(Reuters) -Bumble Inc cut its full-year revenue forecast on Wednesday, signaling a hit from stiff competition from rivals such as Match Group Inc in the online dating market.
Shares of Austin, Texas-based Bumble fell 7% in trading after the bell.
While Bumble has experienced a surge in popularity – with paying users growing 31% to 1.9 million in the quarter – its other dating app, Badoo, which is mostly used in Western Europe by the urban middle class segment, remains under pressure from ongoing economic uncertainties.
Bumble reported revenue of $50.8 million from Badoo and other apps in the quarter ended June 30, a 13.7% decline from a year earlier. In contrast, Bumble app revenue jumped 33.2% to $169.6 million in the same period.
The company now expects revenue between $920 million and $930 million for 2022, including a $20 million impact from the conflict in Ukraine, lower than its prior estimate of $934 million to $944 million. Analysts on average are expecting $934.1 million, according to Refinitiv data.
Earlier this month, Tinder-parent Match also posted a disappointing forecast and said it faced a number of challenges in the second quarter, including a hit from a stronger dollar, a drop in paying subscribers for some apps and a slow recovery in certain markets.
For the quarter ended June 30, Bumble’s revenue rose 18.4% to $220.5 million, edging past analysts’ average estimate of $219.4 million.
(Reporting by Tiyashi Datta and Deborah Sophia in Bengaluru; Editing by Krishna Chandra Eluri)
