Latest news with #WolfeHerd
Yahoo
2 days ago
- Business
- Yahoo
BMBL Q1 Earnings Call: Focus Shifts to Member Quality and Profitability Amid Revenue Decline
Online dating app Bumble (NASDAQ:BMBL) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 7.7% year on year to $247.1 million. On the other hand, next quarter's revenue guidance of $239 million was less impressive, coming in 1.8% below analysts' estimates. Its non-GAAP profit of $0.22 per share was 40% below analysts' consensus estimates. Is now the time to buy BMBL? Find out in our full research report (it's free). Revenue: $247.1 million vs analyst estimates of $246.4 million (7.7% year-on-year decline, in line) Adjusted EBITDA: $64.4 million vs analyst estimates of $61.74 million (26.1% margin, 4.3% beat) Revenue Guidance for Q2 CY2025 is $239 million at the midpoint, below analyst estimates of $243.4 million EBITDA guidance for Q2 CY2025 is $81.5 million at the midpoint, above analyst estimates of $58.94 million Operating Margin: 18.1%, in line with the same quarter last year Paying Users: 4.01 million, in line with the same quarter last year Market Capitalization: $541.2 million Bumble's first quarter results reflected a deliberate pivot towards enhancing member quality and refocusing the business on sustainable, long-term growth. Founder and CEO Whitney Wolfe Herd emphasized the company's renewed commitment to high-quality user experiences, noting that the pandemic-era strategy of prioritizing rapid user growth through performance marketing led to a decline in match quality and overall member satisfaction. Wolfe Herd stated, 'When you scale for scale's sake, the quality experience of finding matches can start to degrade.' Management attributed the current trends to intensified efforts to remove bots and low-quality profiles, as well as investments in trust and safety features, all of which are intended to rebuild the brand's reputation for authentic connections. Looking ahead, Bumble's forward guidance is shaped by a restructuring of its user acquisition strategy and ongoing cost control initiatives. Management expects short-term headwinds—including a reduction in paying users—as they accelerate efforts to improve the member base's quality and shift away from performance marketing. Wolfe Herd outlined that, 'We have to shrink a little bit before we grow,' signaling a willingness to accept near-term declines to reset the platform for future growth. The company also plans to leverage AI-driven personalization, roll out new product updates, and focus on member engagement metrics rather than headline payer numbers. CFO Ron Fior added that ongoing cost savings and a return to organic marketing initiatives are expected to bolster profitability over the coming quarters. Management cited the need to rebuild member trust and product relevance after years of prioritizing volume over user quality. The shift has led to a strategic overhaul of both operations and technology. Member base overhaul: Bumble intensified efforts to remove bots, scammers, and low-quality profiles, aiming to foster a more trusted and relevant community. Wolfe Herd explained that user experience and word-of-mouth growth suffered when the platform prioritized rapid scaling over genuine connections, so the focus has returned to cultivating high-quality interactions. Algorithm modernization: The company is accelerating updates to its personalized matching algorithm by integrating advanced AI and machine learning. Early testing has shown improved relevancy and match rates, which management believes will become a key differentiator as these updates are rolled out. Reduced marketing spend: Bumble has significantly cut performance marketing and non-organic user acquisition spend, reallocating resources towards organic and brand marketing. Interim CFO Ron Fior noted a $20 million reduction in marketing budget for next quarter, with further cuts anticipated as the company seeks to attract more engaged users. Leadership and organizational changes: Since Wolfe Herd's return as CEO, new senior leaders in product, technology, communications, and legal have joined the company, including a new CTO. The search for a permanent CFO continues, with the interim CFO remaining in place until then. Cost optimization: The company identified $15 million in near-term operating cost savings, primarily through restructuring and efficiency measures. These savings are expected to be realized largely in the second half