Bumble's AI Strategy Fails to Stem Decline in Paying Users, Shares Plummet

Bumble shares drop on subscriber decline, AI strategy concerns

Aug 7 (Reuters) - Shares of dating app Bumble (BMBL.O), opens new tab fell over 6% in premarket trading on Thursday, as investors reacted to a drop in subscribers and concerns about its ability to boost spending amid doubts over the pace of its AI innovation. Faced with falling user engagement driven by persistent inflation and stagnant innovation, Bumble and its larger rival Match (MTCH.O), opens new tab have been revamping their apps to win back subscribers. "While we're not overly optimistic on the industry, sentiment in the space is already anemic," analysts at RBC Capital Markets said. "..It may not yet be the darkest before the dawn," they added. The dating app's total paying users fell by 8.7% to 3.8 million in the second quarter. The results come after Match Group, parent to Tinder and Hinge, exceeded quarterly revenue expectations on Hinge's strength and new leadership focus, although it logged a 5% decline in paying users, reflecting sector-wide pressure. In a bid to tackle persistent "dating fatigue", Bumble has turned to AI-fueled innovation, which is expected to provide a much-needed boost for the dating app operator as it struggles with fading investor confidence in recent quarters. Shares of the Austin, Texas-based company have lost about 6.2% so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group. Reporting by Joel Jose in Bengaluru; Editing by Sonia Cheema Our Standards: The Thomson Reuters Trust Principles., opens new tab

Bumble plunges as AI revamp strategy fails to woo investors amid falling paying users

Aug 7 (Reuters) - Bumble (BMBL.O), opens new tab shares slumped 17% on Thursday after another quarter of declines in paying users raised questions about the dating app operator's turnaround efforts, including AI initiatives, and long-term growth prospects. The company reported after market hours on Wednesday that total paying users dropped 8.7% to 3.8 million in the second quarter, despite efforts to improve the quality of its user base and foster more meaningful connections by linking users with similar engagement and intent. Bumble had 4 million paying users in the first quarter and 4.2 million in the fourth quarter of the previous year, by comparison. Meanwhile, Bumble's direct rival Hinge, owned by Match Group (MTCH.O), opens new tab, has continued to outperform due to its stronger international market presence and competitive AI suite that offers more personalized matches. Hinge's focus on authentic profiles and innovative prompts has differentiated it from its competitors, helping it achieve higher user engagement and retention rates, analysts have noted. Meanwhile, Bumble still remains in the early stages of its strategy to improve user experience. The company has rolled out new AI-powered features to expand trust and safety tools, but analysts have said the strategy will weigh on user and payer growth in the near term, especially as stricter verification measures roll out. "It remains very early days here and visibility to users and payers is lower in our view," analysts at Citi said, adding that higher marketing, along with research and development expenses, may pressure margins into 2026. The Austin, Texas-based company's shares have fallen more than 6% so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group. Reporting by Kritika Lamba and Joel Jose in Bengaluru; Editing by Sonia Cheema and Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

