Bumble has cancelled two acquired apps, Fruitz and official apps. The move was shared during the company's fourth quarter revenue call.
As CEO Lidiane Jones explained during the call, the choice to cancel French dating app Fruitz cancels Fruitz, an app designed to help couples strengthen their relationship This will allow the company to focus on its core business, Bumble and Badoo.
However, the move appears to contradict the company's previous statements made in the first quarter of 2024. At the time, he expressed his strong commitment to pursuing acquisitions as a way to promote growth.
This move comes as Bumble and others in the dating app industry are tackling economic challenges and spurring a reassessment of business strategies.
“We made a strategic decision to cancel the fruit and the official,” said a flock of Bumble founder Whitney Wolf, who will return to lead the company in March. “We expect the closure of these apps to generate a headwind of revenue of approximately $12 million that year.”
Wolfe's flock returns to her role at a critical time as many users become disillusioned with dating apps. During the revenue call, she said that she must reset Bumble to focus on what really works, prioritize safety measures, improve the underlying technology and introduce new features. I've said that. Safety could be one of the most important things, especially given the growing scrutiny surrounding competitors such as Match reportedly overlooking some safety measures. There is.
Bumble said it plans to launch several new features, including a new “discovery” tab similar to Tinder. It also shows how users can share their profiles directly.
“When I started Bumble, the majority of our success was to remove rejection and fulfill confidence, but we're at a new dawn. This starts with every touchpoint of the product We need to make sure that it's been. So this is exactly what we're focusing on, bringing confidence, curiosity and joy back to this experience,” Wolf Heard said.
The company reported that overall revenue fell 4.4% to $261.6 million, down to $273.6 million. This slump was consistent with the company's previous financial guidance, but still reflects a trend in concern. Revenue from the Bumble app fell 3.8% to $222.4 million, down 3.8% from $220 million in the last quarter, not reaching the guidance range of $207 million to $211 million. That was it.
Additionally, at the time of this writing, Bumble stocks fell more than 27% after reporting a disappointing first quarter earnings forecast. The company was forecast to earn between $242 million and $248 million. This represents a 6% to 8% decline in Bumble App revenue, including between $180 million and $222 million.