Bumble Plunges 27% as Weak Q1 Forecast and Falling…
From Financial Modeling Prep: 2025-02-19 12:45:00
Bumble (NASDAQ:BMBL) shares plunged over 27% after issuing a disappointing Q1 revenue forecast and warning of shrinking margins and user base. Revenue is expected to fall short at $242-248 million, with adjusted EBITDA projected at $60-63 million, down 25% margin year-over-year due to increased product development investments.
Q4 revenue slightly beat expectations at $261.6 million, with adjusted EBITDA at $72.5 million, 27.7% of revenue. However, Bumble saw a loss of 60,000 paying users in Q4 and anticipates a steeper drop of 100,000-120,000 in Q1 2025, worse than expected.
Bumble faces pressure to reverse declining user growth, with weaker revenue guidance and rising costs. The company must address engagement trends to restore investor confidence in its growth prospects.
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