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Bumble (BMBL) stock has plunged by as much as 30% in Wednesday's session after the dating app reported narrowly topping fourth quarter revenue and paying users estimates. Most notably, the "women message first" app missed on revenue and EBITDA guidance for its first quarter 2025.
Julie Hyman and Seana Smith report more on Bumble's decline in paying customers and discontinuing its other acquired dating apps.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Luke Carberry Mogan.
Let's talk about Bumble, that stock getting smoked today after the company announced fourth quarter earnings, issuing a weaker than expected first quarter outlook as well and revealing it lost 57,000 paying customers in the fourth quarter versus the third. The company also announced it would be sunsetting a couple of its apps, fruits with a Z and official, two apps that it had acquired in order to cut costs. And the move coming as Bumble's and others in the dating app industry have been grappling with financial challenges, prompting a reevaluation of their business strategies. As one analyst pointed out, I think the folks at Jeffries, the outlook that the company's just given implies 14 straight quarters of Bumble app revenue growth decelerating. If you look at their overall revenue growth, it's just decelerated quarter after quarter. It's been slowing.
Yeah, exactly. That that line on and that statistic stuck out to me. And then also the folks over at Piper Sandler saying that the turnaround is going to be choppy when you take a look at the fact that there's no clear, I guess, conviction in terms of that direction. You talk about the fact that there's certainly been a lot of management change over, you also have the return of Whitney Wolfe Herd, she's returning as CEO next month, and you talk about the changes that have already taken place. The company obviously has looked to cut costs, they've laid off a number of their workers within the past 12 months as well. So again, when you're talking about the fact that we're seeing this deceleration in growth, obviously, that's never something anyone likes, especially when you take a look at the street, and there's a lack of catalyst, I think, is a clear message that's coming from Wall Street.
You know what I always hope when we talk about this, that people are meeting each other organically in real life again. That's like my happy married lady sun, like sunny view of things.
I know, but it seems like that's happening less and less.
Yeah. Maybe by the time our kids are looking to meet their.