How Hot Is Bumble Stock?

It doesn’t matter if you’re active on dating apps or not: Bumble (BMBL) stock is worth paying attention to.

After a very impressive second quarter of 2021 — where Bumble showed all sorts of promise on the New York Stock Exchange despite the impact of the COVID-19 pandemic on both the stock market and the dating scene — all sorts of retail investors and traders have turned their eyes (and their investment portfolio) to the ever-popular dating app.

Turns out, Bumble might be doing more than just ensuring a future for couples who meet on the app: It might also spell success for the future of its investors as of late.

Bumble’s Sales Rise Impressively

Over the past year or so, Bumble’s revenue has been steadily and dependably on the rise. It all began back in the tail end of 2020, when the company’s revenue rose a solid 31%.

From there, in the first quarter of 2021, revenues rose once again by an even greater 43%. Then, in the most recent numbers reported by the company detailing the second quarter of 2021, revenues rose even higher: an impressive 38%, bringing the total quarterly revenue to $186.2 million.

This was significantly more than what expert financial analysts had predicted: they called for $177 million, and Bumble exceeded that by almost $10 million.

By the time 2021 comes to an end, Bumble expects to see a total annual revenue of anywhere between $752 million and $762 million.

Compare this to last quarter’s annal revenue prediction of $724 million to $734 million, and it’s clear to see Bumble is surprising even its own analysts.

Bumble User Growth Not All Organic

A big part of this success for Bumble in recent quarters has to do with the app’s user growth. The company has seen a 34% increase in paid users in the United States and as high as 200% in parts of Europe.

This comes from the integration of both Bumble and the company’s recent acquisition of competitor Badoo, which we’ll touch on more below.

All in all, this user growth and increase in paid users has driven Bumble stock sky high, with both the company and experts alike predicting this increase will only continue to rise in quarters to come.

New Bumble Features and Products Power Growth

What’s bringing users to Bumble in droves, though?

The company believes it has a lot to do with the introduction of various new features and products over the past quarter or two.

This includes the reintroduction of the Badoo app, for starters, but also includes things such as Bumble’s BFF feature, which has seen a 500% increase in use, and various other changes to the app that makes it more accommodating to users who are hoping to connect with others and comply with their local COVID-19 restrictions at the same time.

The mobile app’s users appreciate this innovation, and it has positively impacted Bumble stock accordingly.

Bumble’s Competition

It’s worth noting that Bumble still falls behind Match Group’s ever-popular app Tinder, but this doesn’t mean that Bumble is somehow less substantial than Tinder on the stock market.

As a matter of fact, Bumble’s unique approach to the competition helps to explain why the company has managed to grow so significantly lately: You see, they prioritize focusing on the user experience over beating the competition.

This not only shows users that they’re being heard, but shows the competition that it’s more important to make the app the best it can be and let it speak for itself through word of mouth instead of simply trying to copy what the other app is doing and hoping users will come to you that way.

The competition is there, to be sure, but Bumble’s more concerned with making the dating app experience better for the user.

Badoo and Bumble

Badoo was already the fourth highest grossing dating app when Bumble brought it into the fold at the end of 2019. Since then, Bumble and Badoo have focused on growing as individuals instead of as two parts of the same whole.

This has proved to be incredibly successful for both companies, allowing Bumble to do its own thing and Badoo to do the same.

The two apps have their own sets of users, and instead of trying to force them to come together, Bumble has been wise to allow them to remain separate. It’s a choice that continues to work out well for them on the stock market.

The Impact of COVID-19 on Bumble

One would think that COVID-19 restrictions would harm the dating app industry, but as a matter of fact, it seems to have only helped Bumble, especially in the long run.

With users sitting at home and feeling lonelier than ever, it seems that more and more people are flocking to dating apps to connect with people when going outside and meeting new people isn’t always easy or safe to do — especially with the rise of COVID-19 variants as of late.

Bumble continues to grow more users, no matter what’s going on in the outside world.

The Bottom Line: How Hot Is Bumble?

Looking at the company’s exceptional financials in past quarters and the predicted success in the quarters to come, it’s clear that Bumble stock is as hot as can be right now (and, if all goes according to estimates, only going to get hotter).

From its increase in paid users to the firm’s never-ending pursuit of new user-friendly features and products to their handling of the competition, Bumble and Badoo’s success is no accident: It’s a result of impressive leadership, great user experience, and solid numbers to boot.

After only going public a mere six months ago, expect to see Bumble stock’s temperature continue to rise.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.