Bumble surpasses revenue estimates, expects strong international growth

Online dating platform Bumble Inc. has reportedly surpassed estimations in its fourth-quarter earnings and now expects sturdy growth in 2022, further booming the company's shares by over 20% during extended trading.

The dating company was confirmed to have halted its operations in Russia and exited the country amid the Ukraine invasion. It is also planning to remove its apps from both Google Play Store and Apple Store in Moscow and Belarus.

However, Bumble expects to incur a revenue loss of around USD 20 million from Russia, Belarus, and Ukraine, which accounted for about 2.8% of its annual sales in 2021.

Despite this, Bumble expects its 2022 sales to be between USD 934 million and USD 944 million. The company will also double down its efforts on the international market.

In this context, Bumble's Chief Financial Officer, Anu Subramanian, stated that they expect the company to have another strong year in 2022, with revenue growing 34% to 36% year-on-year, primarily driven by continued product innovation and international expansion.

It is worth mentioning that the COVID-19 has boosted the usage of dating apps, given the fact that people tied to their homes resorted to online platforms to meet with new ones. Interestingly, even after the economy recovered, the surge in users didn’t diminish.

In the fourth quarter of 2021, Bumble earned 13 cents per share, excluding special items. According to sources, the average expectancy from the company was to break even on a per-share basis.

Bumble Inc., which also recently acquired social network Badoo, had also bought a French company Fruitz to strengthen its position in Europe and gain a competitive edge on Tinder's parent company Match Group Inc.

The online dating company also specializes in non-dating services like Bumble BFF and Bumble Bizz, which connect users to new friends and business contacts. These services were in existence even before the pandemic upended in-person meetings.

Source Credits –

https://ustimetoday.com/bumble-beats-earnings-estimates-bets-on-international-growth/