Bumble today announced that founder Whitney Wolfe Herd will return as CEO after retiring in 2023.
Bumble said Wolfe Herd will replace current CEO Lydiaan Jones, who is stepping down for “personal reasons.” Jones, the former CEO of Slack, will remain in his role at Bumble until the transition takes effect in mid-March.
It's not uncommon for a founder to return as CEO. Prominent examples include Jack Dorsey's return to Twitter and Steve Jobs' return to Apple. The reasons for this return vary, but founders are often a natural choice because they remain closely connected to the company's mission and culture.
Wolfe Herd's return comes at a critical time for Bumble, as the company's growth has slowed. The company's Q3 2024 results revealed that its total revenue decreased to $274 million, even as the number of paid users increased to 4.3 million. Additionally, average revenue per paid user (ARPPU) decreased from $23.42 to $21.17. Wolfe Herd's return may inspire investor confidence.
Bumble is preparing to release its fourth-quarter earnings next month, but the company said in conjunction with the CEO news that it expects app revenue to be “above the midpoint of our previously provided guidance range.” Ta. We also report adjusted EBITDA within the disclosed outlook.
In November, the company expected fourth-quarter revenue of $256 million to $262 million and adjusted EBITDA of $70 million to $73 million.