Bumble shares slumped nearly 36% to a fresh record low after the women-centric dating app slashed its annual sales growth forecast and paused some revenue-generation efforts, turning the spotlight on the pace of a turnaround.
Last trading at $5.11, the $1 billion company was set to lose more than $350 million in market value. The fortunes of Bumble have turned since its $14 billion blockbuster Nasdaq debut in 2021 dating app operators grapple with a post-pandemic decline in growth.
The Austin, Texas-based company said late Wednesday that 2024 revenue will gain by 1% to 2% from a year earlier. It had previously forecast growth of as much as 11%, and Wall Street was expecting 8.4%, based on estimates compiled by Bloomberg. Second-quarter results also largely missed forecasts.
Revenue for the period ended June 30 increased 3.4% to $268.6 million, missing the average analyst estimate of $273.2 million. The number of users paying for Bumble — an important metric for investors — rose 14.7% to 2.8 million, in line with Wall Street estimates.
Read More: Bumble set to wipe $350 billion in market value; stock crashes 33% after
