Latest news with #Bumble
Yahoo
an hour ago
- Business
- Yahoo
Is BMBL Stock a Buy as Bumble Lays Off 30% of Staff?
On June 25, shares of social networking and dating app company Bumble (BMBL) surged 25% following a bold announcement that it would reduce its global workforce by about 30%. Greenlit by the board on June 23, the decision is part of a larger restructuring effort focused on streamlining operations and prioritizing long-term growth. Bumble anticipates one-time charges ranging between $13 million and $18 million, primarily covering severance packages, benefits, and other related expenses. Despite these upfront costs, Bumble expects annual savings of up to $40 million. The funds will be redirected into advancing product innovation and upgrading its technological infrastructure. Dear Nvidia Stock Fans, Watch This Event Today Closely Can Broadcom Stock Hit $400 in 2025? A $2 Billion Reason to Sell Super Micro Computer Stock Now Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Alongside the workforce reduction, Bumble has raised its second-quarter 2025 outlook. The upgraded forecast signals growing confidence in its ability to stabilize financially, even as the dating app industry grapples with challenges like user fatigue and a difficult macro environment. Investors will be watching closely to see whether BMBL stock's upward momentum can continue on the back of this more optimistic outlook. Based in Austin, Texas, Bumble operates two of the world's leading dating platforms: Bumble and Badoo. These apps boast millions of active users and rank among the highest-grossing in the sector. With a market capitalization of $673 million, Bumble positions itself as a platform committed to fostering equitable and healthy relationships. Despite the company's strong brand presence, shares have faced significant pressure over the past 52 weeks, plunging nearly 36%. However, BMBL stock has seen a notable turnaround in recent months, with shares climbing 40% over the past three months and rocketing 24% in just the last five trading days. BMBL stock trades at 6 times forward adjusted earnings and 0.50 times sales, well below industry averages. The steep discount hints at a rare value play, especially if the stock's turnaround gains traction. For investors seeking upside at a bargain, this pricing could be too attractive to pass up. Bumble's fiscal 2025 first-quarter results, released on May 7, painted a mixed picture but contained some silver linings. Revenue slid 7.7% year-over-year (YOY) to $247.1 million. However, the figure still managed to beat analyst expectations, which hovered around $246.5 million. Revenue from the flagship Bumble app fell 6.5% YOY to $201.8 million, while Badoo and other sources saw a sharper decline of 13% to $45.3 million. The firm's user base remained steady with about 4 million paying customers, but average revenue per paying user dipped to $20.24 from $21.84, signaling some pressure on monetization. Adjusted EBITDA dropped 13% YOY to $64.4 million during the quarter. Net earnings also took a 41.5% hit, falling to $19.8 million. EPS declined 31.6% YOY to $0.13, missing the consensus estimate of $0.16 and reflecting ongoing challenges in profitability. The balance sheet showed $202.2 million in cash and cash equivalents against a sizable debt load of $616.1 million as of March 31. Despite these hurdles, the company's outlook appears to be improving. For the second quarter, Bumble forecasts a range between $244 million and $249 million. This marks a notable increase from its previous estimate of $235 million to $243 million. Adjusted EBITDA guidance was also lifted alongside the job cuts, from an earlier range of $79 million to $84 million to a new target of $88 million to $93 million. Analysts have raised expectations for the second quarter as well, forecasting a 36.4% YOY increase in EPS to $0.30. Fiscal 2025 looks even more promising, with the bottom line projected to surge 118% to $0.86 per share. The growth trend is expected to continue into fiscal 2026, with EPS anticipated to rise by 10.5% to $0.95. These estimates suggest that Bumble's cost-cutting and reinvestment strategies may soon translate into stronger financial results. Currently, BMBL stock holds an overall analyst rating of 'Hold.' Among the 16 experts tracking the stock, only one issues a 'Strong Buy' recommendation and another leans toward 'Moderate Buy.' The majority, 12 analysts, maintain a 'Hold' stance while one analyst suggests a 'Moderate Sell' and another a 'Strong Sell" rating. The mixed sentiment reflects ongoing uncertainty about Bumble's ability to fully recover in a competitive market. Still, the Street-high price target sits at $9 per share, indicating potential upside of 38% from current levels. Should Bumble's restructuring and revised guidance translate into sustained growth, Bumble stock could capture investor interest and climb higher. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
17 hours ago
- Business
- Yahoo
Bumble announces major layoffs affecting 30% of employees as company restructures
