Revenue Growth and Market Position
Bumble managed to grow revenue over the last year. The international, freemium dating market is expected to grow 18% annually until 2025 with Bumble currently holding just 2% of it. Bumble faces competition from Match Group, which has also appointed new CEOs from outside the online dating industry.
Bumble reports quarterly results on Tuesday afternoon. Motley Fool Issues Rare “All In” Buy Alert. Bumble Stock Quote. Market Cap. $2B.
App Features and User Engagement
The Bumble App Featuring "Date", "BFF" and "Bizz" Modes. The Bumble app is an Android & IOS App founded in 2014 by current CEO Whitney Wolfe Herd. All three of these platforms work in the same way: users swipe left (no) or swipe right (yes).
Financial Challenges
Why are Bumble shares dropping?
Shares of Bumble lost ground last month, falling 12%. Badoo’s usership fell more than 8% YOY. After a highly successful IPO, shares of Bumble Inc have fallen 24% from their highs.
Despite the pandemic creating an environment favorable to dating apps, Bumble has grappled with challenges in turning that into consistent profitability. In Q3/2023, Bumble reported revenue of $275.51 million, up by 18.4% Y/Y. It earned just 12 cents a share. BMBL stock, with a P/E ratio over 50 times, could face further losses.
Is Bumble a profitable company?
Although Bumble’s revenue has grown, achieving consistent profitability remains a question. In the third quarter of 2022, Bumble’s revenue grew, but the company suffered a net loss. Paid user growth didn’t meet expectations, and investor worries include the potential decline in engagement post-pandemic.
Platform Features and Paid Offerings
The app is free for basic functions and earns revenue through "Bumble Coins" or subscriptions. Paid features include "Spotlight" and "Bumble Boost," similar to Tinder’s "Boost."
Overall, while Bumble continues to grow its user base, the platform’s ability to monetize effectively and produce consistent profits is yet to be seen.