of the year, supporting Bumble's plan to maintain profitability despite anticipated top-line pressure. Bumble's outlook is shaped by efforts to improve member quality, leverage AI in matching, and maintain cost discipline while facing near-term user and revenue headwinds. Transition to quality over quantity: Management expects a near-term reduction in paying users as the company eliminates low-quality and unverified accounts, but anticipates this will lead to higher engagement and increased monetization potential over time as user trust improves. AI-powered product enhancements: The company is investing in AI-driven features to boost match relevance, user profile quality, and in-app safety. Wolfe Herd detailed plans to launch a new 'Discover' tab and member coaching hub, both intended to strengthen user engagement and lay the groundwork for future product monetization. Continued cost control: With a focus on operational efficiency, Bumble will maintain reduced marketing and operating costs in the near term. While some of these savings will be redirected to organic brand marketing later in the year, management believes ongoing discipline will help protect margins during the transition period. In the coming quarters, the StockStory team will monitor (1) the impact of quality-focused user curation on engagement and retention, (2) the effectiveness of AI-driven features in improving match outcomes and user satisfaction, and (3) progress on cost savings and organizational changes. The success of upcoming product launches, including enhancements to Bumble BFF and the coaching hub, will also serve as important indicators of execution. Bumble currently trades at a forward EV/EBITDA ratio of 2.3×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Business Insider
08-05-2025
- Business
- Business Insider
How dating app Bumble got off track, according to its CEO Whitney Wolfe Herd
Bumble's CEO knows you're not happy with dating apps. The dating app company reported its first-quarter earnings on Wednesday, and Bumble's founder, Whitney Wolfe Herd, was blunt about how the company's focus on growth "came with a hidden cost." "What we learned is that just adding more profiles does not guarantee better matches," Wolfe Herd added. "In fact, it can lead to the opposite — more mismatches, more fake or low-quality profiles, and a frustrating experience. As mass quality dropped, some members got discouraged, found fewer successful matches and dates, and fewer people recommended the app to others." Wolfe Herd also said Bumble's pivot from word-of-mouth marketing to performance channels hurt the app's user experience. Bumble — and many other dating apps — saw rapid growth during the pandemic. Riding the wave, Bumble had its IPO in 2021. Since hitting its all-time high in February 2021, however, the company's stock price has dropped by more than 90%. In January 2024, Wolfe Herd stepped down as CEO, and that February, the company laid off hundreds of staffers (about 30% of the company) ahead of a relaunch of the app. Wolfe Herd returned to Bumble as CEO this March. The company reported a 7.7% decline in total revenue for the first quarter, decreasing from $267 million in the first quarter of 2024 to $247 million in the same period in 2025. Bumble app revenue also dropped 6.5%. But Wolfe Herd said she has a plan to get Bumble back on track. In addition to pulling back performance marketing spend, she said the company would double down on removing "bad intention members that have degraded match quality and member trust," while also building out more technology like a "personalized matching algorithm" using AI. Bumble's not the only dating app company looking for new lanes. As dating app giants face headwinds, a slew of new startups have emerged. Some have attracted the attention of both users and investors, particularly with new AI-powered features like matchmaking. Meanwhile, Bumble's primary competition, Match Group — which owns Tinder and Hinge — announced Thursday that it's planning to lay off 13% of its staff, and also reported a 3% year-over-year revenue decline in the first quarter. The company said this was driven by a 5% decline in paying users. Match's new CEO, Spencer Rascoff, also discussed the challenges dating apps are facing. "The category challenges have been due primarily to a lack of innovation and our failure to recognize and respond to changes in the younger demographic, especially Gen Z and what they want," he said.
