Online dating firm Bumble edged past quarterly revenue estimates on Wednesday, as more paying users flocked to its platform in search of companionship.
The online dating industry had experienced a surge in popularity fueled by pandemic-induced curbs as people went the digital route to continue socialising, with the growth continuing its upward trajectory even after lockdown constraints have been removed.
Data from research firm Apptopia showed Bumble downloads rose nearly 35 percent year-over-year during the second quarter in the United States, while monthly active users jumped over 24 percent.
While Bumble has experienced a surge in popularity – with paying users growing 31 percent to 1.9 million in the quarter – its other dating app, Badoo, which is mostly used in Western Europe by the urban middle class segment, remains under pressure from ongoing economic uncertainties.
Bumble reported revenue of $50.8 million from Badoo and other apps in the quarter ended June 30, a 13.7 percent decline from a year earlier. In contrast, Bumble app revenue jumped 33.2 percent to $169.6 million $169.6 million (nearly Rs. 1,347 crore) in the same period.
The company said its revenue rose 18.4 percent to $220.5 million (roughly Rs. 1,751 crore) for the second quarter, compared with analysts’ average estimate of $219.4 million (roughly Rs. 1,743 crore), according to Refinitiv data.
Meanwhile, famous social media app, Facebook, reported an increase in users to 1.97 billion, defying analysts’ predictions of a drop. Facebook-parent Meta reported recently its first quarterly revenue drop and a plunging profit as the social media powerhouse battles a turbulent economy and the rising phenomenon of TikTok.
Meta had long delivered seemingly endless upward growth but after this income miss — and reporting earlier this year its first decline in global daily users — the company sounded a more modest tone.
“This is a period that demands more intensity, and I expect us to get more done with fewer resources,” CEO Mark Zuckerberg told analysts after the firm reported a 36 percent drop in profit to $6.7 billion (roughly Rs. 53,457 crore).
© Thomson Reuters 2022