Why did BMBL's Q2 earnings miss expectations?

Bumble's Q2 earnings missed expectations due to a combination of factors: 1. **Revenue Decline**: The Bumble app, which is Bumble's core business, experienced a 3.8% decline in quarterly revenue. Additionally, the Badoo app and other revenue fell by 6.8%. This decline was partly due to foreign currency headwinds and lower average revenue per paying user. 2. **User Growth Challenges**: Bumble faced challenges in growing its user base. The company's average revenue per buyer (ARPB) fell over the last two years, with an average annual decline of 3.9%. This decline in ARPB indicates challenges in maintaining revenue from existing users. Furthermore, Bumble's efforts to boost ARPB through increased monetization are uncertain to succeed in maintaining the current pace of user growth. 3. **Geopolitical Anxiety and Market Volatility**: Shares of Bumble have been volatile, with a 6.9% drop in a morning session amid "tariff/trade war fever" and broader geopolitical anxiety. Such market volatility can impact investor confidence and stock prices, even if the underlying business fundamentals are strong. 4. **Interest Rate Concerns**: The anticipation of the Fed's rate decision, which could have been a bit of a letdown for the dovish camp expecting some policy relief to help offset the growing market weakness amid the ongoing trade war, contributed to the volatility in Bumble's stock price. In summary, Bumble's Q2 earnings miss was due to a combination of revenue decline, user growth challenges, geopolitical anxiety, and interest rate concerns. These factors collectively contributed to a disappointing quarter for Bumble.