map I get to do there also, you've to

of the Lots that with us points the tackle brand them. with to there, I Bumble, Great. that the for try opportunity me customers great much Coming time. bring into dating. have base our beyond ability for us serve especially is that a of so let of retaining our we that longer the question start experiences we saw immediate just create can It's and period portfolio customers to a to customer Yes. with along really

friends from to provide official cohesive a So dating experience. to and really

as So picture that our vision. directional

of all a That day difficult our has acknowledge been framed from the heard transformation you this is that us Bumble. how want And for at today we've foundation today. I employees to of

goodbye have saying a We today. in to colleagues what lot of a played Bumble making is it role big that are

have that appreciate done employees for our So I us. all

with build that gain investments. Antoine transformation how at how that and been of can And our But so of we into know most they as amount of can. welcome innovation vision a our Ali that that the that thrilled scale, so we from functional back organizing us and do resources to customers to foundation bringing help the product and this is this and right organize has our we're fulfill I'm that. model the experience the leverage we our foundation And have technical quickly as for to platform leaders realize to

transformation see in on decision-making based reinvestment, our product focused the our opportunity is of We've agility. more the part mind, biggest really of And some we've and do and centralized some engineering what into all of to in into decisions terms that we part our allow quickly speed question, a for resources areas growth. we go the with big more drive to effectively. to want second And of where investments reallocating of your of us

on into that see more in set safety a innovation so the can for segment, innovation Bumble data of and transformative we Friends. And organization, AI, truly we our and talent growth to dating drive more the category more bringing into more so

small paradigm we that reason to communities. and a for as the unpack using and comfortable And just about one-to-one me is we a paradigm. is have more of users there match strong BFF And let making that BFF Friends is really same Bumble that a following. do that what Bumble So the bit. for for that for lot for little have but just with to has building a when had really friendships, we that been And set shift paradigm actually dating. you're the want finding are limiting

of And truly platform. our really are hard part to is with customers our other. It's connect this love being telling. each what They

to months the our And forward really to strategy. going as more really investment looking of we I'm sharpen that. sharing the overall accelerate all in coming are you we with So in

comes Justin KeyBanc with Capital Markets. question from Our next Patterson

good has for of Jakubiak Maybe job done on Justin. start, Badoo Miles business. Bumble to a the Lidiane, stabilizing

to seeing business, of the And business -- full the macro just revenue broadly, and feel guidance, maintaining just how puts guidance? macro you the what then more just relative returning it takes how environment you And of the the to that to a year confidence within to macro on level factored And is seems the about the then environment maybe XXXX? current do equation? Just factored stabilization important end on more and that the are part as start? in becoming growth that that on

the that satisfaction. in continue overall stay transformation. we're to And as relaunch excited learning year. last coming our really with to steady Thank engagement, steadier progress the made of you, about and improvement it's through that the that results, the a been to a all on the And have And We're Miles. gone It's to to been you're focused seeing It's growth company already well. going of really Badoo our business. there. been customer the team has fascinating we transformation going

as has believe part delivering to and We it's a which customers. focused confident we've because dating, very that of really important in resonating push strategy, called you on forward well with it's really believe continuing out. business, We our been a our core of that

us to category listen of make. macro deeply color going that really for a do provide and make investments environment? a that overall. In the I into we we want do want a but the little we is see to massive the more be But call macro, focus out to certainly our Anu, to Anu, customers of really opportunity And -- I'll the in terms terms to bit pass I into you key that decisions to it

Sure.

So before context on talk macro, Badoo's it we about We've in guidance. touch follow I performance. about on comments the I with up very pleased been because to didn't Lidiane's wanted Badoo of

performing has growth of And stable we're top well. As strong several growth. it's we've markets, seeing many its said, It metrics. in across

