Bumble Inc. (BMBL) Earnings Call Transcript & Summary

May 23, 2022

NASDAQ US Communication Services Interactive Media and Services conference_presentation 35 min

Earnings Call Speaker Segments

Cory Carpenter

analyst
#1

All right. Great. We'll get started. Here today with Bumble, Tariq Shaukat, President, previously at Google Cloud and Caesars. Bumble operates 2 of the top 5 dating apps globally, Bumble and Badoo and recently added a third brand to its portfolio with the acquisition of Fruitz. I'm going to read the safe harbor statement very quickly, hopefully. This presentation includes our comments and answers to questions, may include forward-looking statements. These forward-looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs, assumptions and information currently available to us. Descriptions of these factors and other risks that could cause actual results to differ materially from these forward-looking statements are discussed in more detail in our earnings press release dated May 11, 2022, and our filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2021, and our subsequent periodic filings. That was my first time doing that.

Tariq Shaukat

executive
#2

You did that very well, Cory.

Cory Carpenter

analyst
#3

Awesome. All right. Well, thanks for joining us. To get started, I kind of want to start with the TAM and U.S. growth. There's been more debate recently just in terms of maturity, penetration of online dating industry overall. So how would you frame where we're at in online dating penetration? How much growth opportunity do you see, especially in penetrated -- more penetrated markets like the U.S.

Tariq Shaukat

executive
#4

So first of all, thanks for having me here. It's wonderful to see you all. In terms of the TAM, we can start with the broad strokes of there's lots and lots and lots of single people in the world, right? And everybody wants to meet somebody, everybody wants to not be lonely. I think the pandemic has shown us that people -- the desire for love and connection is something that exists in the best of times and in the worst of times, right? And so we do think that there's just a tremendous amount of room for this industry to grow. If you think about online dating in particular, we don't think that we are at any level of maturity yet. If you went back to 2019 in the U.S., there are studies that show that about 40% of people in the U.S. were meeting their significant other online. We think in the pandemic that accelerated quite a bit. And there's really no reason why that number shouldn't be 100%, particularly with some of the initiatives that we are leaning into around how does an online dating experience become a companion to your off-line dating experience as opposed to this binary, either you're online dating or you're offline dating, right? We think that this becomes something that is much more hybrid, much more complementary to your IRL dating experience. So we think that, that number -- I don't know if it's now at 50% or 60% or 70%, but we know that more people than ever know someone who's met online. There's more weddings every day of people who've met on Bumble than there was yesterday, right? And that -- as that grows, the word-of-mouth builds and everything I'm saying is further ahead in the U.S. than in any other country in the world we live in. So there's tremendous upside, we think, in markets like the U.S. but also as we think about growth in Latin America, in Western Europe, in Asia and Africa, we just think that we're still in pretty early innings.

Cory Carpenter

analyst
#5

So macro, certainly, a lot of focus in recent weeks around the health of the U.S. consumer. What are you seeing on the macro front? How resilient do you expect Bumble and online dating to be in a consumer slowdown or recession?

Tariq Shaukat

executive
#6

Well, I think -- I mean, it's still very early days, obviously, with some of the inflationary news that's out there. What we can say and what we have seen is that online dating and Bumble in particular have been very resilient through the pandemic as people have been -- as there's been lockdowns, people went online to date more. When lockdowns eased, we still saw engagement inside of our apps continue to be at very strong levels. We didn't give back any of those engagement gains. So there's clearly something about the desire for connectivity that remains important to people. And particularly in trying times, people want to meet other people. They want to connect with other people. They want that outlet to the outside world, and they don't want to feel like they're isolated. And in a way, online dating, we think, is one of the best ways for you to break out in a tough environment as well as in a strong environment. So we do think that the evidence so far has been that Bumble, in particular, has been resilient. We think that there's every reason to believe it will continue to be resilient in a more challenged macro environment. Our other app, Badoo, that you mentioned has been a little bit of a different situation because the user base on Badoo is a more economically sensitive user. And we saw during the pandemic that there were some struggles that those users had, again, less. Once you engaged in the app, your engagement remained quite high. It's just a question of how many people chose to engage. So we do think that in the more sensitive parts of the economy, you may see some issues. Bumble again, everything we're seeing right now is a high level of resilience, and we don't see any real warning signs at the moment that, that is changing.

