Contributed by: kellyseal on Wednesday, May 26 2021 @ 09:18 am
Last modified on Wednesday, May 26 2021 @ 09:39 am
Dating app Bumble exceeded analysts’ expectations when the company reported[*1] its first quarter earnings, with revenues and new subscriber numbers significantly higher than what was initially predicted.
Revenue for the dating company rose 43 percent from the same quarter in 2020 to $171 million, up from $79.1 million this time last year, beating expert estimates and even the company’s own predictions. According to Marketwatch[*2] , Bumble shared that the number of total paying users also rose significantly, up 30 percent to 2.8 million compared to 2.2 million from the first quarter of 2020.
This past quarter was also good for Bumbles other dating brands like Badoo. Revenue for them increased year-over-year to $58.1 million.
The company also reported net earnings of $323.4 million, compared with a loss of $55.8 million in the first quarter of 2020.
The female-forward dating app made its stock market debut this past February, so this is the first earnings report for the company since it went public. The stock debuted strong but fell in recent weeks amid lowered expectations for company profits, but Bumble showed this week that they should not be underestimated.
Marketwatch reported that after an initial spike in its stock, share prices still fell by end of day to close at $47.24 on May 12th, the day the report came out.
“Our results and first-quarter momentum validate the strength of our mission and our brand,” said Whitney Wolfe Herd, founder and chief executive of Bumble Inc. in the company’s statement. “We were able to combine our safety, mission and women-first narratives throughout the quarter in a manner that drove notable growth in user engagement and retention globally.”
As Bumble looks toward the future, post-pandemic, it aims to engage users both online and offline, according to a recent story in The Wall Street Journal. The company’s first order of business is opening a wine bar in New York this summer, not just for dates but for people to network and make friends. As dating apps continue to offer new features for users to stay engaged on their platforms, and in light of Match Group’s move toward social platforms with the purchase of Hyperconnect earlier this year, Bumble’s move to focus on in-person events is notable.
Bumble owns a number of dating apps including Badoo, Bumble BFF and Bumble Bizz for networking, intended to help women better connect in dating friendship and work. Interestingly, the company saw engagement grow on its Bumble BFF app 44 percent among women, and a whopping 83 percent among men.
Wolf Herd said that making friends online will be the “next social growth horizon,” and will be increasing its marketing budget to meet demands of its users as they start to get vaccinated and venture out to meet in person.