-- to how last overall changes in continue we we've now other made about guidance terms of to from the not any performed, our So Badoo it. pleased assumptions very had be provided and our we when to So

this in Badoo turn And of throughout adds year, is starting being As to net quarter. a terms we adds all from you've net to to positive. positive as Badoo well, expect see seen flat every perspective

the with there. pleased performance very again, So

in thought some our macro obviously In how top-of-the-funnel we trends macro in pronounced. more seeing primarily impact we've I our earlier, where of as in are mentioned guidance, probably is the slowness the terms U.S., about

well. are We younger as we've it, our seeing as customers said before, with

playing softness is an we some seeing. are element macro do So that think into that there we of the of

progresses So assumptions we it we've around the today. of are what how of rest seeing year think terms in the through made we

core of the ARPPU penetration And to Lidiane's that Bumble ultimately us half with job our customers, heavily the able really what dial in about we and up happens goal to the the give is starts year. payer is are done making possible we product to see on when the through second that's and customers resonate in focused then because and from the you'll that experience. be the to that's best turn of the perspective all our And the year, are revenue -- this talk sure product App's we point, relaunch what and terms in

Benjamin We now Bank. Black to turn Deutsche with

in market, online obviously First, the even are just that Lidiane, a saturation. on picture bigger dating There for approaching general. you it's question concerns maturity,

contemplating on gave what role the you're of Bumble, end very is attractive? that confidence the still So see taking market CEO you you and growth specifically at that when did

Are curious leverage about of to you allocation It some a hear And be more would great for just policy capital Anu, given broader in fund potentially on share. sort to of be a then open the update, your to one taking of changes perhaps too. I'd that. initiatives? just hear to bit sort leadership

that globe. considering actual I and But so disconnect the of you the about so where are Certainly, positive. was The are read was find be I bearing an category as and here to of data to. The mission for billion of felt create question. single are want they especially if the through those the taking look to demand for this job, strong, serving had a brand, really company. not you lot interesting disconnect. at that I fundamentals Yet around the thank the the Benjamin, it's products I connection yourselves set people compelled most that That financial as the experiences connections role. continues what Bumble, strength the about that love at the well, X way excited users got me the reports

the really But focused We company. have of currently when detail is our Apple I'm drive bring category. the believe customers fresh it perspective iPhone, category. to meet about we're we ] meet there. the are our [ was why on entering polished our someone a the I smartphone so of to change, were is can people and to launched users the there. needs to and talking And mature demand that believe also innovation excited we just users experience certainly, The that a It it.

truly excited truly, being here. about So

on one, the Ben, which of time capital focusing that organic been the just reviewing a allocation that a spending is, are past our started business. the allocation all in still given have we focused on, we on number themes I've are Great. you lot policy. high of quickly very growth much the since themes mean our she At I level, opportunity. capital

high, high be commitment terms continue back seen. to us. shareholders in M&A our about M&A. you've for lastly, very bar continues as returning thinking We for opportunistic very the Again, be to of And to to is cash

in well. XXXX where buy to into directly and we've as We did from the QX, transaction bought we continued shares Blackstone,

to So to continues our around continuing commitment returning interest see we be are are of rates. high. Obviously, the in markets terms cash where

cash We benefit a feel have and we sheet. the balance being perspective, a very like accretive strong from pretty of we have

and the we'll go all reviewing more through we we provide year. So are options, the updates as

from with Ken comes Gawrelski Wells question Fargo. next Our

the -- Lidiane. you maybe What -- when that you what sense a you do? you you us and could give to out picture what to First, you're about applying AI Could How you of just partner? looking the about capabilities bigger there, potentially going talk opportunities talk are to for setting just in-house? need you're accomplish build versus have

marketing. a in then U.S.? Tinder is you seeing on XQ, your step-up funnel top especially has more from tactically, when and of Match, And in the about one, maybe the second the little Tinder a bit indicated XQ marketing softness any talk the you additional Are in in competitor impact

for Thank that question. you

with related AI. portion to So the first start let's

success As I most part drives an the potential positive is is immense have for mentioned that us exciting we data for of preferences, our untapped what related users' this amount of customers. earlier, to behaviors,

amazing tremendous, So insight to see. a tremendous in-house, amount been which has of just

launched a detection to AI accounts AI Separately, innovating recently been Bumble we capabilities more. and so hasn't lot has that fake really long much in in It for new Bumble. of time. and a been there's of photo launched,

capabilities So can of foundation on today we have ML and well. as we AI already lean exist amazing an that that

believe can in through augmented set large So what been that but capabilities have will this on also users we to have, of help coaching not vendors what of we we several partner language lean data only early we set want really we the pilots do is and with and experiences. to advance model