Cory Carpenter

analyst
#7

Okay. So Bumble app product, I want to spend a good amount of time on this. You listed a lot of products in your pipeline at 1Q earnings a few weeks ago. And where are you most focused on the product side? What are the maybe 1 or 2 features you'd point to you as most excited about?

Tariq Shaukat

executive
#8

We -- so we have -- our product teams and our engineering team has been very busy. We have a number of different areas of emphasis, I could call it, and then I'll dig into a couple of the product areas specifically. So we are very much focusing on the in-real-life experience that I mentioned before, this hybrid experience, people are going to go out. And now that COVID has receded or is receding in a number of different markets, we think people are going to go out more, we want to make sure that our apps are as relevant when you are going to a bar or you are going to a park or you're going to a show as it is when you were locked up at home, right? So there's a big area of focus around in real life and that hybrid experience. There's another plank, if you will, of our product strategy that is very much focused on that pre-match experience and really how do you stand out from the crowd. We have so many people on Bumble now that a woman, for example, on Bumble can get lots and lots of inbound interest. Lots of people who swipe right on her. The question is, how do you let someone stand out even more there? And how do you let that person find who are they most interested in matching with? So there's that sort of pillar. And then the third piece is around monetization. And the way we think about monetization is really about how do we provide more and more value-added experiences on top of your general experience so that people more and more people want to pay for it. So that's the broad buckets. If I had to call out a couple of things that we talked about in our earnings call, I'll talk about college as an example. College -- Bumble really got started on college campuses back in 2014. It's a real source of strength for us. We have 600-plus college ambassadors and over 150 colleges around the U.S. But our product has never really been tailored to a college audience. And we're now starting to think about and I think in time for the next school year, you'll see a number of different products that make the experience on the college campus that much more relevant, that much more useful to a college student. So that's one area of focus that we're talking about. We have another product that we announced called Compliment that is in test right now in a number of different markets. And the notion of Compliments is it's a way for people to stand out. So it's not starting a messaging conversation or anything like that. It is if you see a profile, if there's something that catches your attention that you want to call out, you want to send a message about, you can send 1 message about that, whatever you see. And that's why we call it Compliments. Hopefully, it's a kind positive uplifting message that helps you stand out from the crowd. And we think that provides more fun, more engagement, more ability for you to explain or to illustrate your personality. And things like that, we think, are very, very, very exciting. Virtual goods is a third example I would give, where instead of the super swiping somebody, you can now send them -- again, this is in test a virtual drink or a virtual sunflower or whatever type of virtual gift. And what we see is that Gen Z users are very, very engaged in this, right? It doesn't just become another monetization approach. What it is, is it another way to get engaged, get excited about the experience and to build that kind of positive flywheel in the app.

Cory Carpenter

analyst
#9

I want to stick on Compliments. There's been a good amount of buzz on this product.

Tariq Shaukat

executive
#10

We appreciate the beef metaphor.

Cory Carpenter

analyst
#11

So I mean I think some people view it as a pretty big deal myself included. It's really the first time a man is able to start a conversation on Bumble. Of course if that's you are reciprocated. How do you make sure that this fits with the ethos of the Bumble brand? What are some ways you're testing to ensure this?

Tariq Shaukat

executive
#12

So it's a great question. And I want to be clear what it is and what it is not. So again, on Compliments what you can do is you can essentially react to send the message about some element and a profile that you see. So whether it's a photo, whether it's an answer to a prompt, et cetera, you can say, "Oh, they're my favorite team or that sounds like a great place where is it? " Or that sort of thing. And it's one message. So it isn't really -- the whole core of the Bumble value proposition starts with this idea of women to make the first move that women initiate the conversation. That still remains true, and we're very keen to ensure that women in heterosexual relationships maintain the ability to initiate that ongoing conversation. What Compliments does is it allows men and women, but we think it will be particularly interesting to men to illustrate more than their profile can actually show, right? So if your profile shows that you really like the Steelers, right? But somebody on their profile is saying, no, they really like the Yankees, that is me right there. You can say, even though you highlighted one thing, "Oh, they're my favorite team, too or I hate them, but I'm willing to look past it if you're from Boston, right, or whatever it is." And so we think it's a way to add to your profile as opposed to initiate a conversation. But everything we do goes through this filter, if you will, this lens of, is it right for our users in general, is it right for our female users? And does it add to the brand? Or does it detract? And we won't do anything that detracts from the brand. So far, the test we're doing show that people really like this. It adds to engagement. It adds to that prematch engagement and we think it adds to higher match rates and success rates, although it's a little too early to tell.