Bumble's paying user drop sparks concerns over pace of AI-driven revamp

Aug 6 (Reuters) - Bumble's (BMBL.O), opens new tab paying users fell in the second quarter, the dating app operator said on Wednesday, clouding hopes of a quick turnaround and sending its shares slumping 8% in extended trading. The company, which operates an eponymous app, has turned to artificial intelligence to combat the "dating fatigue" that has plagued the industry. Analysts, however, say Bumble has trailed bigger rival Tinder-parent Match Group (MTCH.O), opens new tab as many of the company's efforts remain in early testing phases. The dating app's total paying users decreased by 8.7% to 3.8 million in the second quarter. "The primary concern at this stage remains the headwinds in paying user growth, which Bumble needs to address to re-engage its core audience," said Chandler Willison, research analyst at M Science. In the three-month period to June, the company posted a net loss of $367.0 million, including $404.9 million of non-cash impairment charges, compared to a net profit of $37.7 million, a year earlier. The company, which named a new chief financial officer, did not specify the reasons behind its one-time cost. In its bet to provide real connections, Bumble has introduced a new coaching hub powered by both human expertise and artificial intelligence. The company said on Wednesday it would introduce an all-new Bumble BFF application this month to woo Gen Z customers and will also have new community-focused events to help users build offline friendships. Bumble posted second-quarter revenue of $248.2 million, compared with analysts' average estimate of $245.1 million, according to data compiled by LSEG. The company said Kevin Cook, who was recently financial head at data management platform Cloudera, would succeed interim CFO Ronald Fior, effective August 12. Bumble forecast third-quarter revenue between $240 million and $248 million, largely above analysts' estimates of $241.4 million, according to data compiled by LSEG. Reporting by Kritika Lamba in Bengaluru; Editing by Sriraj Kalluvila and Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Bumble shares plunge as paying base shrinks, AI revamp in question

Aug 7 (Reuters) - Bumble (BMBL.O), opens new tab shares slumped 23% in early trading on Thursday after another quarter of declines in paying users raised questions about the dating app operator's turnaround efforts, including AI initiatives, and long-term growth prospects. If losses hold, Bumble is poised to shed about $179.73 million in market value. The company reported after market hours on Wednesday that total paying users dropped 8.7% to 3.8 million in the second quarter, despite efforts to improve the quality of its user base and foster more meaningful connections by linking users with similar engagement and intent. Bumble had 4 million paying users in the first quarter and 4.2 million in the fourth quarter of the previous year, by comparison. Meanwhile, Bumble's direct rival Hinge, owned by Match Group (MTCH.O), opens new tab, has continued to outperform due to its stronger international market presence and competitive AI suite that offers more personalized matches. Hinge's focus on authentic profiles and innovative prompts has differentiated it from its competitors, helping it achieve higher user engagement and retention rates, analysts have noted. Meanwhile, Bumble still remains in the early stages of its strategy to improve user experience. The company has rolled out new AI-powered features to expand trust and safety tools, but analysts have said the strategy will weigh on user and payer growth in the near term, especially as stricter verification measures roll out. "It remains very early days here and visibility to users and payers is lower in our view," analysts at CITI said, adding that higher marketing, along with research and development expenses, may pressure margins into 2026. The Austin, Texas-based company's shares have fallen more than 6% so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group. Reporting by Kritika Lamba and Joel Jose in Bengaluru; Editing by Sonia Cheema and Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

Bumble Is Losing Paying Users. Here's Why Its Competitors Are Winning

Analysts note that Bumble is in the early stages of its turnaround strategy. Bumble shares slumped 23 percent in early trading on Thursday after another quarter of declines in paying users raised questions about the dating app operator's turnaround efforts, including AI initiatives, and long-term growth prospects. If losses hold, Bumble is poised to shed about $179.73 million in market value. The company reported after market hours on Wednesday that total paying users dropped 8.7 percent to 3.8 million in the second quarter, despite efforts to improve the quality of its user base and foster more meaningful connections by linking users with similar engagement and intent. Bumble had 4 million paying users in the first quarter and 4.2 million in the fourth quarter of the previous year, by comparison. Meanwhile, Bumble's direct rival Hinge, owned by Match Group, has continued to outperform due to its stronger international market presence and competitive AI suite that offers more personalized matches. Hinge's focus on authentic profiles and innovative prompts has differentiated it from its competitors, helping it achieve higher user engagement and retention rates, analysts have noted. Meanwhile, Bumble still remains in the early stages of its strategy to improve user experience. The company has rolled out new AI-powered features to expand trust and safety tools, but analysts have said the strategy will weigh on user and payer growth in the near term, especially as stricter verification measures roll out. "It remains very early days here and visibility to users and payers is lower in our view," analysts at CITI said, adding that higher marketing, along with research and development expenses, may pressure margins into 2026. The Austin, Texas-based company's shares have fallen more than 6 percent so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group. (Reporting by Kritika Lamba and Joel Jose in Bengaluru; Editing by Sonia Cheema and Vijay Kishore) The final deadline for the 2025 Inc. Power Partner Awards is this Friday, August 8, at 11:59 p.m. PT. Apply now.

