Bumble's stock is tanking. Its answer is to bank on millennial women, again

Addl Spritzler data below. About 350 million people use dating Ap, with Tinder is the largest dating ap (88 million users, twice the revenue of Bumble). About 80% of the activity occurs on Apple devices. The Match Group generates the highest revenue per user.

Sadly revenue may be leveling off as people decide to spend more time with their dog or cat.

• Revenue in the Online Dating market is projected to reach US$3.15bn in 2024.

• Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.48%, resulting in a projected market volume of US$3.56bn by 2029.

• In the Online Dating market, the number of users is expected to amount to 470.0m users by 2029.

• User penetration will be 5.1% in 2024 and is expected to hit 5.8% by 2029.

• The average revenue per user (ARPU) is expected to amount to US$7.91.

• In global comparison, most revenue will be generated in the United States (US$1,392.00m in 2024).

• With a projected rate of 17.7%, the user penetration in the Online Dating market is highest in the United States.

  
  

Bumble's stock is tanking. Its answer is to bank on millennial women, again

Bumble significantly lowered its revenue outlook for the year

By Laura Bratton

PublishedYesterday

Bumble shares sank 33% on Thursday morning after the company reported second-quarter earnings that fell short of expectations.

Bumble’s second-quarter revenue came in at $269 million, short of the $273 million analysts anticipated. What shocked investors most was Bumble’s substantially lowered sales outlook for 2024. Bumble previously forecast revenue growth of 8% to 11% this year. Now, it says revenue will only grow 1% to 2%.

“While not entirely surprising given softer-trending data, the magnitude of the company’s FY24 guide-down caught even the most bearish investors off-guard,” Deutsche Bank analysts said in a note to investors Thursday. They noted that “the company is embarking on a strategy to return to its roots as the go-to brand for women” — it’s been especially a go-to for millennial women — which it said is “the correct strategic decision.”

Bumble’s stock price is down a staggering 70% over the last year. The company’s attempts to attract younger generations have gone haywire. The company devised ads that strove to make edgy jokes to capture younger users in April. Instead, the ads offended and Bumble had to apologize for controversial billboards mocking celibacy. Bumble’s push into non-dating hasn’t helped either.