Strong user growth drives Bumble's revenue beat, upbeat forecast
Bumble Inc forecast current-quarter revenue above estimates on Wednesday after beating expectations for the first, as more people turned to its online dating app to socialize while staying indoors during the COVID-19 pandemic.
The owner of the dating app that requires women to make the first move said total paying users surged 30% in the first three months of the year to 2.8 million, driving a more than 40% jump in revenue.
The company has added friendship and professional-focused features such as Bumble BFF and Bumble Bizz to its flagship app, betting on the friendship space emerging as the next social growth horizon.
Bumble forecast current-quarter revenue between $175 million and $178 million, above analysts' estimates of $174.4 million, according to Refinitiv IBES data.
"Our outlook is a realistic reflection of the product features we expect to launch and the market expansions we have planned for this year," said Chief Financial Officer Anu Subramanian.
Shares of Bumble were 1% lower in extended trading, having lost nearly 33% since their debut in February. They had closed down 7% in regular trading.
The company reported revenue of $170.7 million for the first quarter, beating estimates of $164.6 million.
Net earnings attributable to shareholders came in at $341.8 million, or $1.69 per share, compared with a loss of $55.8 million, or 2 cents per share, a year earlier.