Cory Carpenter

analyst
#13

How should we think about the rollout? I know it's still quite early in testing, what could a broader rollout look like in terms of monetization? And what are you thinking, is this part of a subscription bundle, ala carte, maybe both.

Tariq Shaukat

executive
#14

So in terms of rollout, the way we handle all of our products is we don't believe in a big bang rollout anywhere. We believe in test, learn, expand and doing that in a very rapid cadence, right? So we generally start with markets that are important, but not make a break for us. So with Compliments, we started in Australia. We've moved that to Germany. As we get more and more proof points, we will expand. There's not a time line per se for expansion. There's a target date, if you will. But if we see things are going ahead of plan, we expand faster. And if they're not going quite as planned, then we will slow it down. Our hope is that Compliments makes it to all of our major markets sometime this year. But again, we'll see how things play out. You always learn things you didn't expect, right? And our goal is to make sure that we land -- we focus obsessively not on launches, but on landings as we call it. It's not a question of when does it get to the market? It's the question of when do you actually land it somewhere so that users are using it and adopting it. So more to come on that, but we've got pretty high aspirations for the product. We just need to fine-tune it in the right way. In terms of monetization, we're not really baking anything material in at the moment. But you can imagine this being both part of subscription and a la carte offerings, I think it lends itself most to an a la carte offering, but the ability to buy some subscriptions that give you unlimited compliments or something like that is certainly there. We're focusing right now on the user engagement part, not on the monetization piece.

Cory Carpenter

analyst
#15

So subscription bundles. You alluded to college. Right now, you have 2 tiers, Boost and Premium. Premium, the more recent one and quite successful. What are some examples of segments that you see opportunity to create bundles for maybe beyond the college example. And then I think a lot of these are at lower cost. What do you think about the potential for a tier at a higher cost, given the majority of your users were already on your highest tier?

Tariq Shaukat

executive
#16

Yes, both great questions. We see a lot of opportunity for segment-specific pricing. As you said, college and Gen Z, so both recent graduates as well as in college, we think have slightly different needs. And our bundles are designed for the average user, if you will, as opposed to these segments. And so segment-specific pricing is really interesting to us. Another example is we know that recently divorced people have different needs inside of Bumble than folks who have never been married, as an example, who are still in college. And so as we think about that, there may be -- we have a feature called Incognito which is built into Premium. It may be that bee line access is not as important to them, but virtual goods and incognito are, right, as an example. So you can see there being lots of different segments. Like that, we think there's a young professional or as a recovering McKinsey consultant, right? We think there's a frequent traveler type of package that may include travel mode and may relax some of the restrictions we put on in my heavy traveling days, which may be coming back. I'd be in 2 different cities in a week. Today, you have to turn on travel mode for 1 city at a time, right? That may not be the right thing. So we think there's lots of opportunities like that, including to your point, Cory, at the higher end, we know that there are some people who pay tens of thousands of dollars for matchmaking services, right? There's no reason why we couldn't look at what that might be like on Bumble. We have no plans for it at the moment, but we certainly think it's possible over time.

Cory Carpenter

analyst
#17

Last one on product, virtual gifts in Bumble, IRL. What's the latest on those?

