FILE PHOTO: The Bumble Inc. (BMBL) app is shown on an Apple iPhone in this photo illustration as the dating app operator made its debut IPO on the Nasdaq stock exchange February 11, 2021. REUTERS/Mike Blake/Illustration
March 8, 2022
(Reuters) -Bumble Inc on Tuesday beat fourth-quarter profit estimates and said it expected strong growth at its Bumble app in 2022, sending the dating company’s shares up over 20% in extended trading.
The company also said it is discontinuing operations in Russia, joining a growing number of firms that are exiting the country following its invasion of Ukraine. Bumble is also removing all of its apps from the Apple App Store and Google Play Store in Russia and Belarus.
The Austin, Texas-based company said combined revenue from Russia, Ukraine, and Belarus was about 2.8% of total annual revenue in 2021. It expects to lose about $20 million in revenue from the region this year.
For 2022, Bumble forecast full-year 2022 revenue between $934 million and $944 million, the mid-point of which is nearly in line with analysts’ estimates, according to IBES data from Refinitiv.
The company is also increasingly focusing on its expansion in the international market.
“We expect Bumble App to have another strong year in 2022 and grow revenue 34% to 36% year-over-year, driven by continued international expansion and product innovation,” Chief Financial Officer Anu Subramanian said in a statement.
The COVID-19 crisis had boosted the use of dating apps as people confined to their homes used the virtual platforms to meet new people and develop both personal and professional relationships. Now even with the reopening of economy, the pandemic-led surge in users has not gone down.
The company, which consisted of Bumble and Badoo app, has recently bought France’s Fruitz in its first acquisition in an attempt to strengthen its foothold in Europe, where it plays catch-up with Tinder owner Match Group.
Excluding items, Bumble earned 13 cents per share for the quarter ended Dec. 31. Analysts on average had expected the company to break even on a per share basis, according to IBES data from Refinitiv.
(Reporting by Tiyashi Datta and Chavi Mehta in Bengaluru; Editing by Shailesh Kuber)