Bumble Inc. (BMBL) witnessed a significant decrease in the company’s shares after the company disclosed a disappointing first-quarter outlook for 2025. The online dating platform experienced a 30% free fall in its shares after the company reported it expects Q1 revenue ranging from $242 million to $248 million, a 7-10% decrease compared to the previous year, and far short of$257 million analysts had previously anticipated.
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Q4’s Mixed Financial Results
Bumble’s Q4 financial and operational highlights showed a decrease in total revenue by 4.4% to $261.6 million, down from $273.6 million, with an unfavorable impact due to foreign currency movements amounting to $2.7 million.
However, the company’s fiscal fourth-quarter results showed some growth areas, with operating earnings of $37 million, compared to a loss of $6.9 million in the previous year. The number of total paying users also saw an increase of 5.3% to 4.2 million during the quarter.
In line with the company’s future strategies, Bumble is set to discontinue two of its acquired apps – Fruitz, a French dating app, and Official, an app designed to help couples strengthen their relationship. This restructuring is intended to focus more on its core businesses, Bumble and Badoo.
Further, the founder, Whitney Wolfe Herd, is due to resume the CEO role in mid-March following her departure in January 2014. This could potentially alter the company’s overall performance.
Analysts Lower Expectations
Analysts following the company quickly adjusted projected price targets downward due to the news. For instance, Stifel’s five-star analyst Mark Kelley lowered the price target on BMBL to $6 (from $7) while maintaining a Hold rating on the shares. He noted the company showed improvement in Q4 but disappointing guidance for Q1 as it continues to work through management turnover and persistent challenges differentiating itself from other dating apps.
