Bumble Inc. reported a drop in paying users during the second quarter, dimming investor hopes for a near-term rebound and sending its shares down 8 per cent in after-hours trading on Wednesday.
The dating app operator, which also runs the Bumble BFF friendship platform, said its total paying user base fell by 8.7 per cent year-over-year to 3.8 million in the quarter ended June 30. The decline comes as the broader online dating industry grapples with what many analysts describe as “dating fatigue.”
In response, Bumble has been leaning into artificial intelligence and new features in an attempt to re-engage users. The company recently launched a coaching hub that combines AI with human guidance to help users build more meaningful connections.
It also plans to roll out a revamped Bumble BFF app later this month aimed at attracting Gen Z users, along with community events to encourage in-person friendships.
Despite those efforts, analysts say Bumble continues to trail behind its larger competitor, Match Group — the parent company of Tinder — with many of Bumble’s innovations still in early stages of testing.
“The primary concern at this stage remains the headwinds in paying user growth, which Bumble needs to address to re-engage its core audience,” said Chandler Willison, research analyst at M Science.
Financially, the company posted a net loss of $367 million in Q2, compared to a $37.7 million profit in the same quarter last year. The figure includes $404.9 million in non-cash impairment charges. Bumble did not disclose the specifics of those one-time costs.
Still, revenue came in slightly ahead of expectations at $248.2 million, topping analysts’ forecast of $245.1 million, according to LSEG data. The company also issued an optimistic outlook for Q3, projecting revenue between $240 million and $248 million — mostly above Wall Street’s consensus estimate of $241.4 million.
Bumble also announced the appointment of Kevin Cook, former CFO of Cloudera, as its new chief financial officer. Cook will assume the role on August 12, succeeding interim CFO Ronald Fior.
