Bumble trims annual revenue forecast amid competition
2022.08.10 23:45
FILE PHOTO: The Bumble Inc. (BMBL) app is shown on an Apple iPhone in this photo illustration as the dating app operator made its debut IPO on the Nasdaq stock exchange February 11, 2021. REUTERS/Mike Blake/Illustration
(Reuters) -Bumble Inc cut its full-year revenue forecast on Wednesday, signaling a hit from stiff competition from rivals such as Match Group Inc (NASDAQ:MTCH) in the online dating market.
Shares of Austin, Texas-based Bumble fell 7% in trading after the bell.
While Bumble has experienced a surge in popularity – with paying users growing 31% to 1.9 million in the quarter – its other dating app, Badoo, which is mostly used in Western Europe by the urban middle class segment, remains under pressure from ongoing economic uncertainties.
Bumble reported revenue of $50.8 million from Badoo and other apps in the quarter ended June 30, a 13.7% decline from a year earlier. In contrast, Bumble app revenue jumped 33.2% to $169.6 million in the same period.
The company now expects revenue between $920 million and $930 million for 2022, including a $20 million impact from the conflict in Ukraine, lower than its prior estimate of $934 million to $944 million. Analysts on average are expecting $934.1 million, according to Refinitiv data.
Earlier this month, Tinder-parent Match also posted a disappointing forecast and said it faced a number of challenges in the second quarter, including a hit from a stronger dollar, a drop in paying subscribers for some apps and a slow recovery in certain markets.
For the quarter ended June 30, Bumble’s revenue rose 18.4% to $220.5 million, edging past analysts’ average estimate of $219.4 million.
