Bumble Inc., the dating app that gives women the first step, added new users in Q1 and reported an increase in revenue, but remained cautious about how quickly people would return to socializing. in person.
“It’s still unpredictable,” CFO Anu Subramanian said on a call with analysts after reporting the results. “There isn’t always a perfect correlation between when a market opens and when people actually start to actively engage in the dating ecosystem.” Shares fell about 1% late in the session, after closing at $ 47.24 on Wednesday in New York.
Sales were up 43% from the same period a year earlier to $ 171 million, beating analysts’ average estimate and the company’s own forecast made in March. The total number of paid users rose 30% to 2.8 million, with an average revenue per user of $ 19.99, an increase of more than $ 2 from last year, Bumble said Wednesday in a statement.
The Austin-based company is forecasting sales of $ 175 million to $ 178 million in the current quarter, a range above the analyst’s average forecast.
“Investors may have been looking for a larger increase in outlook given the strong performance in the quarter, especially with more reopenings scheduled for the second half of the year,” said Matthew Martino, analyst at Bloomberg Intelligence.
Bumble, which raised $ 2.15 billion as part of its public offering in February, was launched in 2014 by founder and CEO Whitney Wolfe Herd to change the dynamics of dating for women. He then added features, such as Bumble BFF and Bumble Biz, which respectively introduce new friends and business contacts. Bumble and rival Match Group Inc. have had to adapt and innovate during the pandemic, finding new ways to keep people engaged online and finding relationships through video and chat while restaurants, bars and other places social networks were locked.
Now that more people are being vaccinated and cities are opening up, Bumble will look to retain users both online and offline. He plans to open a wine bar in New York this summer, Wolfe Herd said in an interview with the Wall Street Journal on Tuesday.
Wolf Herd said that aside from dating, the sphere of friendship will be “the next horizon for social growth.”
The company touted strong gains in international markets and significant traction in its Bumble BFF product which saw engagement increase by 44% for women and 83% for men.
Bumble’s woman-centric approach has been popular with female users, especially as the company strives to prioritize security and reduce unsolicited messages through advanced reporting features and a anti-shame policy. The company recently hired Rachel Haas, Head of Safety and Women’s Inclusion at Uber Technologies Inc., to continue safety initiatives at Bumble.
The company’s eponymous app increased sales 61% in the first quarter as the pandemic began to abate in North America, its primary market. Badoo, which focuses on Europe, saw an 18% increase in turnover.
Bumble also posted first-quarter profit, bringing in $ 323.4 million, or $ 1.69 per share.
The stock has fallen about 40% from its February 16 high and is now about 10% above its offer price of $ 43.
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