Are women getting tired of making the first move? That’s what investors were fearing last week after Bumble (BMBL) reported a larger-than-expected loss for Q3.
Despite a 24% year-over-year revenue increase that beat analysts’ expectations, Bumble reported a net quarterly loss of $10.7m, more than double the expected loss of $4.7m. The main issue of concern was the decline in the dating app’s number of paying users. Bumble’s paying users fell from 2,927,300 in the second quarter to 2,866,000 in the third.
Investors and analysts were troubled over the fact that Bumble spent more than $55m last quarter on sales and marketing to increase its number of paying users, a 46% year-over-year increase that failed to pay off. The silver lining? The paying users who stuck around spent an average of 19% more than they did last year.
why it matters
Shares of BMBL plunged by almost 20% on Thursday after the disappointing news and continued to fall another 5% by Friday's market close.