Bumble tumbles as it misses Wall Street estimates
Shares in the Bumble tumbled last night after the dating app’s third quarter results fell below Wall Street expectations.
Although total revenue increased 16.8 per cent to $232.6m, compared to $199.1m, the dating group failed to rally momentum behind its other apps, including Badoo and Fruitz.
The Badoo app and other revenue dropped 10.2 per cent to $52m, with users seeming to turn away.
However, Bumble app revenue grew 27.9 per cent to $180.6m, despite the unfavourable impact of $7m from foreign currency movements year over year.
“Our business continued to perform well, even as the macro environment became more challenging,” said chief financial officer Anu Subramanian.
Bumble said fourth-quarter revenue and adjusted earnings before interest, taxes, depreciation, and amortization would likely come in under expectations due to headwinds from foreign currency and the war between Russia and Ukraine.
Match Group, which owns brands like Tinder and Hinge, also dropped one per cent.
Unlike Bumble, Match said last week that the number of paid subscriptions to the dating app rose seven per cent globally in July-September.
The group defied analyst estimates, with revenue at $810m for the three months ended September.