Tariq Shaukat

executive
#18

Okay. So virtual goods, we are testing. We actually decided on this one to test it in the U.S., but in a couple of cities. And so we are actively in test in a number of cities, very encouraged by what we're seeing. We are seeing high levels of engagement, certainly higher than we expected with Gen Z users in particular. So the notion of -- it's not just they're sending them but actually sending them seems to lead to a higher level of engagement in the app in general, right? And it's still early days, but the fact -- the idea that you can send a virtual good, maybe there's a monetization opportunity for us down the road on that, but that it increases your activity in the app, Particularly for Gen Z users, we think is very encouraging. And we are starting with a relatively limited number of virtual goods, but you could see over time that number expanding if this is successful. So we think there's a lot of places to go with virtual goods. We're just trying to -- getting that mechanic right, so people don't think that it's creepy and that people think that it's very natural and it's very easy to use is what we're working on at the moment, but signs are very positive. Bumble IRL is really exciting for us because what Bumble IRL is it is basically saying to my earlier point, that we want Bumble to be a companion app, if you will, to your real life dating experience. So what we're trying to do is to help you unlock other singles events and potentially meet up with people that you're going to meet at these single events. And so that could be -- we've announced partnerships with SoulCycle, so there's singles bike rides in partnership with Bumble. We've announced that there are certain concerts, right, that you can go to and have the singles seats, if you will, right, that you can meet up with. There's a whole number of different things, whether it's with Topgolf or SoulCycle or other partners that we're very excited about. And so that -- there's a product element to it, but it's as much a marketing element -- marketing program as well.

Cory Carpenter

analyst
#19

So we're going to come back to Bumble International, but I do want to hit -- I want to make sure we have time for Google Play. A few things going on with Google. So look, last time we talked, you were in full compliance on the Bumble app. You were still working through some issues on Badoo. There's also been a few changes happened since the last time we talked. So what's the latest here, I guess, a, for you and your status for Bumble and Badoo. And then b, love to hear your thoughts on some of the lawsuits that we saw last week and how that impacts you?

Tariq Shaukat

executive
#20

Yes. No, I had to check before coming on that there wasn't any blog post or a press release issued by one party or the other in this whole thing. So it does not appear to be since Saturday. So from our standpoint, we remain in full compliance on Bumble. And that means we're updating the Bumble app frequently. So a lot of the products that we talked about require us to be able to update the Bumble app to get them out in the market. So we are in compliance there. On Badoo, we are in I call partial compliance, right, which means that we are slowly rolling it out and making sure the mitigations that we have in place for some of the things we found last year really stick before we keep going on that. And our launch calendar for Badoo intentionally was not heavy at this time of year, right, so that we could manage through that. As it relates to all of the different news, it's honestly a little bit hard to tell exactly what's going on. We have generally -- while we haven't taken anything off the table, we have generally had a partnership-oriented approach to dealing with Google and Apple. These relationships are very complex. They're very challenging, and there's lots and lots of different tentacles to them. And so we have generally found Google to be good partners and Apple to be good partners. And of course, we have our disagreements on different pieces. We're paying a lot of attention. They have the user billing, what do they call? The user choice billing. Pilot, we have expressed very strong interest in being included in that. Still waiting to hear back about whether we will be included in that. But the day it was announced, we told them we would be interested. In participating there, we are very transparent with them about issues like I think I mentioned in the past with Argentina, where they don't support local currencies, and we want to make sure that we are -- we are not disadvantaging our users in Argentina, things like that. So very active dialogue. But honestly, sometimes it's hard to figure out which press releases and blog posts are true or not. So we're focusing on our business and our partnership.

Cory Carpenter

analyst
#21

Last question on it, I promise. I mean do you think the user choice billing pilot is something that Google is seriously looking to expand right now. They have one partner. And then does the fact that Match is not paying app fees on some of their apps right now, has that changed at all kind of your approach? I know you've been a good partner, but does it change your thinking at all?

