Bumble Shares Slide: Weak Forecast Signals Slow Dating App Turnaround

Bumble Inc. (BMBL) shares took a tumble after the company reported fourth-quarter results and a weak revenue forecast, signaling a slow turnaround for the dating app giant. The stock fell 14.2% in after-hours trading on Tuesday, following a 4.26% decline during regular trading hours.

The dating app company reported quarterly revenue of $261.6 million, which beat analyst estimates of $260.47 million but was a decrease from revenue of $273.64 million in the same period last year. Total paying users increased by 5.3% to 4.2 million, but the average revenue per paying user (ARPPU) decreased to $20.58 from $22.64.

Bumble's outlook for the first quarter of 2025 was also disappointing, with the company expecting revenue between $242 million and $248 million, compared to the $256.86 million estimate. The company attributed the weak forecast to ongoing ecosystem health initiatives, investments in product and technology, and a sequential decline in paying users.

The dating app market has become increasingly competitive, with younger users growing tired of traditional dating apps and seeking more meaningful connections. Bumble has faced pressure to appeal to Gen Z users and has made efforts to revamp its app and incorporate artificial intelligence to facilitate matches. However, the company has struggled to maintain revenue growth and has seen a decline in ARPPU.



In an effort to refocus resources and improve growth, Bumble has decided to sunset its Fruitz and Official apps. The company has also announced a regular cadence of product innovation and plans to operate with discipline and rigor to strengthen business performance and create lasting value for shareholders.

As Bumble continues to navigate the competitive dating app landscape, investors will be watching closely to see if the company can successfully execute its turnaround strategy. The weak revenue forecast and decline in ARPPU raise concerns about the company's ability to maintain profitability and attract younger users. However, with a strong foundation and a visionary founder returning to the helm, Bumble remains well-positioned to reimagine the future of online dating and create meaningful connections for its users.