Bumble drops after earnings and guidance miss Wall Street’s expectations
The company missed estimates for operating income and punted completely on reporting net income.
Bumble shares fell aftermarket on Tuesday as the company reported earnings that missed Wall Street estimates and gave first-quarter guidance that paints an even gloomier picture.
The company reported operating income of $37 million, compared to the $40 million analysts polled by FactSet were expecting. The company also said it expects to bring in between $242 million and $248 million in revenue in the first three months of 2025, compared to the $257 million analysts were expecting.
Bumble did not provide a figure for its quarterly net loss because it’s still finishing up some accounting. Analysts expect the company to bring in $27 million in net income for the quarter and rack up a net loss of $608 million for 2024.
Bumble shares fell 13% in after-hours trading minutes after the results were posted. Bumble is down nearly 40% in the past year and nearly 90% since its 2021 initial public offering.
The earnings report is the first since the company announced that its CEO, Lidiane Jones, would be stepping down for personal reasons. Come mid-March, she will be replaced by Whitney Wolfe Herd, Bumble’s founder who herself had stepped down as CEO at the beginning of 2024.
Bumble’s larger competitor, Match Group, also announced earlier this month that CEO Bernard Kim would be leaving his position and is being replaced by Spencer Rascoff, who was previously CEO of Zillow.
The executive shake-ups come as investors are frustrated with stagnating growth in dating apps. Sales for the two major dating app platforms stayed virtually flat from 2023 to 2024.
Now both Bumble and Match have started 2025 with lackluster guidances: Match, which owns Tinder, Hinge, and OkCupid, said it expects sales to range from $3.4 billion to $3.5 billion in all of 2025. Prior to that guidance, analysts were expecting a little over $3.5 billion.