Bumble shares fall over 6% on subscriber decline, AI strategy concerns

Shares of dating app Bumble fell over 6% in premarket trading on Thursday, as investors reacted to a drop in subscribers and concerns about its ability to boost spending amid doubts over the pace of its AI innovation. Faced with falling user engagement driven by persistent inflation and stagnant innovation, Bumble and its larger rival Match have been revamping their apps to win back subscribers. "While we're not overly optimistic on the industry, sentiment in the space is already anemic," analysts at RBC Capital Markets said."..It may not yet be the darkest before the dawn," they added.The dating app's total paying users fell by 8.7% to 3.8 million in the second quarter.The results come after Match Group, parent to Tinder and Hinge, exceeded quarterly revenue expectations on Hinge's strength and new leadership focus, although it logged a 5% decline in paying users, reflecting sector-wide pressure.In a bid to tackle persistent "dating fatigue", Bumble has turned to AI-fueled innovation, which is expected to provide a much-needed boost for the dating app operator as it struggles with fading investor confidence in recent quarters.Shares of the Austin, Texas-based company have lost about 6.2% so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group.

Bumble shares drop on subscriber decline, AI strategy concerns

Shares of dating app Bumble fell over six per cent in premarket trading on Thursday, as investors reacted to a drop in subscribers and concerns about its ability to boost spending amid doubts over the pace of its AI innovation. Faced with falling user engagement driven by persistent inflation and stagnant innovation, Bumble and its larger rival Match have been revamping their apps to win back subscribers. "While we're not overly optimistic on the industry, sentiment in the space is already anemic," analysts at RBC Capital Markets said. "It may not yet be the darkest before the dawn," they added. The dating app's total paying users fell by 8.7 per cent to 3.8 million in the second quarter. The results come after Match Group, parent to Tinder and Hinge, exceeded quarterly revenue expectations on Hinge's strength and new leadership focus, although it logged a five per cent decline in paying users, reflecting sector-wide pressure. In a bid to tackle persistent "dating fatigue," Bumble has turned to AI-fueled innovation, which is expected to provide a much-needed boost for the dating app operator as it struggles with fading investor confidence in recent quarters. Shares of the Austin, Texas-based company have lost about 6.2 per cent so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group.

Bumble shares drop on subscriber decline, AI strategy concerns

(Reuters) -Shares of dating app Bumble fell over 6% in premarket trading on Thursday, as investors reacted to a drop in subscribers and concerns about its ability to boost spending amid doubts over the pace of its AI innovation. Faced with falling user engagement driven by persistent inflation and stagnant innovation, Bumble and its larger rival Match have been revamping their apps to win back subscribers. "While we're not overly optimistic on the industry, sentiment in the space is already anemic," analysts at RBC Capital Markets said."..It may not yet be the darkest before the dawn," they added.The dating app's total paying users fell by 8.7% to 3.8 million in the second quarter.The results come after Match Group, parent to Tinder and Hinge, exceeded quarterly revenue expectations on Hinge's strength and new leadership focus, although it logged a 5% decline in paying users, reflecting sector-wide pressure.In a bid to tackle persistent "dating fatigue", Bumble has turned to AI-fueled innovation, which is expected to provide a much-needed boost for the dating app operator as it struggles with fading investor confidence in recent quarters.Shares of the Austin, Texas-based company have lost about 6.2% so far this year. The stock trades at 7.96 times its projected earnings for the next 12 months, compared with 14.64 times for Match Group. (Reporting by Joel Jose in Bengaluru; Editing by Sonia Cheema)