Bumble CEO Whitney Wolfe Herd Developing AI-Powered Matchmaking App
ByAinvest
Friday, Aug 29, 2025 12:22 pm ET1min read
BMBL--
Despite the promising new venture, Bumble's stock has faced significant challenges. In after-hours trading following the second-quarter 2025 earnings report, Bumble's shares tumbled 8% as the company revealed deepening customer retention issues. Paying users declined by 8.7% to 3.8 million, and total users dropped from approximately 58 million in 2023 to 50 million by mid-2025 [2].
Bumble's financial resilience is evident through a 26% surge in adjusted EBITDA to $94.6 million, achieving a 38.1% margin. However, operational headwinds persist, with the company projecting further revenue deterioration for the third quarter. Management acknowledged that rebuilding momentum requires several quarters, declining to provide full-year 2025 guidance [2].
Rivals such as Match Group (MTCH) and Grindr (GRND) also face user retention pressures but have shown varying degrees of success. Match Group maintains market dominance with more than 16 million paying users across its portfolio, while Grindr's niche positioning potentially insulates it from broader market trends [2].
From a valuation standpoint, Bumble trades at a significant discount with a forward P/E of approximately 18.8x, notably below the Zacks Internet - Software industry average of 38.87x. The Zacks Consensus Estimate for third-quarter revenues is pegged at $244.56 million, indicating a 10.62% year-over-year decline, with earnings expected to increase 11.43% to 39 cents per share [2].
References:
[1] https://stocktwits.com/news-articles/markets/equity/bumble-developing-ai-powered-matchmaking-app-report/chtTlsuRdNm
[2] https://www.nasdaq.com/articles/bumbles-customer-retention-rate-slips-growth-getting-harder
Bumble CEO Whitney Wolfe Herd is developing a new AI-powered matchmaking app. The app aims to enhance the dating experience by using artificial intelligence to improve matching and communication between users. The app's development is part of Wolfe Herd's efforts to expand Bumble's offerings beyond its core dating platform.
Bumble Inc. (BMBL) CEO Whitney Wolfe Herd has announced the development of a new AI-powered matchmaking app, aiming to enhance the dating experience through advanced artificial intelligence. The app, set to launch in beta this fall, will be separate from the existing Bumble platform and is expected to improve matching and communication between users [1].Despite the promising new venture, Bumble's stock has faced significant challenges. In after-hours trading following the second-quarter 2025 earnings report, Bumble's shares tumbled 8% as the company revealed deepening customer retention issues. Paying users declined by 8.7% to 3.8 million, and total users dropped from approximately 58 million in 2023 to 50 million by mid-2025 [2].
Bumble's financial resilience is evident through a 26% surge in adjusted EBITDA to $94.6 million, achieving a 38.1% margin. However, operational headwinds persist, with the company projecting further revenue deterioration for the third quarter. Management acknowledged that rebuilding momentum requires several quarters, declining to provide full-year 2025 guidance [2].
Rivals such as Match Group (MTCH) and Grindr (GRND) also face user retention pressures but have shown varying degrees of success. Match Group maintains market dominance with more than 16 million paying users across its portfolio, while Grindr's niche positioning potentially insulates it from broader market trends [2].
From a valuation standpoint, Bumble trades at a significant discount with a forward P/E of approximately 18.8x, notably below the Zacks Internet - Software industry average of 38.87x. The Zacks Consensus Estimate for third-quarter revenues is pegged at $244.56 million, indicating a 10.62% year-over-year decline, with earnings expected to increase 11.43% to 39 cents per share [2].
References:
[1] https://stocktwits.com/news-articles/markets/equity/bumble-developing-ai-powered-matchmaking-app-report/chtTlsuRdNm
[2] https://www.nasdaq.com/articles/bumbles-customer-retention-rate-slips-growth-getting-harder
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