And just amount opportunities so space. there in this a tremendous think near-term we partners of is with

we Now believe time. AI safety and a because -- our in long of innovate will with is be to we principles, a there for longer-term continuing vision,

so of ] this healthy and creating think I value accordable to unique relationships of there's to lot set in relationships and lead and principles forth. a communities [ that fully

a innovation from of see will there. you So us lot

terms of always in in environment That's case. the we always. been pressure, have a been Now competitive competitive

is to prioritize our really focus Our customers.

first that and companies customers think focus I the foremost. strong are on ones

Bumble, investing So of is our experiences is in so is set markets again, focus experience, for which safety now our product across and right customer women's overall our our to key differentiated marketing, our what forth. and meet

our experiences. So to help meet fully control our in that feel we certainly our it's customers

turn to now We Curtis with Nagle of Bank America.

the follow-up audience. to First guess, this one, being you like not Actually, enough then a Premium+. tier to Anu. a I Lidiane, appealing? And for of, more tier quickly wanted I enough understand just to just broad I point are back it, the differentiation to go to envisioning guess, to adding what quick justify I make

else that anything brand going or the mix in Was drove shift on? Just what a mostly ARPPU weakness?

Yes.

start very There's us. that me interesting with with dynamics Let our Premium+. for higher-end are two tiers

is first unlimited everything capabilities a take or they of more users higher-end want when tier. The

the ] us. that dynamics expand capabilities customer that [ we're that looking swipes, So confidence want So getting drives of set what highlights? that Is really to of we gives possible at, the it SuperSwipe, best that's set important certainly customers of experiences? of insight number really services from they're most the

drive what's might want information users. And experiences. profile. insights of higher The differentiated with with know there are users what to that second lot AI have resonating for people are we believe more is seeing piece a their some about us our for opportunities We about success

looking at higher that that's Premium+. one we're differentiation for investments of So category

we're looking the not going to we're great across only of capabilities as be differentiated well. at but creating ensure entire set two value certainly to this streams that these so And app

But between And individual said of ARPPU. in function we a ARPPU to increasing I leading on different in sure. is question, an to focused my like being continue Yes, largely the negative. said, remarks, it's prepared like shift on -- that market, I be ARPPU overall mix geographies

work. existing And We up. see you pricing consumables, continue rates offerings additional as like ARPPU attach be optimization users to we from for go doing higher also see

App. really in seeing Bumble reflected overall for what So the ARPPU that's you're

from comes UBS. today question with final Our Chris Kuntarich

the see savings. Can the accelerate reinvesting of that bit talk about what the $XX need business? to reinvestment, of million $XX just would the Just on you're you million in to restructuring amount a you the

the there. about to tell me talked a unpack reinvestment level, from more high data. what we've let safety, AI, a Yes, -- going you let specifically me But at we're do

the terms growth flexible Our But to focus capital and on and our in going from really or perspective. our near to dating to talent term. accelerate said, technology we're evaluating we from AI in that vision be as goal allocation, assets want is hire a of will organic Anu

really So innovation. AI invest we to want on

in to are makes humanly have I be We learn mentioned we that users AI what there help earlier, themselves. invest ensure started to human pilots better our As AI users. want for some we and really to more that already exciting

We are here. sake of not building AI the AI for

our and certainly ability pilots is consider there investments So fine-tuning resources that. that, If very our to will are the much accelerate about that. acqui-hire we some to

But because bar have that. to the experience super be going be to want customer point, like Anu's to paramount any is behind methodical high we and evaluation a principle

customers The I helping is one offerings. from second than ability our piece of of of just mentioned this more gain accelerating our reinvestment value that

for going platform to building might that's be from So Bumble. to user interesting recommendations users focused what to are on a provide get allow us we for more else

you were we bring recommend are our Friends, to you seamlessly to we on -- Bumble on expand try allows So And you for to Bumble that to Date customer date, for really Friends. seamlessly. Bumble go we into as And if may we carry experience on us as going and you that base for for focus a Official.

So the of and AI, And of have we're in great hiring data that we'll fastest people lot really means That do a excited certainly, that reinvestments. to experience way. about this our teams. possible set safety talented

this for Ladies your thank Fourth We'd to our and Conference and you Quarter Q&A concludes Call. Results participation. today's Bumble gentlemen, XXXX like Financial

now your lines. may disconnect You