Bumble Inc. disclosed Wednesday that it will cut its workforce by 30%. The move comes as the dating app company seeks to realign its operating structure to "optimize execution on its strategic priorities," Bumble said in a Securities and Exchange Commission (SEC) filing. Approximately 240 people will lose their jobs in the planned layoffs. CEO and founder Whitney Wolfe Herd said in a message to staff that the company needed to "take decisive action to restructure to build a company that's resilient, intentional, and ready for the next decade." Bumble must become a "faster-more decisive, and more agile organization" while "prioritizing core product innovation and addressing the big opportunities in how technology shapes human connection" and "returning to a member-first approach and investing in member health," she said. Bumble projected it will have $13-18 million worth of charges from employee severance, benefits and other related charges in connection to the layoffs largely. Those will largely happen in the third and fourth quarters of this year. Read On The Fox Business App Laid-off employees will receive "structured" severance and "transitional support" from the company, according to Herd. Microsoft Plans 'Substantial' Job Cuts Across Xbox Division "These decisions were not made lightly, and we are deeply grateful for the contributions of every employee impacted. Our focus now is on moving forward in a way that strengthens our core business, continues to serve our members effectively, and positions us for future growth," a Bumble spokesperson told FOX Business. The job cuts will lead to annual savings of up to $40 million. Most of that will go towards "strategic initiatives including product and technology development," the company said in the SEC filing. Bumble also said that it now expects the dating app company to notch revenue between $244 million and $249 million for the second quarter. Its EBITDA for that three-month period, meanwhile, is forecasted to come in between $88 million and $93 million. Click Here To Read More On Fox Business In the first quarter, it saw its revenue drop year-over-year to $247.1 million. Bumble's stable of apps includes its namesake app, Bumble for Friends, Badoo and Geneva. In February, the company said it was shutting down two apps, Fruitz and Official, something it said would be completed in the first six months of this year. The company had a total of four million paying users at the end of the first article source: Bumble announces major layoffs affecting 30% of employees as company restructures Sign in to access your portfolio
Wall Street Journal
19 hours ago
- Business
- Wall Street Journal
The Score: Bumble, Tesla, Shell and More Stocks That Defined the Week
The Score is a weekly review of the biggest stock moves and the news that drove them. Bumble BMBL -0.92%decrease; red down pointing triangle is trying to get its buzz back after years of sluggish growth.
Yahoo
19 hours ago
- Business
- Yahoo
Bumble reduces workforce in company-wide restructuring effort. Does it have a future?
The dating app company Bumble, which launched in 2014, had separated itself from competitors by creating a platform where women initiate the conversation by sending the first message. This strays from competitors who allow either person to message first. Additionally, the app has Bumble BFF mode, where users can meet new friends, and Bumble Biz mode, where professionals can connect and share knowledge in an easygoing and more comfortable setting, according to Bumble. But in a securities filing report this week, Bumble announced it will be laying off 30% of its global workforce. Bumble was a privately owned entity until 2021, when it went public. Since then, it has struggled in the market, with its stock down more than 35% over the last year as of Wednesday, and nearly 92% since 2021, per The Associated Press. The report released by Bumble on Wednesday disclosed that the board had approved the proposed cuts as the company 'realigns its operating structure to optimize execution on its strategic priorities.' The report did not immediately disclose when the layoffs would be implemented, but the securities filing implied that the process would extend to the end of the year, with severance for impacted employees numbering anywhere between $13 million to $18 million. In a note sent to employees on Wednesday, Bumble CEO and founder Whitney Wolfe Herd wrote, 'This is a hard note to write — and I know it's a hard one to read. But I've always promised to lead with honesty, clarity, and care, even when it's difficult.' Wolfe Herd continued, 'Bumble, like the online dating industry itself, is at an inflection point. In recent months, we've been rebuilding — returning to what makes us trusted, unique, and deeply human. But intentional rebuilding requires hard decisions. Today, we are marking one of the most difficult: we are reducing the size of our team. This decision is not a reflection of any individual but rather where we are going as a company and what we are building for.' Wolfe Herd had just stepped back into her role as CEO in March, after leaving the company in January 2024, per AP. With these layoffs, the dating app developer will save an estimated $40 million annually, according to CNBC. CNN noted that Bumble's latest employee changes are 'the latest warning sign that younger users are growing frustrated and abandoning online dating, forcing companies like Bumble to search for new ways to innovate, including putting a stronger emphasis on using artificial intelligence to find matches.' Rival developer Match Group, responsible for dating apps Hinge and Tinder, is also struggling in the market. As of May, the company reduced its workforce by 13%, which affected 300 employees, per Fortune. Tinder is releasing new features to keep users engaged, such as the app's new 'Double Date' feature, which allows friends to have joint profiles, enabling users to match in pairs and plan double dates for their first in-person meeting, per Business Insider.
