MW Bumble investors shrug off revamp, shares drop as forecast disappoints

By Bill Peters

Online-dating company says it plans a 'regular cadence of product innovation' this year

Shares of Bumble Inc. slid after hours on Tuesday after the dating app forecast first-quarter sales that missed Wall Street's expectations, as it tries to reinvent itself to help users better connect.

Bumble (BMBL) - which owns Badoo and Geneva along with its namesake app - said it expects first-quarter sales of $242 million to $248 million. Analysts polled by FactSet expected $256.9 million.

Shares were down 13% after hours on Tuesday. Over the past 12 months, the stock has fallen around 40%.

The company has faced greater competition and pressure to appeal more to Gen Z users, who have grown increasingly tired of dating apps they have said offer only fleeting connections and squeeze more dollars from their users.

Over the past year, Bumble has slashed staff and shaken up its executive ranks - including the return of founder Whitney Wolfe Herd as chief executive starting next month. Bumble has also revamped its site in an effort to make dating less "exhausting." Women no longer have to make the first move on the app, and the company has refreshed the look of the app and incorporated artificial intelligence in an effort to facilitate matches.

During the fourth quarter, Bumble's sales fell 4.4% year over year to $261.6 million. However, that was above Wall Street's expectations for $260 million. The company's sales figure included a $2.7 million hit due to foreign currency fluctuations.

In addition, total paying users rose 5.3% to 4.2 million.

"Over the coming year, the company plans to build upon the strong foundation it has established, with a regular cadence of product innovation and by continuing to operate with discipline and rigor," Chief Financial Officer Anu Subramanian said in Bumble's earnings release.

-Bill Peters

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February 18, 2025 17:36 ET (22:36 GMT)

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