Once-powerful online dating site Bumble is facing a reckoning.
Today, the corporation reported a $32 million net loss and $273.6 million sales for Q4 2023. After-hours trading saw Bumble’s shares drop ~10% due to profits below Wall Street forecasts and a poor Q1 2024 prediction, despite a year-over-year increase.
Bumble is acting drastic to stop the bleeding.
CEO Lidiane Jones (shown above) revealed that 30% of Bumble’s staff, or 350 people, will be let off and that the app will be revamped to boost growth. Jones said the near-term product plan would include AI, safety, and kid-friendly features.
Jones stated at today’s earnings conference, “We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that create healthy and equitable relationships.” We have many users who adore the paradigm of online dating—sswiping, discovering, and searching—bbut others want greater freedom to experience and find people more organically and naturally.
Match Group, which owns Tinder, Hinge, and Match, is aggressively targeting Gen Z members, putting Bumble in a tough position.
Jones stated on the call that Bumble’s payer growth has been slowing since late 2021, and many of its app features in the previous 18 months haven’t resonated with users.
Following creator Whitney Wolfe Herd’s November resignation as CEO and appointment as executive chair, Bumble has faced internal organizational changes. Since joining Bumble from Slack in January, Jones has hired four new C-suite executives in the previous week.
Bumble isn’t alone in its slow growth. Match Group and other dating apps have faced decreased income from consumers unwilling to pay for expensive add-ons. According to 2023 Pew Research research, 41% of users 30 or older have paid for dating apps, while just 22% of the most attractive group are under 30.
Platforms have taken varied approaches to the downturn. Polls reveal Gen Z prefers long-term relationships over hookups, so Tinder is focusing on them. Hinge, among others, is sponsoring singles events with a fund and marketing.
Bumble lays off ~350 staff amid dating app struggles.
