(Reuters) -Bumble Inc cut its full-year revenue forecast on Wednesday, taking a hit from the war in Ukraine while also grappling with stiff competition from rivals such as Match Group Inc in the online dating market.
Shares of Austin, Texas-based Bumble fell nearly 13% in trading after the bell, after its current-quarter forecast also remained below Wall Street estimates.
While Bumble has experienced a surge in popularity, its other dating app, Badoo, which is mostly used in Western Europe by the urban middle class segment, remains under pressure from ongoing economic uncertainties.
Bumble in March discontinued its operations in Russia following the country’s invasion of Ukraine, including the removal of all of its apps from the Apple App Store and the Google Play Store in Russia and Belarus.
The impact from the war is expected to dent full-year revenue by $20 million, primarily in Badoo and other apps, at a time when Bumble is already playing catch-up with Tinder owner Match in the European market.
Match also posted a disappointing forecast earlier this month, hurt by a stronger dollar, a drop in paying subscribers for some apps and a slow recovery in certain markets.
Bumble now expects revenue between $920 million and $930 million for 2022, lower than its prior estimate of $934 million to $944 million. Analysts on average are expecting $934.1 million, according to Refinitiv data.
While the Bumble app’s paying users surged 31% to 1.9 million in the quarter ended June 30, Badoo and other apps saw a cumulative slide of about 25% to 1.1 million.
For the quarter, Bumble’s revenue rose 18.4% to $220.5 million, edging past analysts’ average estimate of $219.4 million.
Net loss attributable to Bumble shareholders narrowed to $4.4 million, or 3 cents per share, from $7.1 million, or 6 cents per share a year earlier.
(Reporting by Tiyashi Datta and Deborah Sophia in Bengaluru; Editing by Krishna Chandra Eluri)
Source: One America News Network
