Bumble cuts full-year revenue forecast amid mounting competition

On Wednesday, Reuters-Bumble Inc cut its full-year revenue forecast, signalling a hit from stiff competition from rivals such as Match Group Inc in the online dating market.

The shares of Austin, Texas-based Bumble fell 7% in trading after the bell.

While Bumble has seen a surge in popularity - with paying users growing 31% to 1.9 million in the quarter - its other dating app Badoo, which is mostly used in Western Europe by the middle class segment, is under pressure due to ongoing economic uncertainties.

In the quarter ended June 30, Bumble reported revenue of $50.8 million from Badoo and other apps, a 13.7% decline from a year earlier. In the same period, Bumble's app revenue jumped 33.2% to $169.6 million.

The company expects revenue between $920 million and $930 million in the year 2022, including a $20 million impact from the conflict in Ukraine, lower than its previous estimate of $934 million to $944 million. According to Refinitiv's data, analysts expect to see $934.1 million by the end of the day.

For the quarter ended June 30, Bumble's revenue rose 18.4% to $220.5 million, beating analysts' average estimate of $219.4 million.