Bumble shares plunge 20% as COVID-19 hurts user growth

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Whitney Wolfe Herd lasting  successful  beforehand   of a yellowish  surface  with the sanction  and logo of bumble written connected  it Shares successful Bumble, led by Whitney Wolfe Herd, person mislaid astir 32 percent since the dating app's marketplace debut successful February 2021. Vivien Killilea/Getty Images for Bumble

Bumble posted its archetypal sequential diminution successful idiosyncratic maturation since the dating app proprietor went nationalist successful February, arsenic caller pandemic restrictions crimped demand successful immoderate markets, sending shares plunging astir 20 percent Friday.

In the 3rd quarter, full paying users fell 2 percent from the anterior 4th to 2.9 cardinal arsenic the planetary Delta variant surge prompted renewed lockdowns, curtailing user spending connected dating app subscriptions and in-app purchases.

Bumble’s different dating app, Badoo, which is mostly utilized by the municipality mediate people segment, besides saw idiosyncratic maturation affected by the economical pressures brought connected by the wellness situation successful immoderate markets.

“Badoo operates successful a ample fig of markets wherever the pandemic is inactive a important situation … with differences successful gait of betterment by region,” Chief Executive Officer Whitney Wolfe Herd said successful a post-earnings call.

“While galore cardinal markets specified arsenic Russia and Brazil person shown beardown maturation successful some paying users and idiosyncratic revenue, different markets similar France and Italy person lagged.”

Bumble dating app logo connected  the App Store seen connected  a smartphone successful  this photograph  illustrationFresh pandemic restrictions crimped request for Bumble successful immoderate markets, with the fig of full paying users dropping 2 percent from the anterior 4th to 2.9 million.NurPhoto via Getty Images

Bumble shares were down 19.16 percent to $38.60 successful midday trading Friday. The company’s shares have mislaid astir 32 percent since its marketplace debut successful February.

Despite the slowdown, Texas-based Bumble raised its full-year gross forecast and said it remained well-positioned for the upcoming 4th arsenic it continues to grow internationally. Rival Match Group, however, projected fourth-quarter gross beneath estimates arsenic COVID-19 hit the Tinder owner’s concern successful Asia.

Bumble logo displayed connected  a telephone  surface  is seen with insubstantial  silhouettes looking similar  a antheral   and a pistillate   successful  this illustration photograph  taken successful  Krakow, Poland connected  July 31, 2021. (Photo by Jakub Porzycki/NurPhoto via Getty Images)Bumble raised its full-year gross forecast contempt the slowdown, saying it was well-positioned for the upcoming 4th arsenic it continues to grow internationally.NurPhoto via Getty Images

Bumble expects current-quarter gross betwixt $208 cardinal and $211 million, supra analysts’ estimates of $206.0 million, according to Refinitiv IBES data.

Total gross was $200.5 cardinal successful the 3rd quarter, compared with estimates of $198.8 million.