Shares of Bumble (BMBL) plummeted to an all-time low on Thursday after the online dating service significantly lowered its revenue guidance due to reduced customer spending.
Bumble now projects full-year revenue growth of just 1% to 2% year-over-year, a steep decline from its previous forecast of 8% to 11%. App revenue expectations have also been revised down to 1.5% to 2.5%, from the earlier 9% to 11%. Additionally, the company now anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise by at least 200 basis points (bps), compared to the previous forecast of at least 300 bps.
Chief Financial Officer (CFO) Anu Subramanian explained that the updated guidance reflects the company’s efforts to “reignite user growth, deliver improved customer value, and drive long-term revenue growth.”
Bumble’s Q2 Revenue Falls Short of Estimates
In the second quarter, Bumble reported revenue growth of 3.4% to $268.6 million, missing analysts’ estimates. However, the earnings per share (EPS) of $0.22 surpassed expectations.
Despite a 13.9% increase in total paying users, reaching 4.1 million, the average revenue per paying user fell by 8.0% to $21.37.
As of 10:05 a.m. ET on Thursday, Bumble shares had nosedived 37% to $5.10, after hitting an all-time low of $4.80 shortly after the market opened. The stock has lost approximately two-thirds of its value this year.
