Bumble shares sank 33% on Thursday morning after the company reported second-quarter earnings that fell short of expectations.
Bumble’s second-quarter revenue came in at $269 million, short of the $273 million analysts anticipated. What shocked investors most was Bumble’s substantially lowered sales outlook for 2024. Bumble previously forecast revenue growth of 8% to 11% this year. Now, it says revenue will only grow 1% to 2%.
“While not entirely surprising given softer-trending data, the magnitude of the company’s FY24 guide-down caught even the most bearish investors off-guard,” Deutsche Bank analysts said in a note to investors Thursday. They noted that “the company is embarking on a strategy to return to its roots as the go-to brand for women” — it’s been especially a go-to for millennial women — which it said is “the correct strategic decision.”
Bumble’s stock price is down a staggering 70% over the last year. The company’s attempts to attract younger generations have gone haywire. The company devised ads that strove to make edgy jokes to capture younger users in April. Instead, the ads offended and Bumble had to apologize for controversial billboards mocking celibacy. Bumble’s push into non-dating hasn’t helped either.