Bumble Faces Earnings Miss as Predicted by Alternative Data Platform
Many investors rely on alternative data to guide their stock selections, especially in institutional investing. These unconventional data sources—such as job postings, social media metrics, and employee satisfaction—often provide valuable insights into company performance, helping investors make informed decisions and navigate potential risks. A recent case in point is Bumble, where the alternative data platform AltIndex forecasted an earnings miss a week before the official report.
AltIndex AI Score Warned of Potential Issues Ahead of Market Response
In Bumble Inc.’s (BMBL) earnings report for the quarter ending June 30, the company reported revenue of $268.6 million, a modest 3.4% increase that fell short of the $273.2 million average analyst estimate. While paying users grew by 14.7% to 2.8 million, revenue per user dropped to $21.37 from $23.23 the previous year, indicating potential challenges in user engagement and monetization.
The earnings disappointment led to a 25% drop in Bumble’s share price over the past week, with the company’s price-to-earnings (P/E) ratio falling to 7.91, significantly lower than its competitor Match Group’s 15.15 ratio. This decline reflects a loss of investor confidence in Bumble’s growth prospects.
AltIndex’s alternative data had already signaled these issues. A week before the earnings report, Bumble’s AI score plummeted to an all-time low of 32, indicating emerging concerns. The score was influenced by a 20% drop in app downloads, reduced job postings suggesting a slowdown in growth efforts, and low internal employee sentiment.
Bumble’s Stock Value Drops Nearly $4 Billion Over the Past Year
Following the earnings report, Bumble’s stock has faced additional declines, now trading at $5.98 per share—63% below its price from the previous year. This dramatic decrease has resulted in a $4 billion drop in Bumble’s market value, reducing it to $960 million from $4.94 billion in August of the previous year.
The continued decline in Bumble’s stock value highlights the company’s ongoing struggles. According to AltIndex, these challenges are likely to persist in the coming months, suggesting that investors should be cautious about the stock’s short-term outlook.
