Bumble, a once-powerful force in online dating, is facing a reckoning.
The company reported weak Q4 2023 results today, with a $32 million net loss and $273.6 million in revenue. Earnings fell below Wall Street expectations and led to a disappointing Q1 2024 forecast, causing Bumble’s stock to drop approximately 10% in after-hours trading.
To address the situation, Bumble is implementing significant changes.
CEO Lidiane Jones announced a reduction of 37% of Bumble’s workforce, about 350 employees, along with plans for an app overhaul to revive growth. The new product roadmap will focus on AI, enhanced safety measures, and features aimed at younger audiences.
Jones stated, “We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that foster healthy and equitable relationships.”
Bumble is facing challenges from its main competitor, Match Group, which owns Tinder, Hinge, and Match, among other dating apps, and is aggressively targeting Gen Z users.
The company’s payer growth has slowed since late 2021, with many new features introduced not resonating with the user base.
In addition to external challenges, Bumble has undergone internal shifts, with founder Whitney Wolfe Herd transitioning from CEO to executive chair in November, and Lidiane Jones, who joined from Slack in January, appointing four new C-suite executives in the past week.
Bumble is not the only dating app experiencing slower growth, as overall revenue from paid users has been declining across the industry.
To address this trend, platforms like Tinder are focusing on long-term relationships, while Hinge is promoting in-person meetups through events and sponsorships.
