Bumblebee drops after weak fourth-quarter revenue forecast on forex hit

“Some of our user segments are facing greater pressure on disposable income, and these segments are renewing their subscriptions at a marginally lower rate,” Chief Executive Officer Whitney Wolfe Hurd said on an earnings call.

A strong dollar and the Ukraine war have also taken a toll on the company’s business, with third-quarter revenue falling short of both its own and Wall Street’s expectations. Adjusted for both foreign exchange and the Ukraine crisis, revenue growth would have been 10% higher, Hurd said.

In the current-quarter, Bumble expects a $16 million impact on foreign exchange and a $5 million impact, primarily due to the ongoing war on its Badoo app and other revenues. A more than 15% increase in the dollar this year has impacted sales. Companies in various sectors, while the highest price pressures in decades, have prompted consumers to curb non-essential spending.

Bumble is also facing competition from larger rival Match Group Inc., which last week topped revenue estimates for its flagship app Tinder due to a surge in paying users. Although the company saw a rise in popularity, its sister app Badoo, which is used mostly in Western Europe, remains under pressure. Earlier in March, Bumble said it was ceasing operations in Russia, including removing all of its apps from the Apple App Store and Google Play Store in Russia and Belarus. Bumble now expects current quarterly revenue of between $232 million and $237 million. Wall Street is estimated at $254.5 million according to Refinitiv data.

According to Refinitiv data, the company reported third-quarter profit of 14 cents per share, compared to analysts’ estimates of 1 cent per share. Bumble, which debuted on the market in February 2021, said its total paying users for the quarter increased to 3.3. million from 2.9 million last year.

This story has been published without modification in text from a wire agency feed.