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Popular dating app Bumble is “swiping left” on 30% of its workforce as it grapples with recent financial setbacks and strategic shifts, joining a broader trend of layoffs in the tech sector.
Bumble Reports Net Loss of $32 Million
The company’s latest financial report for Q4 2023 revealed a net loss of $32 million alongside revenue totaling $273.6 million. Although this represented an improvement from the previous year, the figures fell short of market expectations, triggering a sharp decline of approximately 10% in Bumble‘s stock during after-hours trading.
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Bumble CEO Lidiane Jones addressed the disappointing performance by announcing a restructuring initiative, resulting in the termination of 30% of Bumble’s workforce, equating to around 350 employees.
“We are taking significant and decisive actions that ensure our customers remain at the center of everything we do as we relaunch Bumble App, transform our organization and accelerate our product roadmap,” Jones said in a press release.
“We believe these actions will strengthen our foundational capabilities and enable us to continue delivering new and engaging user experiences that create healthy and equitable relationships. I am confident in our team’s ability to deliver Bumble’s next chapter of growth as we sharpen our focus on execution,” she added.
Read Also: Bumble Introduces Guidelines to Curb Ghosting, No-Show Behavior in Real-Life Meetups
Bumble Swipes Left on 350 Employees
The company also detailed its intentions to streamline operations by reducing its global workforce, a move expected to affect approximately 350 people. These measures aim to realign the company’s operational model with its future strategic objectives and foster enhanced operating efficiency.
Bumble expects to incur non-recurring charges of $20 million to $25 million, primarily encompassing severance packages, benefits, and associated costs for impacted employees.
Additionally, the company disclosed a substantial share repurchase program amounting to $136 million during Q4 2023, with $143 million remaining available as of December 31, 2023.
Jones underscored the company’s commitment to transformation and growth, emphasizing a customer-centric approach and a revitalized product roadmap. Despite facing challenges, Jones expressed confidence in the company’s ability to navigate the evolving landscape of online dating and deliver compelling user experiences.
Financially, Bumble reported a 16.4% increase in revenue, surpassing $1 billion for 2023. The Bumble app witnessed a revenue surge of 21.7%, reaching $844.8 million, while the Badoo app and other revenue streams experienced a marginal decline
Notably, total paying users rose by 16.9% to 3.7 million, contributing to a stable average revenue per paying user (ARPPU) of $23.03. Despite posting a net loss of $1.9 million, Bumble achieved an adjusted EBITDA of $275.6 million, representing 26.2% of revenue.
“As we look to the year ahead, we are focused on execution and setting the stage for the next phase of growth. We are implementing a clear plan designed to drive product velocity and reduce operational friction, which we believe will enable us to invest in our key growth initiatives while strengthening our margin profile and cash flow potential for the years ahead,” said Anu Subramanian, Chief Financial Officer of Bumble Inc.
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