Bumble Inc. is nearing a record low after giving a worse-than-expected revenue outlook for the quarter, just a day after announcing a new chief executive officer.
The dating app company said Tuesday that it expects revenue for the three months ending December to be between $272 million and $278 million, missing the average analyst estimate of $285.9 million. Its outlook for the year also came in below expectations, as did third-quarter guidance.
Bumble is facing stiff competition in the dating app market, where companies are vying against each other and social media platforms that are drawing users’ attention away. Bumble rival Match Group Inc., which owns Tinder and Hinge, hit a record low last week after it reported disappointing third-quarter results and guidance.
Bumble fell as much as 9% in premarket trading to $12.21, its lowest level ever, before erasing some losses and trading at $12.63 at 6:59 a.m. New York time. Shares had already fallen 36% this year.
Chief Executive Officer Whitney Wolfe Herd struck an optimistic tone despite the guidance misses. “By continuing to execute successfully on growth initiatives, we are strengthening our market leadership in online dating and making progress on the sizable opportunity beyond dating,” she said in a statement.
Wolfe Herd had announced Monday she would step down from the company she founded nearly 10 years ago, with Lidiane Jones, the CEO of Salesforce Inc.’s Slack, replacing her at the start of next year. Wolfe Herd will become executive chair.
The surprise announcement raised questions from analysts about near-term business operations and Bumble’s plans for new pricing tiers and products beyond dating.
