Bumble posted quarterly sales of $208.2 million, an increase of 25.8% from a year ago. Earnings before interest, taxes, depreciation, and amortization (EBITDA), which strips out some items that may blur the profit picture, increased 24.3% to $54.8 million.
Founder and CEO Whitney Wolfe Herd noted in the first year as a public company, Bumble successfully executed on its core strategic priorities of driving scale and engagement, increasing monetization, and improving profitability.
Ending Operations in Russia, Belarus
Bumble said it was discontinuing operations in Russia, and removing all its apps from the Apple App Store and Google Play Store there and in Belarus. The company added the combined sales from Russia, Belarus, and Ukraine constituted approximately 2.8% of annual revenue last year. Bumble predicts the impact of the conflict, along with its decision to withdraw from Russia and Belarus, will reduce current quarter revenue by about $2 million.
Shares of Bumble are up 45% today. However, they’ve lost almost two-thirds of their value since they began trading in February 2021.
The Big Number: 5.24%
One-year inflation expectations have rocketed higher since Russia’s invasion of Ukraine, and the longer-term outlook has been increasing as well, according to a new daily index by London-based ICE Benchmark Administration.
The index showed the expected pace of consumer price increases over the next year rising from 3.5% on Feb. 1, to 5.24% as of March 7. The index is based on the trading of about $300 billion of inflation-protected U.S. Treasury securities and the $100 billion monthly market for inflation swaps contracts.
Inflation anticipated over longer six-year and 10-year horizons also turned abruptly higher since the onset of the Russia-Ukraine war. Rates of 6-year price increases are at 2.73%, and 10-year price increases are at 2.43%, well above the Fed’s 2% annual price increase target.
Inflation expectations are closely monitored by the Fed as evidence of whether its policies are keeping inflation psychology contained. If inflation expectations continue to rise, it could suggest a loss of confidence in the central bank’s ability to keep inflation at bay.
The Bureau of Labor Statistics’ Consumer Price Index (CPI) rose 7.5% year-over-year in January, the fastest annual rate since 1982. The CPI for February will be released tomorrow and is expected to show an increase of 7.9% from a year ago.