Bumble Inc’s revenue forecast for the fourth quarter of 2022 is below Wall Street expectations, with its platform Badoo under pressure.
A new report from Reuters highlights that Bumble Inc is undergoing challenges with product launch delays, coming at a time where inflation is affecting users. The result of this is that the company’s shares decreased 13% in extended trading.
Other factors highlighted are the strong dollar and the war in Ukraine. Adjusted for these additional factors, the company could expect its revenue growth to be 10% higher, says Whitney Wolfe Herd, CEO and Founder of Bumble Inc.
“Some of our user segments are facing greater pressure on disposable income, and these segments are renewing their subscriptions at a modestly lower rate”, she shared in an earnings call.
This news comes at a time where competition with the Match Group continues to grow, after the rival dating company impressed in its recent revenue estimates after Tinder was found to have increased its paying users.
Bumble’s revenue for the current quarter is now expected to be around $235 million, lower than Wall Street’s estimate of $254.5 million, Reuters reported.
Badoo, which is mainly used in Western Europe, was identified as particularly under pressure. This comes as Bumble pulled its apps from Russia and Belarus, in the wake of the ongoing Ukraine conflict.