Bumble, once a titan in the online dating realm, is now grappling with a moment of truth.
Following disappointing Q4 2023 results, revealing a $32 million net loss against $273.6 million in revenue, Bumble faces a significant pivot to reignite growth. The company’s stock plummeted approximately 10% in after-hours trading, fueling urgency for change.
CEO Lidiane Jones declared a bold move: slashing 30% of Bumble’s workforce, about 350 employees, and initiating a comprehensive app overhaul. Jones unveiled plans to infuse AI advancements and bolster safety measures, aiming to captivate younger demographics with fresh features.
“We envision these measures strengthening our core capabilities and enabling us to deliver innovative user experiences that foster healthy and equitable connections,” Jones articulated during today’s earnings call. “While some users still adore the traditional online dating dynamics, others seek more organic encounters.”
Yet, Bumble confronts formidable rivals like Match Group, owner of Tinder and Hinge, fiercely vying for Gen Z allegiance. Bumble’s growth momentum has waned since late 2021, compounded by lukewarm responses to recent app updates.
Moreover, internal reshuffling followed founder Whitney Wolfe Herd’s transition to executive chair last November, with Jones enlisting four new C-suite executives within a week of joining from Slack in January.
This downturn isn’t exclusive to Bumble. Dating apps at large, including Match Group’s portfolio, grapple with declining revenue from younger users hesitant to splurge on premium features. Data from a 2023 Pew Research study reveals that while 41% of users aged 30 and above have subscribed to dating apps, only 22% of those under 30, the coveted demographic, have followed suit.
In response, platforms deploy diverse strategies. Tinder pivots toward fostering long-term relationships, catering to Gen Z’s shifting preferences, while Hinge champions real-world gatherings, launching initiatives to sponsor singles events.
