Bumble forecasted higher-than-expected revenue for the quarter on Wednesday, as the surge in paying users during the pandemic helped dating app owners get rid of the challenges posed by the COVID-19 Delta variant.
Bumble shares rose 3% in after-hours trading as the Texas-based company also exceeded quarterly revenue expectations after the total number of paying users increased by 20% to 2.9 million.
Apps like Bumble and Tinder grew last year, as people blocked in isolation turned to virtual dating to reshape romance. Now, as the Delta variant threatens the nascent recovery of the economy, investors are once again weighing the performance of dating apps.
Bumble stated that it is confident in its performance for the rest of the year as it continues to see positive trends across platforms, “even in some of the most affected markets.”
Bumble CEO Whitney Wolfe Herd said on the earnings call: “When COVID is accelerating and loneliness rises, people will look to us for contact.”
Herd added that even though the Delta variant is popular across the country, Bumble’s participation and activities in India have increased.
Searches for platonic relationships are also increasing, prompting companies such as Match Group’s Tinder and Bumble to double up on offering services that help users find and keep friends.
According to data from research firm Apptopia, Bumble downloaded approximately 2.05 million times in the United States in the second quarter, a year-on-year increase of nearly 18%.
Its revenue in the second quarter increased by 38% to 186.2 million US dollars (approximately 13.3 billion rupees), while Refinitiv IBES’s estimate was 178.7 million US dollars (approximately 13.3 billion rupees).
Bumble differentiates itself from its competitors by asking women to take the first step. The company stated that it expects revenue for the quarter to be between US$195 million (approximately 14.5 billion rupees) and US$198 million (approximately 14.4 billion rupees). It was higher than the expected US$190.9 million (approximately Rs 1,420 crore).
© Thomson Reuters 2021