Bumble is undertaking a broad product overhaul that includes a platform migration, redesigned matching algorithms, new conversation tools and upcoming group experiences as the dating company attempts to stabilize engagement following a 16.4% decline in paying users.
Management described the initiative as a reimagining of the core Bumble experience intended to help members make connections more intuitively and move more quickly toward in-person dates. The roadmap includes new ways to begin conversations, expanded opportunities to meet offline and new group experiences.
The changes come against a challenging financial backdrop. Total paying users declined to approximately 3.2 million from 3.8 million a year earlier. Bumble App paying users fell to approximately 2.08 million from 2.5 million, while Badoo App and Other paying users declined to approximately 1.08 million from 1.28 million.
Total revenue declined 15.2% to $210.5 million. Bumble App revenue fell 14.7% to $171.7 million, while Badoo App and Other revenue declined 17.1% to $38.8 million. Average revenue per paying user nevertheless increased 1.2% to $21.96.
Bumble reported a $127.9 million net loss, including a $169.3 million impairment charge. That compares with a $367 million loss a year earlier that included a $404.9 million impairment.
Adjusted EBITDA was $72.9 million, representing a 34.6% margin, compared with $94.6 million and a 38.1% margin in the prior-year period.
Bumble ended June with approximately $154 million of cash and equivalents and $451 million of total debt. For Q3, the company expects total revenue of $205 million to $213 million and Adjusted EBITDA of $56 million to $60 million.
Management said it is deliberately investing in product, technology and brand ahead of the broader product roadmap, with the company attempting to improve the quality and engagement of its member base rather than prioritizing near-term user volume alone.
KEY QUOTE:
“There is more happening at Bumble today than at any point in years. We are completing our platform migration, transforming our matching algorithms, giving members new ways to start a conversation, expanding how they meet in real life, and building toward new group experiences.”
Whitney Wolfe Herd, Founder and CEO of Bumble
