Bumble Marks First User Growth Decline On COVID Hit

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Bumble Inc posted its first sequential decline in user numbers since the dating app owner went public in February this year, as ongoing pandemic restrictions negatively affected demand in many markets and shares fell 9% in extended trading.

In the third quarter, the total number of paying users decreased by 2% from Q2 to 2.9 million, as the worldwide increase in the Delta variant led to new closures that severely impacted mobility and consumer spending on subscriptions to dating apps and in-app purchases.

On the other hand, Bumble’s Badoo, another dating app aimed primarily at the urban middle class, is also having a negative impact on user growth, owing to the economic pressures caused by the pandemic in some of its key markets.

CEO Whitney Herd said in a conference call after the earnings: “While many key markets such as Russia and Brazil have shown strong growth in both paying users and user revenue, other markets like France and Italy have lagged.”

Bumble’s shares have fallen 32% since its stock market debut in February.

Despite declining user growth, Texas-based Bumble remains optimistic about its full-year revenue forecast and said it remains well-positioned for the coming quarter as it expands globally.

The Company is forecasting revenue of between $208 million and $211 million for the current quarter, above analyst forecasts of $206.0 million, and total revenue of $200.5 million for the third quarter, compared to an earlier forecast of $198.8 million.

For more information, read the original story in Reuters.

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