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Bumble Overstated Revenue For Three Years, Made 300+ Accounting Errors
Online dating platform restates years of financials in late filing.
November 16, 2022
After announcing it would not file its quarterly report on time, Bumble (BMBL), a dating application, revealed it had misstated its financials in each of the previous three years. Though the company characterized the series of errors as immaterial, Bumble ultimately restated revenue, net income, and total assets— among a myriad other items— over various periods.
In the filing, Bumble revealed it had:
—Overstated revenue by $2.4 million, or 0.56% in the six months ended June 30, 2022
—Overstated revenue by $4.7 million, or 0.62% in the year ended December 30, 2021
—Overstated revenue by $2.6 million, or 0.49% in the eleven months ended December 31, 2020
Notably, executive bonuses are calculated, in part, based on revenue targets. Of Bumble’s three named executive officers (NEOs), CFO Anuradha Subramanian was the only to receive a bonus in both 2020 and 2021. It does not appear, based on a search of Bumble’s latest Proxy, that the company has an executive compensation clawback policy.
In certain periods, Bumble also understated net income and operating cash flow.
The company blamed the errors on the recognition and presentation of debt issuance costs and refunds from third-party aggregators.
The restated financials come a day after Bumble warned it would not file its latest quarterly report on time as it needed additional time to “finalize certain prior period adjustments.” In all, DuDil counted approximately 340 adjustments to Bumble’s financial statements.
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