Buzz Feed
08-04-2025
- Entertainment
- Buzz Feed
Meghan Markle Opened Up About The "Scary" And "Rare" Postpartum Complication She Experienced For The First Time
Meghan Markle is opening up for the first time about facing a life-threatening postpartum condition after the birth of one of her children. The Duchess of Sussex, who shares two children with Prince Harry, spoke about having postpartum preeclampsia during the first episode of her new podcast, Confessions of a Female Founder With Meghan. Meghan sat down with Bumble CEO Whitney Wolfe Herd, who she says also had the postpartum condition. 'We both had very similar experiences, though we didn't know each other at the time,' the duchess said in the episode, released Tuesday. 'We both had preeclampsia ― postpartum preeclampsia.' Postpartum preeclampsia is a rare but serious condition that occurs after childbirth, typically within 48 hours to six weeks, according to the Mayo Clinic. 'It's so rare,' Meghan said. 'And so scary! And you're still trying to juggle all of these things, and the world doesn't know what's happening quietly. And in the quiet, you're still trying to show up for people.' While Meghan added that you're trying to show up 'mostly for your children,' it's tough as conditions like this are 'huge medical scares.' Wolfe Herd added that the condition is 'life or death, truly.' The Bumble CEO then opened up about another incredible hurdle the royal experienced after the birth of her first child, Prince Archie. Wolfe Herd recalled seeing the Duchess of Sussex standing in front of the world with her newborn, just two days after his birth. 'I mean, I'll never forget the image of you after you delivered Archie and the whole world was, like, waiting for his debut,' Wolfe Herd said. 'I was either just becoming or about to become a new mom, and I was like, 'Oh my God, how is this woman doing this? Like, how is this woman putting on heels and going and debuting a child in this, you know, beautiful outfit in front of the entire world?'' 'I could barely face a doorbell delivery for takeout food, you know, in a robe,' the CEO joked. 'Like, please don't look at me! Leave it down the street!' 'Postpartum is wild,' Wolfe Herd said. 'It's almost like one foot in one world, and one foot in another world. It's a very confusing place to live in.'
The Guardian
08-04-2025
- Entertainment
- The Guardian
Confessions of a Female Founder review – Meghan's sycophantic interview podcast is stomach-turning
Remember the girl boss? She burst in to the zeitgeist in the 2010s, riding the era's nebulous wave of female empowerment and proving that women could become incredibly rich by helming capitalist empires – just like men. Branding-wise, she had some issues: beginning with that infantile moniker and peaking with a series of toxic workplace scandals. This – combined with the fact that celebrating corporate greed took on an even more nauseating hue post-pandemic – means we haven't heard from her for quite a while. Yet this new podcast from Meghan, Duchess of Sussex, is alive with the spirit of the girl boss. Confessions of a Female Founder with Meghan sees the royal quiz ladies on how they made their fortunes: starting with Whitney Wolfe Herd, the founder and CEO of the dating app Bumble, who was once the world's youngest self-made female billionaire. Meghan has a vested interest in such success stories – hot on the heels of her Netflix series, With Love, Meghan, the self-styled lifestyle guru is launching a business of her own. As ever sells preserves, teas and those dried flowers she sprinkled on a vegetable frittata in the TV show, much to her guest Mindy Kaling's amusement. But As ever is more than a money-making scheme: it is, as our host puts it on this podcast, 'an extension of my essence'. Of course, one cannot extend one's essence alone: Meghan – who, after that eye-watering 'you know I'm Sussex now' retort to Kaling in her TV series, seems to be going fully mononymous – needs advice. She gets it from Wolfe Herd – one of her 'closest friends' – who tells her not to sweat the small stuff (Meghan is very concerned about the packaging of her products) and that enormous amounts of money don't make you happy. More important than advice, however, is flattery – and Confessions of a Female Founder is jam-packed with compliments. As per Wolfe Herd, Meghan's observations are 'beautiful' and she's 'an amazing hostess' whose home is filled with 'love and cosiness and yumminess'. Meghan is equally well versed in the art of sycophancy. The day Bumble's stock hit an all-time low, Wolfe Herd wrote a letter to herself about all the things she was grateful for. 'I think it's a really good reminder to people that you have to take stock of how you measure your happiness,' she concludes. 'It's amazing how evolved you are,' replies Meghan. If the love-in doesn't turn your stomach, one of the richest women in the world telling us there's more to life than our net worth may well do. The vibe is predictably fawning but, on a technical level, Meghan is a decent interviewer, especially compared with some celebrity podcasters: she keeps the conversation on track and is conscientious with her follow-up questions. Yet even when her guests do open up – here Wolfe Herd discusses the terrifying press attention that accompanied her decision to file a lawsuit against her former employer Tinder for sexual harassment – Meghan very rarely reciprocates. You can understand why she's guarded – but the problem is that personal disclosure fuels parasocial relationships, which are podcasting's primary draw. While Meghan's previous podcast, 2022's Archetypes, was part-interview, part-explanatory lecture, there is far less narration here. This is a good thing, because it's when Meghan starts addressing the listener directly that things get off-puttingly overwrought. Sentences tend to be laden with maximum emphasis. 'Launching a business, it can be … so overwhelming. Even with the best of teams – hoo!' she loudly exhales in mock anxiety. 'It will keep you up at night!' Maybe this really is Meghan's natural speaking style, but it's one that to British ears sounds just a tad disingenuous. Sitting in a podcast studio talking to wealthy women who worship her is clearly far more Meghan's scene than enduring the remorselessly vicious press and strange, alienating traditions of these shores. And who can blame her? Confessions of a Female Founder is far from a gladiatorial grilling and it's hardly a manual of specific, constructive business advice; it's simply an effusive chinwag between two like-minded pals that may as well have taken place behind a deluxe set of closed doors.
