Bumble President Tariq Shaukat Steps Down

Image: Bumble

After three years heading up Bumble, Inc., President Tariq Shaukat has announced he will be stepping down from his role effective September 1, 2023. He will be moving to an advisory role during the transition period, according to the company.

Shares of Bumble stock fell 6 percent the following day in response to the news, according to Investing.com. (The announcement was made after trading hours.) Shaukat has played an important role in the growth of the company, and is recognized for successfully leading it through its IPO in 2021. He’s also credited with expanding the user base, including in new and developing markets.

Analysts at Evercore ISI reacted to Shaukat’s exit, viewing it as “incrementally negative for the company,” according to Investing.com.

The analysts noted that Shaukat is one of the key leaders at Bumble and "likely one of the most impactful executives after Whitney [CEO Whitney Wolfe Herd], especially when it comes to international market expansion and product launches."

The SEC filing indicates that Shaukat’s resignation is voluntary and not the result of a schism with the executive team or conflict with the company. Although many are wondering why the former executive at Google Cloud decided to leave Bumble after such a short period of time. Tech Circle noted that the company’s stock price had dropped almost 22 percent earlier this year.

The tech and dating app industry overall has struggled in the past year after record growth during the pandemic. As more people have begun using dating apps, the platforms are simultaneously struggling for the first time with revenue growth, mainly due to inflation and economic concerns among users.

Bumble isn’t alone in experiencing setbacks this year. Match Group experienced its first-ever revenue decline, which the company said was due to product launch issues with Tinder as well as market considerations. It is focusing on in-app revenue streams by launching new premium features, as well as expanding its user base in growing markets.

"Tariq's resignation comes at a time when online dating category is out of favor among investors due to the slowdown in the category leader (Tinder), macro headwinds, and growing penetration levels,” the Evercore ISI analysts said, according to Investing.com. “Tariq's resignation could create a distraction for Bumble's management team at a time when the company will need to continue to operate successfully and gain share."

“We will closely watch the company's announcement for his replacement," the analysts added.

For more on this dating service, you can check out our Bumble dating app review.