Bumble slashes annual revenue forecast as Ukraine war and competition bite
(Reuters) – Bumble Inc slashed its full-year revenue forecast on Wednesday, due to the war in Ukraine while facing stiff competition from rivals such as Match Group Inc in the online dating market.
Shares of Austin, Texas-based Bumble fell nearly 13% in after-hours trading as its current-quarter forecast also fell below Wall Street estimates.
While Bumble has seen a resurgence in popularity, its other dating app, Badoo, which is primarily used in Western Europe by the urban middle class segment, remains under pressure.
Bumble left Russia and Belarus earlier this year after Moscow invaded Ukraine, removing all of its apps from the Apple App Store and Google Play Store in those countries.
The impact of the war is expected to reduce full-year revenue by $20 million, mostly in Badoo and other apps, at a time when Bumble is already catching up with Match, the owner of Tinder, in the European market.
“It’s been a tough first half for Badoo…As Badoo serves a more economically sensitive user base, it’s also felt the effects of COVID and now the macro environment, much more so than the Bumble app. “, said Whitney Wolfe Herd, CEO. said in an earnings call.
Bumble now expects annual revenue of between $920 million and $930 million for 2022, lower than its previous estimate of $934 million to $944 million and also lower than market estimates of $934.1 million. according to data from Refinitiv.
While paid users of the Bumble app jumped 31% to 1.9 million in the quarter ended June 30, Badoo and other apps saw a cumulative decline of around 25% to 1.1 million.
Bumble’s revenue rose 18.4% to $220.5 million in the quarter, beating analysts’ estimate of $219.4 million, while a loss of 3 cents per share topped estimates for a loss of 1 cent.
(Reporting by Tiyashi Datta and Deborah Sophia in Bengaluru; Editing by Krishna Chandra Eluri)