Bumble shares plunge 20% as COVID-19 hurts user growth
Bumble recorded its first sequential decline in user growth since the owner of the dating app went public in February, as new pandemic restrictions slashed demand in some markets, causing stocks to fall by nearly 20%. % Friday.
In the third quarter, the total number of paid users fell 2% from the previous quarter to 2.9 million as the global surge in Delta variants led to further bottlenecks, reducing consumer spending on app subscriptions dating and in-app purchases.
Bumble’s other dating app, Badoo, which is primarily used by the urban middle class segment, has also seen user growth affected by economic pressures brought on by the health crisis in some markets.
“Badoo operates in a large number of markets where the pandemic is still a significant challenge …
“While many key markets such as Russia and Brazil have experienced strong growth in both paid users and user revenues, other markets such as France and Italy have fallen behind.”
Bumble shares were down 19.16% to $ 38.60 at noon on Friday. The company’s shares have lost about 32% since it debuted in the market in February.
Despite the slowdown, Texas-based Bumble raised its revenue forecast for the full year and said it remains well positioned for the coming quarter as it continues to expand internationally. Rival Match Group, however, forecast fourth quarter revenue below estimates as COVID-19 hit the Tinder owner’s business in Asia.
Bumble expects current quarter revenue of between $ 208 million and $ 211 million, higher than analysts’ estimate of $ 206.0 million, according to IBES data from Refinitiv.
Total revenue was $ 200.5 million in the third quarter, compared to an estimate of $ 198.8 million.