Bumble, the dating app operator, reported a decline in paying users during the second quarter, casting doubts on the speed of its AI-fueled turnaround efforts and causing its shares to drop 8% in after-hours trading. The company’s paying user base fell 8.7% to 3.8 million, highlighting ongoing challenges in re-engaging its core audience.
Despite deploying artificial intelligence tools to fight industry-wide “dating fatigue,” analysts note that Bumble lags behind larger rival Match Group, whose AI initiatives are more advanced. Bumble’s recent AI-powered coaching hub aims to enhance user experience by blending human expertise with machine learning, but much of its innovation remains in early testing stages.
Financially, Bumble posted a net loss of $367 million in Q2, including $404.9 million in non-cash impairment charges, a significant turnaround from a net profit of $37.7 million a year earlier. The company did not elaborate on the one-time costs.
To attract younger users, Bumble plans to launch a new Bumble BFF app this month aimed at Gen Z, alongside community-driven offline events designed to foster friendships beyond dating.
Revenue for the quarter came in at $248.2 million, slightly above analysts’ expectations of $245.1 million. For the third quarter, Bumble forecasts revenue between $240 million and $248 million, exceeding the average estimate of $241.4 million.
The company also announced a leadership change, appointing Kevin Cook—formerly CFO at Cloudera—as its new CFO, effective August 12, replacing interim CFO Ronald Fior.