Bumble Inc. (BMBL) shares dropped nearly 7% in the extended session Wednesday after the online dating company reported mixed quarterly results. The company reported a fourth-quarter loss of $159 million, or 85 cents a share, compared to the year-ago period’s loss of $14 million, or 7 cents a share. Revenue rose 17% to $241.6 million, which was above Wall Street expectations of $236 million.
Bumble provided guidance for 2023 revenue growth between 16% and 19%, and first-quarter revenue between $238 million and $243 million. Analysts polled by FactSet expected first-quarter revenue of $241 million. Despite the mixed results in the fourth quarter, Bumble shares ended the regular trading day up 3.64%.
The online dating industry has seen tremendous growth in the last decade, with many companies such as Bumble, Tinder, and OkCupid leading the way. With the rise of social media and mobile technology, online dating has become a popular way for people to meet and form relationships. Bumble has also been successful in leveraging its platform to offer other services such as Bumble Bizz and Bumble BFF, which allow users to network and find friends.
The online dating industry is expected to continue to grow in the coming years, with more people turning to digital platforms to find love and companionship. Bumble’s success in the fourth quarter was likely due to its focus on creating a safe and secure environment for its users. The company has implemented a range of safety measures such as photo verification, background checks, and a 24/7 customer support team. These measures have helped Bumble create a positive user experience and build trust with its users.
In addition, Bumble has also been successful in expanding its user base by offering a range of features such as in-app video chat and virtual dating. The company has also been successful in expanding its reach by partnering with other companies such as Spotify and Netflix. These partnerships have allowed Bumble to reach a wider audience and increase its user base.
Overall, Bumble’s fourth-quarter results show that the company is well-positioned to capitalize on the growth of the online dating industry. The company’s safety measures, range of features, and partnerships have all contributed to its success. With the industry expected to continue to grow in the coming years, Bumble is well-positioned to continue to be a leader in the online dating space.