Bumble to cut about 350 roles, forecasts weak first-quarter revenue
Bumble said on Tuesday it would cut about 350 roles, marking new CEO Lidiane Jones' first big move, after the online dating company forecast disappointing first-quarter revenue as it grapples with a slowdown in user spending.
Shares of the Austin, Texas-based company, which offers dating apps such as Bumble, Badoo, and Fruitz, fell more than 7% in extended trading.
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Offering CollegeCourseWebsiteMITMIT Technology Leadership and InnovationVisitIIM LucknowIIML Executive Programme in FinTech, Banking & Applied Risk ManagementVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisit Bumble expects to incur about $20 million to $25 million in one-time charges related to the job cuts, the majority of which will be recognized in the first two quarters of 2024.
The company competes with larger rival Match Group, which is looking to target younger users with intense marketing initiatives, as sticky inflation and high borrowing costs affect non-essential purchases. Last month, Match forecast current-quarter revenue below estimates.
Bumble would relaunch its eponymous app and revamp its premium plus offering, CEO Jones said on a post-earnings call.
«As core markets like the U.S. mature, the focus at Bumble will be on reigniting ARPU growth and driving further market expansion at a global level,» Third Bridge analyst Jamie Lumley said.
Bumble expects annual revenue growth between 8% to 11%, compared with estimate of 13.3% growth, according to
