Bumble's Q3 Revenue Forecast Misses Wall Street Estimates

Lower-than-expected revenue guidance weighs on Bumble's stock

Key Takeaways:

• Bumble forecasts Q3 revenue between $269 million and $275 million, below analysts' estimates.
• Total revenue grew 18% year-over-year to $276 million in Q2.
• The dating app company cites economic headwinds and competition as factors in its lowered guidance.

Bumble Inc. (BMBL), the parent company of popular dating apps Bumble, Badoo, and Fruitz, has released its financial forecast for the third quarter of 2024, projecting revenue below market expectations.

According to Bumble's guidance, the company anticipates third-quarter revenue in the range of $269 million to $275 million. This range falls short of the $280 million average estimate from Wall Street analysts.

Bumble's revenue forecast has had a negative impact on its stock price, which dropped by approximately 5% in pre-market trading.

Factors Contributing to Lowered Guidance:

• Economic headwinds: Bumble attributes its lowered revenue outlook to ongoing economic uncertainty, which has impacted consumer spending.
• Increased competition: The company also acknowledges the intensifying competition in the online dating market, with new platforms and features emerging.

Despite the lowered revenue guidance, Bumble reported strong financial results in the second quarter of 2024, with total revenue increasing by 18% year-over-year to $276 million.

The company's flagship app, Bumble, continues to drive growth, with monthly active users increasing by 14% year-over-year to 44.3 million.

Bumble remains committed to investing in its platform and expanding its global reach. The company has recently launched several new features, including video chat and voice calling, to enhance the user experience.

Analysts remain cautiously optimistic about Bumble's long-term prospects, citing the company's strong brand recognition and loyal user base. However, they emphasize the need for Bumble to execute effectively on its growth strategy amid increasing competition.