Bumble Inc. (NASDAQ:BMBL), a leader in the online dating industry with a market capitalization of $1.2 billion, has amended its credit agreement to extend the maturity date of its revolving credit facility. On December 17, 2024, the company, which is based in Austin, Texas, announced the extension of the facility's maturity to June 17, 2026. According to InvestingPro analysis, Bumble maintains strong liquidity with a current ratio of 2.09, indicating robust short-term financial health.
The amendment involves Buzz Bidco LLC, Buzz Finco LLC as the borrower, with certain subsidiaries of Bumble Inc. acting as guarantors. Citibank, N.A. serves as the administrative agent for this agreement. The original credit agreement dates back to January 29, 2020, and has undergone various modifications over time. The company operates with a moderate debt level of $631.9 million, which InvestingPro data suggests is well-managed relative to its capital structure.
Bumble Inc.'s decision to extend the maturity date of its revolving credit facility provides the company with continued financial flexibility. The terms of the amendment will be detailed in the company's Annual Report on Form 10-K for the fiscal year ending December 31, 2024.
The extension of the credit facility's maturity is a strategic move that ensures Bumble Inc. maintains a strong financial position to support its operations and growth initiatives. This action reflects the company's prudent financial management and its commitment to long-term planning.
Investors and stakeholders can expect to review the full text of the amendment when it is filed as an exhibit in the upcoming annual report. The information regarding this financial maneuver is based on the latest SEC filing by Bumble Inc.
In other recent news, Bumble Inc. has been active on multiple fronts.
The company reported a slight revenue decline of 1% year-over-year in the third quarter, with revenue of $274 million. However, the company's EBITDA for the quarter was $83 million, exceeding both consensus and analyst estimates. Amidst leadership changes, Bumble reaffirmed its financial outlook for the fourth quarter and full year of 2024.
Analyst firm Susquehanna maintained a Neutral rating on Bumble but raised the share price target from $6.00 to $8.00, citing the company's ongoing transformation of its core app. The firm also adjusted its future estimates for Bumble, largely maintaining the 2024 revenue estimate but increasing the EBITDA forecast by 1%.
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