Bumble Marks First User Growth Decline Since IPO on COVID-19 Hit, Has 2.9 Million Paid Users Now

Bumble's shares have lost about 32 percent since its market debut in February.

By Reuters | Updated: 11 November 2021 11:51 IST

Bumble Marks First User Growth Decline Since IPO on COVID-19 Hit, Has 2.9 Million Paid Users Now

Bumble’s total revenue was $200.5 million (roughly Rs. 1,493 crore) in the third quarter

Highlights

Badoo also saw user growth affected by the economic pressures
Despite slowdown, Bumble raised its full-year revenue forecast
Bumble expects current-quarter revenue between $208 - $211 million

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.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

"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.

Bumble Going Strong as Pandemic Love Endures Delta Concerns

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

Is JioPhone Next the 4G phone for everyone that Reliance promises? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.