Bumble sees first drop in user growth since going public due to COVID-19, now has 2.9 million paying users

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Bumble saw its first sequential decline in user growth since the dating app operator went public in February as new pandemic restrictions dampened demand in some markets and its shares fell more than 9 percent in expanded trading.

In the third quarter, the total number of paying users fell 2 percent to 2.9 million, as the global increase in the Delta variant led to renewed bans and reduced consumer spending on dating app subscriptions and in-app purchases.

Bumble’s other dating app, Badoo, which is mostly used by the urban middle class, has also been hurt by economic pressures caused by the health crisis in some markets.

“Badoo operates in a large number of markets where the pandemic is still a significant challenge … with varying rates of recovery from region to region,” said Chief Executive Officer Whitney Herd on a conference call after the win.

“While many key markets like Russia and Brazil have seen strong growth in both paying users and user revenue, other markets like France and Italy have lagged.”

Bumble stock has lost around 32 percent since its stock market debut in February.

Despite the slowdown, Texas-based company Bumble raised its full-year revenue forecast, saying it was well positioned for the coming quarter as it continues to expand internationally. However, Rival Match was expecting fourth quarter revenue to be below estimates as COVID-19 hit the Tinder owner’s business in Asia.

Bumble expects revenues for the current quarter between $ 208 million (approximately $ 1,549) and $ 211 million (approximately $ 1,571), above analyst estimates of $ 206 million (approximately $ 1,534) US dollars) according to data from Refinitiv IBES.

Total sales for the third quarter were $ 200.5 million (approximately Rs.1493 billion) compared to estimates of $ 198.8 million (approximately Rs.1,480 billion).

© Thomson Reuters 2021

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