Tariq Shaukat

executive
#22

So Google have put out public interest forms where you can apply. We've also, through our partnership connections, have expressed interest and they told us that as they expand the program, they are very keen to consider us for it. So that would indicate to me that they are open to expanding. I know it's a pretty complicated set of things that they're trying to do. But we feel like our engineering team has probably some of the most experienced in third-party billing of anyone out there. So if they're going to do it with anybody, we would hope they would do it with us. So more to come, but there's no reason to believe that they are not looking to expand the program, and we think we're in a pretty good place there. The fees piece of it is -- this is what I'm still trying to understand exactly what they're doing with Match, how long does it last that sort of thing. What is most important to us and Google has stressed this time and time again is that there'll be a level playing field like we feel very good that on a level playing field, we can compete and win and provide great service to our users in a way that will help us gain share around the world. We have no doubts inside the company that, that is the case, Google have committed publicly and privately to maintaining a fair and level-playing field. If this changes, the slope of that playing field, we hope that they will level it again and not just put us on the wrong end of that. So we're still -- this was all Friday and Saturday and Sunday. So it's now Monday, and we'll see what Tuesday brings, I guess.

Cory Carpenter

analyst
#23

So let's shift to Bumble App international expansion, one of the bigger focuses, I would say. Could you just give us a quick recap on your footprint outside the U.S. and English-speaking markets today? And what are your biggest markets? And where are you most focused on expansion?

Tariq Shaukat

executive
#24

Sure. We have a number of markets that we've -- I would consider international, meaning non-U.S. that we've been in for a long time. So that would be the U.K. and Australia and New Zealand, Canada. We have since -- for the last 2 years, maybe 18 months, we have been pretty aggressively expanding outside of there and other high ARPU market. So we've talked a lot about Germany and the DACH region, so Germany, Austria, Switzerland, quite a bit. In those regions, we've gone from really nothing to -- as of last quarter, we believe we're the second most downloaded dating app in Germany as an example, and no signs of growth not happening, not continuing to happen in Germany. So we feel like international expansion in Western Europe, which started there is on track. We are now expanding or have been expanding, I should say, that approach so that we are active in France. We're active in the Benelux region, seeing really good growth there. We have plans in the second half of the year to go more actively against the Nordics and against Spain, so both Northern and Southern Europe. So a lot of our focus is on Western Europe. We've had long-standing efforts in India and in Southeast Asia, and both of them keep growing quite rapidly, and we are pretty, again, happy with the progress we're seeing there. Those are obviously lower ARPU markets, but we think there's still important markets from a user and from a global footprint standpoint. And then Latin America, we started with Mexico, seeing tremendous traction in Mexico, Brazil as well as a relatively new add, and we think there's a lot of upside in other parts of Latin America in the second half of the year and going into 2023 as well.

Cory Carpenter

analyst
#25

Zooming on India for a bit. It feels like a market where it looks like you're gaining some recent momentum. What is your presence like in India today? And is there anything you're doing differently in the last few quarters that's driven an uptick in usage?

Tariq Shaukat

executive
#26

India is a market we launched with a lot of publicity back I think it was 2018 or 2019 and then COVID happened. And so we took our foot off the marketing gas for a little while in India. We let the organic activity continue, and we saw good growth throughout the pandemic, but we're now saying now that the market is somewhat more open. We're going to do the city expansion. We historically were very focused on markets like Mumbai. We're now taking in other -- it's hard to call them Tier 2 cities when there's millions and millions of people, right, but other cities that are not Mumbai and Delhi. We are doing a lot of work with influencers on the ground in India. We're doing a lot of above-the-line advertising and really brand messaging in India, and all of it seems to be clicking at the moment. So we're seeing very good growth in India as a result of all of that.

Cory Carpenter

analyst
#27

So shift to Badoo seems some -- been more impacted by Russia, Ukraine, COVID in emerging markets. What's the latest on Badoo? Could you just talk about some of the ways you're working to try to stabilize things there?

Tariq Shaukat

executive
#28

Sure. So for those who don't know, we announced back in March that we are shutting our operations in Russia, which in part had some staff implications for us, but for Badoo, most importantly, from a user standpoint, most importantly was that we shut down new downloads in the app stores in Russia and Belarus. There was a large market for Badoo, so it's obviously had some impact for us. I think it's gone as well as you could expect that to go. And we are now really looking at how do we stabilize and then move back to growth that business. And so the Badoo user is more economically sensitive users, as I mentioned earlier. And as a result, both COVID and some of the macro trends related to the war are impacting that user more than we would like. We are making sure we have a very back-to-basics approach. One of the products that is really caught on through the pandemic as a product in there, we call Talk to Someone, which is an instant connection. It's almost like a chat feature with strangers, right? But with an intent to lead to dating, we're leaning into features like that to ensure that people remain engaged. The conundrum, if you will, with Badoo is that people who are engaged with Badoo are actually at engagement levels that are as high, higher than at any time through the pandemic and in many cases, at prepandemic levels. So what we really have in Badoo is more people standing on the sidelines than we would like because of the economic distress and COVID and things like that. So we're working on bringing more people back into the fold.

