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AUSTIN, Texas - Bumble Inc. (NASDAQ:BMBL) reported second-quarter revenue of $248.2 million, exceeding analyst estimates of $244.17 million but still representing an 8% decline from $268.6 million in the same period last year. The dating app company posted a significant loss of -$2.45 per share compared to earnings of $0.22 per share a year ago, as it recorded $404.9 million in non-cash impairment charges.
The company’s shares fell 5% following the earnings release, as investors reacted to the continued decline in the company’s user base. Total (EPA:TTEF) paying users decreased 8.7% to 3.8 million from 4.1 million in the year-ago quarter, reflecting what the company described as a strategic shift to "improve the health of our membership base."
Despite the revenue decline, Bumble’s adjusted EBITDA increased to $94.6 million, or 38.1% of revenue, compared to $75.0 million, or 27.9% of revenue in the prior-year period, as the company significantly reduced its cost structure.
"We are executing a clear framework to strengthen our member base with higher quality and more intentional members, and we have significantly streamlined our cost structure while accelerating innovation across AI, product, and technology," said Whitney Wolfe Herd, Founder & CEO of Bumble Inc.
For the third quarter, Bumble expects revenue between $240 million and $248 million, with Bumble App revenue of $194 million to $200 million. The company also forecasts adjusted EBITDA of $79 million to $84 million.
"These moves have greatly improved our operational efficiency and created room to reinvest in brand, trust, talent, and product innovation while protecting cash generation," said Ron Fior, Interim CFO of Bumble Inc., who will be replaced as part of a CFO transition announced separately.
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