Bumble recorded its first consecutive decline in user growth since the dating app owner went public in February, when new pandemic restrictions dampened demand in some markets, causing the stock to plummet nearly 20 percent on Friday.
In the third quarter, the total number of paying users fell 2 percent from the previous quarter to 2.9 million, as the global surge of the Delta variant led to renewed lockdowns, pushing consumer spending on dating app subscriptions and in app purchases were restricted.
Bumble’s other dating app, Badoo, which is mainly used by the urban middle-class segment, also saw user growth impacted by the economic pressures caused by the health crisis in some markets.
“Badoo operates in many markets where the pandemic remains a major challenge… with recovery rates differing by region,” Chief Executive Officer Whitney Wolfe Herd said in a post-profit appeal.
“While many key markets such as Russia and Brazil have shown strong growth in both paying users and user revenue, others such as France and Italy have lagged.”
Bumble shares fell 19.16 percent to $38.60 in afternoon trading on Friday. The company’s shares have lost about 32 percent since its market debut in February.
Despite the slowdown, Texas-based Bumble raised its full-year revenue forecast and said it remained well-positioned for the quarter ahead as it continues to expand internationally. However, Rival Match Group predicted fourth quarter revenue would be below estimates as COVID-19 hit the Tinder owner’s operations in Asia.
Bumble expects revenue of between $208 million and $211 million for the current quarter, above analyst estimates of $206.0 million, according to data from Refinitiv IBES.
Total revenue was $200.5 million in the third quarter, compared to estimates of $198.8 million.