Bumble Shares Collapse 28% Amid Q1 Revenue Decline Forecast

Bumble Inc. has forecasted a revenue decline of 7% to 10% for Q1 2025, attributing this to ongoing efforts to enhance its platform and streamline operations, which have resulted in a drop in paying users. The company's stock plummeted 16% following this announcement, adding to a significant 40% decrease over the past year, amid concerns about user growth and lack of full-year guidance. Analysts at Citi and JPMorgan have subsequently lowered their price targets for Bumble, highlighting persistent challenges and margin compression. Despite a strong fourth-quarter performance with revenue and EBITDA at the high end of projections, Bumble is experiencing negative net additions for the first time since Q4 2020. The company is focusing on its main Bumble App by discontinuing its Fruitz and Official apps, and plans to reinvigorate the brand under the leadership of founder Whitney Wolfe Herd, who returns as CEO in March 2025. Overall, investors remain cautious as Bumble navigates these strategic changes and market pressures.