Latest news with #Fruitz
Yahoo
20-02-2025
- Business
- Yahoo
Bumble forecasts first-quarter revenue below estimates on sluggish user growth
(This Feb. 18 story has been corrected to fix the spelling of 'transpire,' in paragraph 8, and 'picker,' in paragraph 4) By Kritika Lamba (Reuters) - Bumble forecast its first-quarter revenue below analysts' estimate on Tuesday, signaling that the dating app operator's efforts to boost growth are taking longer than expected, sending its shares down 16% in extended trading. Online dating apps have been grappling with declining user engagement and customer spending on their platforms amid a lack of new features and pressures from still-high inflation. Bumble, however, is increasingly investing in marketing initiatives and generative AI-driven features to attract more young users. The company will include features such as ID-verification and AI-photo picker in its upcoming winter release, as it aims to increase safety for its users, CEO Lidiane Jones said on the post-earnings call. Bumble said it expects to see a temporary decline in paying users by 100,000 to 120,000 in the near term, as it is in the early stages of this process. As part of its monetization strategy, the company also said it would discontinue its smaller dating platforms, Fruitz and Official. Bumble is finding it difficult to maintain the multi-app strategy — unlike Match, which is benefiting from its portfolio — and is further struggling to manage in a matured dating market, said Jamie Lumley, fundamental analyst at Carbon Arc. "One area Bumble has talked about that is yet to transpire as a revenue opportunity is (the) friends and community feature, but that is yet to materialize," he added. "But could potentially change the game for Bumble." Bumble's total average revenue per paying user decreased to $20.58, compared with $22.64 a year ago. Total paying users for the Bumble app were at 2.8 million, down by 57,000 from the third quarter. Earlier this month, the company's bigger rival Match Group, which offers dating app services such as Tinder, Hinge and OkCupid, also forecast its first-quarter revenue below estimates. Bumble expects its first-quarter revenue to be between $242 million and $248 million, below analysts' average estimate of $256.9 million, according to data compiled by LSEG. The Austin, Texas-based company's fourth-quarter revenue fell 4.4% to $261.6 million. Sign in to access your portfolio
Reuters
19-02-2025
- Business
- Reuters
Bumble shares slide after weak forecast signals slow dating app turnaround
Feb 19 (Reuters) - Bumble's (BMBL.O), opens new tab shares fell 16% on Wednesday after the dating app operator forecast first-quarter revenue below market estimates, as it continues to grapple with a slowdown in the growth of paying users. Shares of the Austin, Texas-based company have slumped about 40% over the past 12 months. Bumble recently announced executive changes including the return of its founder Whitney Wolfe Herd as its chief executive in March. Over the past year, the company has cut jobs, refreshed its Bumble app and expanded its signature "make the first move" feature to include " opening moves" that allow women to set a question that their potential matches can respond to for better conversations. "There's clearly more work to be done on the turnaround and we see visibility limited as management did not provide full-year guidance for the first time," Citi analyst Ygal Arounian said. The company is set to lose more than $142 million in market value, if premarket losses hold. As of last close, Bumble's valuation stood at $876.3 million compared with Tinder-parent Match Group's $8.85 billion. Bumble said it would discontinue its Fruitz and Official dating apps by the first half of this year. "As we prioritize the execution of the important work we're undertaking to reposition Bumble App, we have taken a hard look at how we're allocating our resources across our portfolio," said departing CEO Lidiane Jones. At least six brokerages cut their price target on Bumble after its latest earnings report. Bumble currently trades at 9.98 times the estimates of its earnings for the next 12 months, compared with 16.51 times for bigger rival Match Group (MTCH.O), opens new tab.
Yahoo
19-02-2025
- Business
- Yahoo
Bumble shares slide after weak forecast signals slow dating app turnaround
(Reuters) - Bumble's shares fell 16% on Wednesday after the dating app operator forecast first-quarter revenue below market estimates, as it continues to grapple with a slowdown in the growth of paying users. Shares of the Austin, Texas-based company have slumped about 40% over the past 12 months. Bumble recently announced executive changes including the return of its founder Whitney Wolfe Herd as its chief executive in March. Over the past year, the company has cut jobs, refreshed its Bumble app and expanded its signature "make the first move" feature to include "opening moves" that allow women to set a question that their potential matches can respond to for better conversations. "There's clearly more work to be done on the turnaround and we see visibility limited as management did not provide full-year guidance for the first time," Citi analyst Ygal Arounian said. The company is set to lose more than $142 million in market value, if premarket losses hold. As of last close, Bumble's valuation stood at $876.3 million compared with Tinder-parent Match Group's $8.85 billion. Bumble said it would discontinue its Fruitz and Official dating apps by the first half of this year. "As we prioritize the execution of the important work we're undertaking to reposition Bumble App, we have taken a hard look at how we're allocating our resources across our portfolio," said departing CEO Lidiane Jones. At least six brokerages cut their price target on Bumble after its latest earnings report. Bumble currently trades at 9.98 times the estimates of its earnings for the next 12 months, compared with 16.51 times for bigger rival Match Group.
