Bumble posted its first sequential decline in user growth since the dating app owner went public in February, as fresh pandemic restrictions crimped demand in some markets, sending its shares down over 9 percent in extended trading.
In the third quarter, total paying users fell 2 percent from the prior quarter to 2.9 million as the global Delta variant surge prompted renewed lockdowns, curtailing consumer spending on dating app subscriptions and in-app purchases.
Bumble's other dating app, Badoo, which is mostly used by the urban middle class segment, also saw user growth affected by the economic pressures brought on by the health crisis in some markets.
"Badoo operates in a large number of markets where the pandemic is still a significant challenge ... with differences in pace of recovery by region," Chief Executive Officer Whitney Herd said in a post-earnings call.
"While many key markets such as Russia and Brazil have shown strong growth in both paying users and user revenue, other markets like France and Italy have lagged."
Bumble's shares have lost about 32 percent since its market debut in February.
Despite the slowdown, Texas-based Bumble raised its full-year revenue forecast and said it remained well-positioned for the upcoming quarter as it continues to expand internationally. Rival Match, however, projected fourth-quarter revenue below estimates as COVID-19 hit the Tinder owner's business in Asia.
Bumble expects current-quarter revenue between $208 million (roughly Rs. 1,549 crore) and $211 million (roughly Rs. 1,571 crore), above analysts' estimates of $206 Million (roughly Rs. 1,534 crore), according to Refinitiv IBES data.
Total revenue was $200.5 million (roughly Rs. 1,493 crore) in the third quarter, compared with estimates of $198.8 million (roughly Rs. 1,480 crore).
© Thomson Reuters 2021