Bumble Meets Q1 Revenue Estimates, Calms Investor Concerns with AI Revamp and Cost Cuts
Bumble Inc. (BMBL.O) reported a 7% decline in first-quarter revenue on Wednesday, but still met Wall Street expectations, helping to ease investor fears over competition and engagement issues in the dating app market. Shares rose 7% in after-hours trading following the update.
Key Financials:
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Q1 Revenue: $247.1M (vs. $246.2M expected)
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Includes a $5.9M foreign exchange headwind
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Paying users (Bumble app): down ~1% to 2.7 million
The company, which competes with Match Group (Tinder) and others, said it is working to revamp its app experience, aiming to enhance match quality, safety, and user verification by integrating AI-based features, including dating coaching tools.
“The focus is on improving the user experience,” said Chandler Willison, analyst at M Science, suggesting price hikes may follow the product updates.
Strategic Moves:
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Cut $20 million from marketing spend
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Focused on AI innovation and app quality
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Prioritizing profitability growth and cost efficiency
Outlook:
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Q2 Revenue Forecast: $235M – $243M (midpoint slightly below $243M consensus)
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Expects sequential improvement in revenue trend and continued profit growth
“There is some encouragement to be taken from these numbers about how Bumble can weather the current environment,” said Jamie Lumley of Carbon Arc, noting the company’s resilience in a mature and macro-sensitive market.
While user engagement and competition remain challenges, Bumble’s proactive steps to cut costs and modernize its platform offer a more optimistic outlook moving into the second half of 2025.
