Bumble's App Revamp and Underwhelming Q1 Guidance: Analysts Weigh In

Bumble Inc. (BMBL), the popular dating app known for its unique "women make the first move" feature, has been facing headwinds in recent months. The company's recent earnings report and guidance for the first quarter of 2025 have left analysts with mixed feelings about the stock's prospects. Let's delve into the details and explore the analysts' perspectives on Bumble's app revamp and underwhelming Q1 guidance.

Bumble's Q4 2024 Results and Q1 2025 Guidance

In its fourth quarter of 2024, Bumble reported revenue of $261.6 million, a 4.4% year-over-year decline. However, this figure was slightly above Wall Street's expectations of $260 million. The company also reported a 5.3% increase in total paying users, reaching 4.2 million. Despite these results, Bumble's stock price fell after hours on Tuesday, following the company's guidance for the first quarter of 2025.

Bumble expects first-quarter revenue to be between $242 million and $248 million, which is below analysts' estimates of $256.9 million. The company also anticipates a sequential decline in Bumble app paying users, with an estimated decrease of around 110,000. These underwhelming guidance figures have raised concerns among analysts about Bumble's near-term prospects.

Analysts' Price Target Revisions and Perspectives

Several Wall Street firms have revised their price targets for Bumble following the company's earnings report and guidance. Some analysts have maintained or even increased their targets, indicating a degree of confidence in the company's long-term prospects. For example, Shweta Khajuria of Evercore ISI Group raised her price target from $18.00 to $14.00, a 22.2% increase. However, other analysts have lowered their price targets, reflecting their concerns about Bumble's recent performance and guidance.

Justin Patterson of Keybanc lowered his price target from $11.00 to $8.00, a 27.3% decrease, while Alexandra Steiger of Goldman Sachs reduced her target from $18.00 to $9.00, a 50% decrease. These revisions suggest that analysts are concerned about Bumble's recent performance and guidance.



Bumble's app revamp, announced in February 2025, aims to address the evolving preferences and needs of Gen Z users. The company has introduced several new features and changes, such as allowing women to make the first move in all conversations, refreshing the app's look, and incorporating artificial intelligence to facilitate matches. These changes are expected to have a positive impact on user engagement and retention, as they address the specific needs and preferences of Gen Z users.



Analysts' price target revisions reflect their confidence in Bumble's turnaround strategy and potential catalysts for a stock price rebound. The primary catalysts for a potential rebound in Bumble's stock price could be improved financial performance, successful product innovation, positive earnings guidance, and strategic acquisitions or partnerships. As Bumble continues to execute on its turnaround strategy and deliver on its promises, investors and analysts may regain their confidence in the company's long-term prospects.

In conclusion, Bumble's app revamp and underwhelming Q1 guidance have left analysts with mixed feelings about the stock's prospects. While some analysts remain confident in the company's long-term prospects, others have lowered their price targets, reflecting their concerns about Bumble's recent performance and guidance. As Bumble continues to execute on its turnaround strategy and deliver on its promises, investors and analysts may regain their confidence in the company's long-term prospects.