Cory Carpenter

analyst
#29

Okay. Got to ask about competition. On the earnings call a few weeks ago, you mentioned Bumble app grew its download share in the U.S., expanding its lead over the #3 dating app in recent months. You did not mention that dating app. I'm going to think it's safe to assume it might be Hinge. So curious what do you think is driving the share gains? And how do you plan to kind of keep that momentum going?

Tariq Shaukat

executive
#30

So I will neither confirm nor deny your Hinge comment. However, the -- our team is very focused on a couple of things. One of them, and it's going to sound very basic, but it's just operating day in and day out. We have a lot of our efforts focused on what is the registration rate, what is day 1 retention, what is week 1 retention, what is -- it's the boring stuff we don't talk about all that much, but our team spends a lot of time really operating the business. And I think that we've really seen substantial and it won't be 15% improvement, right? It's small improvements in lots of parts of the business that lead to ongoing share growth. So that's certainly a key piece of it. We think the reason why smaller apps in this space, these little apps with 10,000 users or whatever have such a hard time because it's such a word-of-mouth product, right? And if you look at Bumble's net brand favorability, how many people just love the Bumble brand. It is higher than any other dating app that we look at. And we think that, that is a reason why if you are in doubt what dating app should you use, you come to Bumble. And then our job is to make it easier and easier for you to sign up, to start using it and to give you fewer reasons to leave for bad reasons, right, meaning we want people to leave the app because they found a relationship but not because you don't like the app. So we're just really focused relentlessly on the execution side.

Cory Carpenter

analyst
#31

Two more questions, and then we're going to do some word association to end it. Fruitz. Your first acquisition, your third dating brand. Could you just talk about the thought behind that acquisition? And I think the question we get a lot is more broadly, how should we think about your desire to add more brands? Does Bumble have 10 brands in 5 years? What is your plan there?

Tariq Shaukat

executive
#32

So we don't have a number of brands that we're solving for, but we also -- we don't want to have as many brands as we can acquire, right? That's not the name of the game. What we want is to find ways to serve users, right, that are additive, not cannibalizing, we think, very, very positive. The thing that really caught our eye about Badoo -- Fruitz, I'm sorry, actually, there's 2 things. One of them was that it's a dating app that is predominantly successful with Gen Z users. And it's very hard to find a dating app right now that is at the scale of Fruitz and Fruitz is not huge, but in France, they're now the #2 most downloaded app in France, and they're doing that with almost exclusively Gen Z users, right? So they're clearly on to something with a demographic that's going to be critically important to the future that is critically important today and then no one else seems to have cracked to the same extent that they have. We've got a good Gen Z user base inside of Bumble, but we still have a ton of kind of older Gen Z and millennial users and Fruitz seems to have figured out something in that Gen Z bucket. So that's really interesting. But the second part is their growth is almost entirely organic, right? And it's very easy to start a dating app where you just buy lots of users and then you hope that it sticks. That wasn't the approach they took. They took an approach of building an app that people were engaged and wanted to talk about that generated the users, and it's generating the growth today. So if you look at their organic versus performance growth and things like that, since Bumble, we haven't seen another app that has that level of organic growth and traction. And that to us is super rare, right? So if you found me another app in some other country that has that mix, we would take a serious look at it. But honestly, there's not that many. There's a lot of places to get to that 10,000 user level, like I said, and then they have to go and spend in performance marketing. That wasn't Fruitz, right? Fruitz to this day continues to grow very, very strongly in France without a big marketing push, right, just because of the organic activity that they have.

Cory Carpenter

analyst
#33

So last 1 on BFF. Whitney teased an announcement to come in 3Q or likely to come in 3Q on the earnings call. What can you tell us about your plans for BFF and just the broader vision for that offering?

