Bumble Shares Plunge 28% as Company Forecasts Revenue Decline in Q1 2025

Bumble Inc. ( BMBL , Financials ) expects first-quarter 2025 revenue to decline between 7% and 10% year-over-year as the company focuses on strengthening its ecosystem and streamlining operations.

With total sales of $262 million and adjusted profits before interest, taxes, depreciation, and amortization of $73 million, both at the high end of its projection, the company's view matches fourth-quarter results that matched expectations.

The business expects first-quarter income between $242 million and $248 million; Bumble App sales are likely to drop 6%-8% year-over-year to fall between $198 million and $202 million . Management blamed the forecasted income drop on continuous attempts to improve the state of the platform, which should have caused a sequential drop of 100,000 to 120,000 paying customers.

Fourth-quarter statistics showed resiliency, according to CEO Lidiane Jones; the Bumble App's income exceeded forecasts even if paying customers saw a consecutive drop. She underlined important product changes like a Discover Tab, artificial intelligence-assisted picture picker, and fresh safety features including ID Verification and Share My Date. These projects seek to increase user trust and involvement.

Eliminating its Fruitz and Official applications will help the firm to concentrate on its main products, which include the Bumble BFF platform, thereby concentrating its resources. These adjustments are meant to "reaccelerate growth in Bumble App paying users and revenue," Jones stated.

The creator and previous CEO of Bumble, Whitney Wolfe Herd, will come back as chief executive in March 2025, a move anticipated to concentrate the brand strategy and product development of the firm.

With $65 million left under its approved buyback program, Chief Financial Officer Anu Subramanian said Bumble bought $40 million in shares during the fourth quarter.

Reflecting a 28% margin, Bumble stated sales of $1.072 billion and adjusted EBITDA of $304 million for the whole year 2024. The firm concluded the year with $204 million in cash and equivalents and produced $114 million in free cash flow. Geographic mix changes caused average revenue per paying user to drop 8% to $25.17 while fourth-quarter figures revealed a 5% growth in Bumble App paying users to 2.8 million.

Seeking to balance free and paid user experiences, management underlined intentions to invest in product momentum and change its revenue model.

While management maintained faith in the company's strategic orientation, analysts voiced worries about near-term revenue constraints and paying user reductions during the conference call. Emphasizing the part new safety elements play in reaching this aim, Wolfe Herd stated her emphasis will be on making online dating safer and more interesting.