Cyprus Mail
BusinessInternationalSocial Media

Bumble forecasts weak fourth-quarter revenue, shares fall

bumble

Bumble (BMBL.O) forecast fourth-quarter revenue below Wall Street estimates on Tuesday in a sign that sticky inflation and growing competition were weighing on user spending on its dating apps, sending shares down more than 6 per cent in extended trading.

The lackluster forecast comes a day after Bumble said its founder Whitney Wolfe Herd would step down as CEO, the second major executive departure at the company, and will be succeeded by Slack Chief Executive Lidiane Jones.

Bumble faces competition from rival Match Group (MTCH.O), that has rolled out several new features, including weekly subscription plans and new engagement and privacy features across Tinder and Hinge.

Bumble’s shares have lost around a third of their value so far this year over concerns of slowing growth.

Match last month, however, forecast fourth-quarter revenue below market estimates, reflecting the impact of a strong dollar and risk to revenue from Israel against the backdrop of the Middle East conflict.

Bumble on Tuesday estimated a $1 million hit in the fourth quarter from the crisis in Middle East.

Both Bumble and Match are also exploring using artificial intelligence to craft features that could drive user engagement on their apps.

Total paying users across Bumble’s apps including Badoo and Fruitz increased to 3.8 million in the third quarter, compared with 3.3 million a year earlier.

Austin, Texas-based Bumble expects revenue for the quarter ending Dec. 31 to be between $272 million and $278 million, compared with analysts’ estimates of $285.9 million, according to LSEG data.

Total average revenue per paying user increased to $23.42 in the third quarter, compared with $22.96 a year earlier.

The company posted revenue of $275.5 million, compared with estimates of $277 million.

Bumble reported a profit of 12 cents per share, beating estimates of 7 cents.

Follow the Cyprus Mail on Google News

Related Posts

Government employment increases by 5.2 per cent in January

Souzana Psara

Alpha Bank pledges commitment to Cyprus economy in meeting with president

Souzana Psara

Investment funds fueling sustainable growth in Cyprus, association says

Kyriacos Nicolaou

Google enables OS upgrades for older PCs post-Windows 10 support cutoff

Reuters News Service

Freedom Holding Corp. doubles quarterly earnings to $418.6 million

Kyriacos Nicolaou

Biden’s drive for EVs collides with Detroit’s profit machines

Reuters News Service