Bumble revenue surges with strong user growth amid Delta concerns
Author : Pankaj Singh | Published Date : 2021-08-13
With the COVID-19 pandemic isolating people at homes, online dating application Bumble Inc. expects higher revenue in the current quarter as paying subscribers increased, which helped the dating app owner overcome hurdles created by the virus’ Delta strain.
Last year, people alienated by lockdowns turned to virtual dating apps like Tinder and Bumble to redefine romance. Now, investors are once again analyzing how dating apps will fare as the Delta variant threatens the economy's recovery.
Bumble's stock soared 3% in the extended session after the Texas-based firm beat quarterly revenue expectations after total paying users increased by 20%, reaching 2.9 million. The firm said it is optimistic about the remaining of the year as it continues to see positive trends even in some of the worst afflicted markets.
On an earnings call, Bumble CEO Whitney Wolfe Herd mentioned that the widespread COVID-19 has increased loneliness, making people turn to them for connections. Even while the Delta version rages across India, Bumble has seen greater interaction and activity, she added.
The desire for platonic relationships is also increasing, motivating companies like Match Group's Tinder and Bumble to increase their investments in services that help people seek new friends.
According to credible sources, Bumble observed 2.05 million downloads in the second quarter in the United States, an increase of nearly 18% y-o-y. Its second-quarter revenue surged by 38%, reaching USD 186.2 million, compared to an estimated USD 178.7 million.
Bumble, which sets itself apart from competitors by requiring women to initiate contact, said it anticipates current-quarter sales between USD 195 million and USD 198 million, up from the projected USD 190.9 million.
Increased immunization rates and reopening have helped the dating app grow. Furthermore, spending on dating subscriptions and in-app purchases have spiked with a spur in in-person interaction.
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About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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