Bumble User Decline Raises Doubts Over AI Strategy Amid Revenue Beat
- tech360.tv
- 5 days ago
- 2 min read
Bumble reported a drop in paying users for the second quarter, sparking concerns over the effectiveness and speed of its artificial intelligence-driven revamp. The announcement sent shares down 8% in extended trading on Wednesday.
Credit: BUMBLE
The dating app operator said total paying users fell 8.7% to 3.8 million in the three months ending June. Analysts pointed to the decline as a key issue, with M Science research analyst Chandler Willison noting that Bumble must address these headwinds to re-engage its core audience.
Despite the user drop, Bumble posted second-quarter revenue of USD 248.2 million, slightly above analysts’ expectations of USD 245.1 million, according to LSEG data.
The company reported a net loss of USD 367 million, compared to a net profit of USD 37.7 million a year earlier. The loss included USD 404.9 million in non-cash impairment charges. Bumble did not disclose the reasons behind the one-time cost.
To combat industry-wide "dating fatigue," Bumble has introduced a coaching hub powered by both human experts and AI. It also plans to launch a new Bumble BFF app this month aimed at Gen Z users, along with community-focused events to foster offline friendships.
Bumble named Kevin Cook, former financial head at Cloudera, as its new chief financial officer. He will replace interim CFO Ronald Fior starting Aug. 12.
Looking ahead, Bumble forecast third-quarter revenue between USD 240 million and USD 248 million, above the average analyst estimate of USD 241.4 million.
Bumble’s paying users dropped 8.7% to 3.8 million in Q2
Shares fell 8% in extended trading after the announcement
Net loss reached USD 367 million, including USD 404.9 million in impairment charges
Source: Reuters