Bumble’s share price dropped to an all time low after the announcement of its Q3 results – the first time is has fallen below its IPO since it went public in February. The share price dropped by over 20% since the Q3 results were launched on Wednesday, taking the total drop to more than 30% in the last five days.
In the third quarter, total paying users fell 2 percent from the prior quarter to 2.9 million, as the global Delta variant surge prompted renewed lockdowns, curtailing consumer spending on dating app subscriptions and in-app purchases.
Badoo, an additional dating app owner by Bumble, also saw user growth affected by the economic pressures brought on by the health crisis in some markets.
Whitney Wolfe Herd, CEO of Bumble, said in a post-earnings call: “Badoo operates in a large number of markets where the pandemic is still a significant challenge … with differences in pace of recovery by region.
“While many key markets such as Russia and Brazil have shown strong growth in both paying users and user revenue, other markets like France and Italy have lagged.”
However, despite the decline in share prices, Bumble has raised its full-year forecast revenue, and said its still remains in a good positions for their planned international expansions in Q4’22.
Bumble expects current-quarter revenue between $208 million and $211 million, above the current analysts’ estimates of $206.0 million, according to Refinitiv IBES data. Total revenue was $200.5 million in the Q3, compared with estimates of $198.8 million.
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