Telegraph
08-04-2025
- Entertainment
- Telegraph
Confessions of a Female Founder, review: Meghan's podcast is an inane stream of mindless aphorisms
'I wanted it to be an environment of thanks and gratitude – compliments only.' While that is not Meghan, Duchess of Sussex describing her new podcast Confessions of a Female Founder it's a quote that certainly fits the bill, as the mother to the sixth in line to the British throne interviews female entrepreneurs to get the secrets of their success. However, there are no confessions or secrets – at one mystifying point Meghan says to her guest, 'You don't have to reveal all the secrets' – but there are plenty of self-care aphorisms, journeys of self-love and validation, discussions of bottling your essence, and great handfuls of mutual adoration. The quote belongs to Meghan's first guest – the genuinely interesting Whitney Wolfe Herd, co-founder of dating app Bumble, the first self-made female billionaire (according to Forbes) and, most importantly for the purposes of this podcast, Meghan's pal. The gushing begins almost instantly, as Wolfe Herd describes Meghan and Harry as an 'elegant, iconic, classy couple' and Meghan calling Wolfe Herd 'the kind of friend who always seems to know exactly what to say' (which is presumably why she was invited on the podcast in the first place). The frustrating thing is that Wolfe Herd, who is just 35, presumably does have wisdom to impart, having been part of the team that created Tinder before she created Bumble. Imagine the drive, the talent, the decisions and sheer bloody ruthlessness it must take to achieve what she has. We get none of it. In this perfumed echo chamber, the best we get is a sense that Wolfe Herd didn't love school and that she wishes she hadn't worked so hard. 'The view isn't worth it,' says the woman who married an oil heir and is worth an estimated $400 million. The pair speak a great amount of deliberately calculated nonsense. In a grim irony, Bumble was originally intended to be a female-only social media app to encourage kindness among girls. It became a dating app. Having recently returned as CEO, Wolfe Herd is given space to plug the product, telling Meghan that she is going to 're-architect the way people love'. There is no way, says the dating app billionaire, to feel better about yourself by relying on the validation of others. We get some fleeting glimpses into Meghan's life, including a brief mention of the postpartum preeclampsia that both women suffered from, but other than that there is little sense that Meghan lives in the real world. When she discusses the benefits of prioritising her children over work, or how she never wants to miss drop-off or pick-up, it's as if she believes the rest of us are making the wrong choices. Wolfe Herd agrees: 'At my on-paper richest, I was my inward poorest.' Now her 'buckets' are better balanced. She is still worth $400 million. View this post on Instagram A post shared by Meghan, Duchess of Sussex (@meghan) Apart from the surface-level waffle, the thing that will strike you is Meghan's. Distractingly odd. Staccato. Delivery. With a very UNusual, EMPHasis on. Various words. 'Inthatmoment,' she says on fretting about packaging for her products. 'It feels. Monumental. For example, a month ago I was. Ab. Solutely. ConSUMED. With packaging. Boxes. It'sallIcouldthinkabout.' In the actual conversation with Wolfe Herd, she is more relaxed and natural, but never adds much more than fulsome agreement and gentle tap-ins for her guest. 'Imagine if they'd given us a bottle of rose for this conversation,' says Wolfe Herd at the end, stumbling on a far better podcast premise than this superficial filler. It ends as it begins, in a flurry of love, self-love and affirmation. 'Oh my gosh, you're the best.' 'I'm proud of you.' 'Thank you.'
