:max_bytes(150000):strip_icc()/GettyImages-1968294576-fe658a7a37994b3eab679990060ae18f.jpg "Bumble Stock Hits All-Time Low as Dating Service Slashes Outlook")
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Key Takeaways
- Bumble cut its full-year outlook as customers spent less to use the online dating service.
- Second-quarter revenue fell short of estimates.
- Shares of Bumble sank to a record low.
Shares of Bumble (BMBL) tumbled to their all-time low Thursday after the online dating service slashed its guidance as customers spent less on it.
The company that operates the eponymous app now expects full-year revenue to rise 1% to 2% year-over-year, compared with its earlier forecast of 8% to 11%, and app revenue to rise 1.5% to 2.5%, down from 9% to 11%. It also sees adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increasing at least 200 basis points (bps), versus the prior forecast of at least 300 bps.
Chief Financial Officer (CFO) Anu Subramanian added that the change in guidance reflects “actions we are taking to position Bumble to reignite user growth, deliver improved customer value, and drive long-term revenue growth.”
Bumble’s Q2 Revenue Misses Estimates
The company’s second-quarter revenue was short of estimates, rising 3.4% to $268.6 million. Earnings per share (EPS) of $0.22 was better than anticipated.
While total paying users climbed 13.9% to 4.1 million, the total average revenue per paying user fell 8.0% to $21.37.
Bumble shares plummeted 37% to $5.10 as of 10:05 a.m. ET Thursday after hitting an all-time low $4.80 soon after markets opened. They have lost about two-thirds of their value this year.