Bumble BMBL-Q forecast third-quarter revenue below Wall Street estimates on Wednesday, signaling sluggish discretionary spending by users on its dating apps.
Shares of the Austin, Texas-based company, which offers dating apps such as Bumble, Badoo and Fruitz, fell 25 per cent in extended trading.
Bumble, which operates its eponymous app, expects third-quarter revenue between $269 million to $275 million, compared with analysts’ average estimate of $296.1 million, according to LSEG data.
Revenue for the second quarter came in at $268.6 million, missing analysts’ average estimate of $273 million.
The company faces stiff competition from bigger rival Match Group, which reported upbeat second-quarter revenue last week, driven by stabilizing trends at Tinder and robust growth at Hinge.
The results stoke concerns about its growth initiatives, including the launch of a refreshed Bumble app and new features such as “opening moves,” where women can set a post-match question.