Fast Company
a day ago
- Business
- Fast Company
Bumble is stumbling. Tinder is flagging. But this go-to gay dating app is thriving
Dating app Bumble continues to lose its footing. After subpar earnings, sluggish user growth, and internal stagnation, the company has laid off 30% of its staff. Meanwhile, its dating app competitor Grindr is soaring. Among dating apps, Match Group's properties— mostly Hinge, sometimes Tinder—lead the market. The duo's ubiquity frame apps like Bumble and Grindr as boutique alternatives, designed for their innovative features or specialty user bases. That's a difficult market to occupy, especially as dating app fatigue sets in and Gen Z seems to push for more in-person (and sexless) encounters. Those factors are just part of the reason why Bumble and its competitors are falling behind. But LGBTQ+ hookup app Grindr is flourishing—posting solid growth in both user acquisition and revenue. In May, Grindr CEO George Arison spoke with Fast Company about his efforts to build a broader offering on the foundation of its core location-based grid of users—including some popular new features and a foray into telemedicine. He isn't convinced that generational patterns entirely explain the struggles of dating apps. 'This whole 'Gen Z-avoiding-apps' thing makes no logical sense. Gen Z loves TikTok and loves Reels and thinks you can read something online and you're an expert in it, but they're not gonna do dating online?,' he says. 'What I do think and what makes logical sense, is that if you don't build a product that Gen Zers want, they're not going to use it. That's where I think some of our peers have fallen flat.' His vision is still in progress, but here's how the company's constant efforts to test and scale new ideas could serve as a guide to its competitors. Comparing Bumble and Grindr Bumble and Grindr both went public in the early 2020s, when the dating app market was still hot thanks to the pandemic's digital boom. Since their IPOs, both Bumble and Grindr have hit rough waters—though Grindr managed to right itself while Bumble continues to, well, bumble. Bumble's stock opened at $43 per share—a height it hasn't reached since late 2021. In 2025, Bumble's share price was hovering around $5 in early June, jumping above $6 only at the news of layoffs earlier this week. Meanwhile, Grindr—which debuted at $16.90 in 2022, initially dropped to $5, but has been above $15 since November 2024 and exceeded $20 per share since mid-April. Revenue figures have told a similar story. Founder Whitney Wolfe Herd returned to Bumble in March on the eve of some sour news: Bumble's Q1 earnings showed an 8% decrease in revenue year-over-year. For the same quarter, Grindr's revenue grew 25% over the prior year. Arison told Fast Company he sees the company's performance as a reflection of the contributions that the LGBTQ+ community—he is gay himself—can make to the business world. 'Part of our mission has to be we do super well as a business and we force everybody to change,' he says. Neither app releases consistent and specific user counts. Grindr appears to be growing its user base as Bumble's gains are slow. In its Q1 earnings, Grindr reported 'more than 14.5 million' monthly active users, up from 'more than 13.5 million' the year prior. Bumble's earnings are split by paying users, a focus for former CEO Lidiane Jones. While the company grew its paying app users by 11% in 2024, it has since shed 100,000 of those subscribers in 2025. What should a dating app look like? Under Arison's leadership, Grindr has turned into an innovation powerhouse. In his May interview, Arison emphasized the creation of Albums—bundles of photos sent via chats and not directly displayed on a profile—which debuted in 2022. In 2024, Grindr users sent over two billion albums. He also pointed toward the app's new Right Now feature, which lets users search specifically for more immediate action. In D.C. and Sydney, two of the feature's trial markets, Arison said that '25 to 35% of our weekly active users were regularly going into the Right Now experience at least once a week.' Grindr's new features are available for all users, though paid subscribes receive additional uses. For example, free Grindr users get to post to the Right Now feed three times a week. Down the line, the company plans to make sessions available for purchase. That's part of Arison's strategy: Opening new features with limitations as a bridge to paid customer conversion. 'I don't want Grindr to end up like some of our competitors, who hollowed out their products focusing only on monetization and building nothing,' Arison told Fast Company. 'We are doing product-led processes—it's not just monetize, monetize, monetize. We're saying: Build new things, and those things will lead to revenue.' In contrast, Bumble has moved slowly with their feature rollouts. The 'Opening Moves' feature debuted in 2024, allowing users to list prompts for new matches to respond to. The feature undercut Bumble's initial mission that women should message first. Since then, they've also instituted ID verification and date-sharing safety features. Many of the app's most compelling features—like backtracking left swipes, Travel Mode, and Incognito Mode—are only available to paid users. With dating app fatigue on the rise, both Bumble and Grindr have also expanded into alternate markets. Both have emphasized the role of friendship and platonic encounters on their apps, with Arison promoting Grindr's ongoing effort to become the 'global gayborhood in your pocket,' noting 'Our younger, 18-plus cohort wants to be in an environment where there are older people as well. Friendships between younger and older people are much more common in our community.' Bumble launched its friend-focused Bumble B.F.F. in 2016, and broke it out into a stand-alone app, Bumble for Friends, in 2023. While Bumble for Friends doesn't release stand-alone user numbers, its million-plus Google Play downloads is dwarfed by Bumble's more than 50 million downloads. Grindr's 'gayborhood' model also flows easily with the original app; users have been employing Grindr for non-dating activities since its advent. By spinning their Friends function out into a separate app, Bumble must seek out an entirely separate user base. In this area, Grindr is making a similarly big bet on how it can show up in different ways for its users. The company recently launched Woodwork, a telemedicine company selling erectile dysfunction pills, in Illinois and Pennsylvania. Arison also predicted that Grindr would expand into 'haircare, skincare, and other things of that nature.' 'When I started talking to shareholders, part of the conversation was: What do we want Grindr to be? Just a dating app or something more?' Arison told Fast Company. 'Their view was very strong: We want to be a lot more.'
