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Bumble: Invest in Love, Invest in Growth

Updated October 2024

NASDAQ:BMBL
$5.55+1.28%
Updated: May 02, 2025

Executive Summary

Invest in Empowerment, Growth, and Meaningful Connections

Bumble Inc. is the parent company of Bumble, Bumble For Friends, Badoo, Fruitz and Official. The flagship product is Bumble, a popular online dating and networking application that steps away from traditional dating experiences by allowing women to make the first move and feel empowered in doing so. Users can not only find dates, but they can also find new friends on Bumble for Friends and make career moves on Bumble Bizz. The company presents an intriguing investment opportunity due to its large and growing user base, ongoing strategic share buyback program, and potential undervaluation. If the market begins to fully recognize these strengths, Bumble's stock could offer significant upside.

Investor Relations

Investment Thesis

Overview of buy and sell case of the business.

Why Invest?

Key pieces of information about the business that you need to know about.

Strong User Base

Bumble has over 50 million users making it one of the most popular dating apps in the world. Whilst most of these users are on free subscriptions, Bumble’s engagement strategies have worked, with the number of paying users on the Bumble app growing. In the first half of 2024, paid users for the Bumble App increased by 15% to reach 2.8 million.

Clear Strategy

Bumble is focused on improving its business by balancing its user base, enhancing the customer experience, and refining its revenue strategy. This is reflective of a larger strategic reset that prioritises ecosystem health over immediate monetisation, positioning Bumble as a compelling long-term investment. The company are addressing short-term challenges like stagnating revenue and declining gross profit margins through a commitment to a share buyback program. With $209 million remaining on its $450 million repurchase authorisation, Bumble plans to repurchase about 25% of its shares in the next 6 to 12 months.

Generative AI, Generating Matches

Bumble is increasingly integrating AI into its business strategy to enhance user experience, optimise engagement, and drive future growth. The strategic appointment of Lidiane Jones as Bumble's new CEO, who has a strong background in AI and was previously CEO of Slack, highlights the company's commitment to making AI a core element of its future strategy.

Bumble is expanding its AI operations away from predictive AI to generative AI. Predictive AI, which Bumble has used historically, focuses on anticipating user behaviour and recommending potential matches based on past interactions and preferences. However, generative AI takes this a step further by making inferences and creating new content or interactions, offering more personalised and engaging experiences for users.

Catalysts

The key events that could drive investment opportunities and shift markets.

Near term

Execution of the Buyback Program

  • Bumble’s ongoing share repurchase program, with plans to repurchase up to 25% of its outstanding shares in the next 6 to 12 months, could support its share price in the short term by reducing the float and signalling management’s confidence in the company’s long-term prospects. If the buyback is executed aggressively, it might create upward pressure on the stock.

Medium term

Intensifying Competition

  • New dating apps targeting niche markets—such as specific religious, racial, or interest-based communities—are continually emerging, increasing competition in the space. To stay competitive, companies like Bumble are turning to strategic M&A, exemplified by Bumble’s recent acquisition of Geneva, a group and community app designed for people to connect around shared interests.

Expanding User Base

  • Bumble’s ability to grow its Monthly Active Users (MAUs) and increase user engagement will be central to its long-term success. Growth in international markets where dating apps are still in the early stages, particularly in Asia and Latin America, will be a critical driver of future revenue.

Long term

Generative AI and User Experience

  • Bumble’s ongoing investment in AI, particularly generative AI, will likely play a crucial role in the platform’s future. AI-driven innovations in matchmaking, content generation, and user safety could significantly enhance the user experience and differentiate Bumble from competitors.

AR & VR

  • As Augmented Reality (AR) and Virtual Reality (VR) technologies mature, they could be integrated into dating apps for immersive experiences, like virtual dates or avatars, creating new premium services and attracting tech-savvy users.

Follow the Experts

Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.

