Bumble Q1 2025 slides: revenue falls 8% as user growth stalls

Introduction & Market Context

Bumble Inc. (NASDAQ:BMBL) released its Q1 2025 earnings presentation on May 7, 2025, revealing significant revenue declines across its dating app portfolio. The company, which operates the Bumble and Badoo dating apps, reported an 8% year-over-year decrease in total revenue, continuing a downward trend observed in recent quarters. Despite these challenges, Bumble’s stock, which closed at $4.39, saw a 6.38% increase in after-hours trading to $4.67, suggesting investors may have anticipated worse results.

The Q1 results come after Whitney Wolf Herd’s return as CEO, as mentioned in previous earnings communications, signaling the company’s focus on rebuilding trust in dating technology and enhancing user experience amid competitive pressures in the online dating market.

Quarterly Performance Highlights

Bumble’s Q1 2025 financial results showed broad declines across key metrics compared to the same period last year. Total (EPA:TTEF) revenue reached $247.1 million, representing an 8% decrease year-over-year, while the flagship Bumble App generated $201.8 million in revenue, down 6% from Q1 2024.

As shown in the following financial highlights table, the company maintained its total paying user base at 4.0 million (flat year-over-year), but saw a 1% decline in Bumble App paying users to 2.7 million:

The company’s profitability metrics also showed significant pressure, with net earnings falling 41% to $19.8 million and Adjusted EBITDA declining 13% to $64.4 million compared to the same period last year.

Detailed Financial Analysis

Examining Bumble’s revenue trends over recent quarters reveals a consistent downward trajectory. After reaching a peak of $274 million in Q3 2024, total revenue has declined for two consecutive quarters to the current $247 million.

As illustrated in the following revenue trend chart, while annual revenue for FY 2024 showed a modest 2% growth over FY 2023, the quarterly pattern indicates mounting challenges:

A closer look at the Bumble App’s performance metrics shows concerning trends in both user acquisition and monetization. The number of paying users has declined by 104,000 in Q1 2025 compared to the previous quarter, while Average Revenue Per Paying User (ARPPU) has steadily decreased from $26.34 in Q1 2024 to $24.84 in Q1 2025.

The following chart illustrates these trends for the Bumble App:

Similar patterns are evident in the company’s Badoo App & Other segment, which experienced a 60,000 quarter-over-quarter decline in paying users and a continued ARPPU decrease to $10.72 in Q1 2025:

Profitability metrics also show a concerning trend. Adjusted EBITDA has fallen to $64 million in Q1 2025, representing a 26% margin – the lowest in the five quarters shown. This contrasts with the 30% margin achieved in Q3 2024.

The following chart details the Adjusted EBITDA and margin trends:

Forward Guidance

Looking ahead to Q2 2025, Bumble provided guidance that suggests continued challenges. The company projects total revenue between $235-$243 million, representing a potential sequential decline from Q1 2025’s $247.1 million. Bumble App revenue is expected to be between $193-$199 million, also down from the current quarter.

As shown in the following outlook slide, Adjusted EBITDA is projected to be between $79-$84 million:

This guidance indicates that while the company expects profitability to improve in Q2 2025 compared to Q1, revenue challenges are likely to persist. The projected revenue range would represent a year-over-year decline of approximately 10-13% compared to Q2 2024’s $269 million.

Market Reaction & Conclusion

Despite the declining metrics across revenue, users, and profitability, Bumble’s stock saw a positive after-hours reaction, rising 6.38% to $4.67. This suggests that investors may have anticipated even worse results or are responding positively to the company’s strategic initiatives under returning CEO Whitney Wolf Herd.

However, the stock remains significantly below its 52-week high of $12.49, reflecting ongoing investor concerns about the company’s growth trajectory and competitive positioning in the online dating market. With a 52-week low of $3.55, the current price indicates that while immediate market sentiment has improved, substantial challenges remain.

Bumble’s Q1 2025 results and Q2 outlook highlight the difficulties facing the company as it works to revitalize its user growth and revenue performance. The return of founder Whitney Wolf Herd as CEO signals a renewed focus on product innovation and user experience, which will be critical factors in determining whether Bumble can reverse its current downward trends in the highly competitive dating app landscape.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.