Bumble misses on Q2 earnings, sees slight revenue beat

Yahoo Finance Live anchors Brian Sozzi and Brad Smith discuss second-quarter earnings results for Bumble.

Video transcript

BRAD SMITH: Let's talk about shares of the dating app Bumble, ticker symbol BMBL this morning. After reporting earnings and missing on the bottom line, they did see an increase in both revenue year-over-year, as well as growing their amount of paid users to three million. A lot to really break down here. There you're taking a look at the actuals versus the estimates there.

And so on the EPS side, that's where you saw that miss. However, on the revenue side, just a slight beat there. The revenue grew 33.2%, we should know, on the Bumble app. However, you saw on the Baidu app and some of the other revenues that they received, that declined by about 13.7%.

BRIAN SOZZI: Well, we're a lot-- we're very numbers focused here. But I want to note this, on the conference call last night from Bumble, they said they are testing monetization for complements and also virtual goods. Unclear to me what that means.

So if I-- if somebody likes me on there, I could buy them a virtual drink? I could send them a virtual Bud Light? I mean, it's weird. I mean, if you are on Bumble, please hit us up on Twitter because I'm very curious on how they're testing this, how this works. It's not something I've seen before. I don't need to be on the service. But again, it's interesting and more ways for them to make more money.

BRAD SMITH: I don't-- I don't hate that, though. Because if you think about the way that Bumble would be able to connect more people with the IRL experiences and transition some of the in-app features into an offline setting, which is exactly what everybody is trying to get back into right now, it's by saying, hey, you know what, Sozzi? We just met on Bumble-- whether it's for a best friend, or whether it's for a business contact, or whether it's for love-- hey, I want to buy you a drink. And--

BRIAN SOZZI: Why should I have to pay to complement?

BRAD SMITH: --you should be able to-- Well, I don't know why you should have to--

BRIAN SOZZI: Then come on. It is what it is.

BRAD SMITH: You should be able to send a gift, though, and redeem that gift. Say Bumble has partners that you can then redeem that gift at.

BRIAN SOZZI: OK.

BRAD SMITH: Like that's-- I think that's a significant play.

BRIAN SOZZI: I am with you. I should pay-- I should be forced to pay-- if I want to send someone a virtual Bud Light, I get that. If I just want to compliment them on a photo, I have to pay for that?

BRAD SMITH: Like, nice tie. Yeah.

BRIAN SOZZI: No. I shouldn't have--

BRAD SMITH: That's $0.25.

BRIAN SOZZI: No--

[LAUGHTER]

We can really go down the rabbit hole with this. I'm gonna not because I enjoy working here.