Grand View Research profile

Grand View Research

Market Research Reports and Consulting

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Expert Insights

article
“The global online dating application market size is projected to grow at a compound annual growth rate (CAGR) of 7.6% from 2023 to 2030”
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Lauren Schenk

Analyst at Morgan Stanley

1k audience

Expert Insights

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"last year’s slowdown was likely due to poorly-executed monetization strategies and overall economic challenges rather than saturation."
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Yahoo Finance profile

Yahoo Finance

Stock Market News

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Expert Insights

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"Bumble’s solid fundamentals and aggressive buyback strategy indicate a potential stock recovery if the market reassesses its value"
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Investor Materials

Access the most recent investor updates published by the company.

Key Documents

What Will Dating Look Like in 2024? Here’s What Bumble’s Data Says

Article

To help predict what dating trends in 2024 will look like, Bumble conducted a survey of over 25,000 members. Here's what the data says.

External Insights

A curated collection of third-party content relevant to the company and sector to help inform your investment decision.

Mission

Is Bumble Inc. (BMBL) the Best Affordable Stock Under $10 to Buy?

Article

We recently compiled a list of the 10 Best Affordable Stocks Under $10 to Buy. In this article, we are going to take a look at where Bumble Inc.

Team

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What the Pro's Are Asking

Here are the questions that professional investors are asking before making an investment decision.

How is Bumble performing compared to its competitors?

Bumble is performing well in the competitive online dating landscape, boasting approximately 3.7 million Monthly Active Users (MAUs) and a strong revenue of $355 million in 2023. It differentiates itself with a women-first approach, a focus on user safety, and diversified offerings like Bumble BFF and Bumble Bizz, appealing to broader audiences. While it faces stiff competition from Tinder, which leads with over 10 million MAUs, and Hinge, which is rapidly growing with around 1.3 million MAUs, Bumble maintains a solid position through continuous innovation, including the introduction of AI-driven features. However, it must navigate challenges such as declining gross profit margins and increasing competition to sustain its growth and market share in the evolving dating app ecosystem.

What is Bumble’s business model?

Bumble’s business model revolves around its freemium platform, which offers both free and paid services. Bumble offers several paid subscription plans that provide additional features and benefits. These premium features are designed to enhance the user experience and increase the likelihood of making meaningful connections. The company primarily operates in the online dating space but also includes social networking and professional networking features.

Is Bumble engaging in mergers and acquisitions (M&A) to stay competitive?

Expansion and growth were major goals of the company in 2024. To reflect this, Bumble is actively engaging in mergers and acquisitions (M&A) as part of its strategy to enhance its business and expand its offerings. In May, Bumble signed an agreement to acquire a group and community application, Geneva, that connects people based on shared interests. The acquisition is expected to close in the third quarter of 2024 and will boost Bumble’s position on connecting people, especially friends and communities. This move allows Bumble to tap into new markets and demographics while enhancing user experience and engagement.

What strategies is Bumble implementing to sustain user growth and engagement in an increasingly competitive online dating market?

Bumble is diversifying its services with offerings like Bumble BFF and Bumble Bizz, which attract broader audiences, and integrating innovative features such as AI-driven recommendations and video chat for enhanced user interaction. The acquisition of Geneva aims to strengthen community connections, while Bumble’s focus on safety features and empowerment messaging fosters a respectful environment, particularly appealing to women. Targeted marketing strategies emphasise inclusivity and social responsibility, alongside a freemium model that encourages trial and generates revenue through subscriptions and in-app purchases. Additionally, Bumble is exploring global expansion opportunities, adapting its offerings to local markets to further increase its user base.

Is the online dating market saturated?

The online dating market is increasingly competitive, with a proliferation of platforms catering to diverse demographics and niche interests. However, the market is far from saturated, and there remains significant growth potential as societal acceptance of online dating continues to rise and new technologies, such as AI, enhance user experiences. According to analysis by Morgan Stanley, around 70 per cent of US singles looking for relationships do not currently use online dating, reflecting a significant untapped potential user-base.