Bumble forecasts downbeat quarterly revenue as paying users drop
Bumble forecasts downbeat quarterly revenue as paying users drop Aug 5 (Reuters) - Bumble BMBL.O on Wednesday forecast third-quarter revenue below Wall Street estimates, as paying users declined during an ongoing platform overhaul to win back swipe-weary Gen Z users.
The company is reviving its service with a rebuilt, AI-enabled "Bumble 2.0" platform, designed to feel less transactional and more curated than traditional swipe-based apps.
Here are some details:
Bumble shares fell 5% in extended trading following the results.
It forecast third-quarter revenue of $205 million to $213 million, below analysts' average estimate of $215.1 million, according to data compiled by LSEG.
Bumble, which operates the women-first Bumble app along with Bumble For Friends and Bumble Bizz, forecast third-quarter adjusted EBITDA of $56 million to $60 million.
The company's second-quarter revenue fell 15.2% to $210.5 million from a year ago, in line with analysts' estimate of $210.4 million.
Total paying users decreased 16.4% to 3.2 million, while average revenue per paying user rose 1.2% to $21.96.
Peer Match Group MTCH.O also forecast third-quarter revenue below Wall Street estimates on Tuesday.
(Reporting by Nithyashree R B in Bengaluru; Editing by Shreya Biswas)
((NithyashreeRB@thomsonreuters.com))