Tariq Shaukat

executive
#34

So BFF is our friend finding service inside of Bumble. And the way it works today is it's very much like a dating experience but for friend. So you can basically go on there, say that you're interested in finding friends, and then you'll see a whole bunch of profiles of people who are also interested in finding friends. We have over 1.5 million monthly active users on the service. People who use BFF generally stay on Bumble the app for longer. Their ARPU tends to be higher, like lots of goodness comes into the brand from people who use BFF. So it's an important part of the business today, but we think we're just scratching the surface on what it could be. And the reason for that to put it to say the obvious, I guess, is people don't date for friends typically, right? You don't have this. Oh Cory, you look interesting. Let's have a detailed one-on-one conversation to see will you really be my friend and then let's go and play soccer together like that's not how the world works, right? And yet that's how BFF works today. And so what we are trying to do with the next generation of BFF is focus on the things that matter to people, right? So they're what we call their struggles and joys, right, their joys and struggles. That could be that you're a new parent or a new mom, you want to find another new mom. It could be that you just moved and you want to find new friends in the city that you move to, it could be that you really like hiking, but need somebody to go hiking with. It could span the spectrum. And then let's craft ways instead of this high stakes interaction model that we've got, let's find ways that it becomes lower stakes, right, that you have the ability to meet groups of people so that you can start to get to know people as opposed to this one-on-one interviewing model. So that's as far as I can probably go without my marketing teams killing me because we are -- as we're winning Ts, we're probably going to do a consumer oriented announcement of this in a month or 2. We are actively live with users with this new experience in some cities. What I would say is that the tests so far are going really well, and we have over 75% of people who use it in month 1, who are retaining for month 2, which means it's a really sticky social product, which we're very excited about. We have a good number of people who say that if we end up not rolling this out, that they would feel like something is missing in their lives, not to be too dramatic about it, but they would be sad to see it go. And so that is really interesting to us as well. So more to come. I see we have a minute and 30...

Cory Carpenter

analyst
#35

I want to leave time for the words...

Tariq Shaukat

executive
#36

Yes. I'm trying to just like eat up the clock now, so I don't...

Cory Carpenter

analyst
#37

So the game is I will -- I got 10 words, phrases that I'll mention, and you just say the first thing that comes to your mind ideally.

Tariq Shaukat

executive
#38

I haven't seen these before.

Cory Carpenter

analyst
#39

Ideally one word.

Tariq Shaukat

executive
#40

Ideally one word and Anu, our CFO, here is very nervous about what I'm going to say and psychologically what it means about me.

Cory Carpenter

analyst
#41

Online dating.

Tariq Shaukat

executive
#42

Bumble.

Cory Carpenter

analyst
#43

Match.

Tariq Shaukat

executive
#44

Bubble Gum.

Cory Carpenter

analyst
#45

Bumble app.

Tariq Shaukat

executive
#46

Yellow.

Cory Carpenter

analyst
#47

Compliments.

Tariq Shaukat

executive
#48

Opportunity.

Cory Carpenter

analyst
#49

Google.

Tariq Shaukat

executive
#50

Really? Sorry, Google. Fun.

Cory Carpenter

analyst
#51

Badoo.

Tariq Shaukat

executive
#52

Opportunity, again.

Cory Carpenter

analyst
#53

BFF, got to use a different word than opportunity.

Tariq Shaukat

executive
#54

No, no I'm going to use 3 words, joys and struggles is what we talk about.

Cory Carpenter

analyst
#55

Hinge.

Tariq Shaukat

executive
#56

Bubble Gum.

Cory Carpenter

analyst
#57

Fruitz?

Tariq Shaukat

executive
#58

Watermelon, which is one of the types of fruits that you can choose inside of...

Cory Carpenter

analyst
#59

And last one, Tinder.

Tariq Shaukat

executive
#60

Tinder? The first word that came to mind, but I don't know, I mean legacy.

Cory Carpenter

analyst
#61

All right. Thank you. Appreciate it.

Tariq Shaukat

executive
#62

Thank you.

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