Bumble is stopping its two acquired apps, namely dating and relationship apps fruit and Official. This move was shared during the company Fourth quarter revenue call Wednesday.
As CEO Lidiane Jones explained on the call, the choice of terminated the French dating app Fruetz, as well as the official app, designed to help couples strengthen their relationship, making The company can focus on its core businesses, Bumble and Badoo.
However, the move appears to contradict the company’s previous statements in the first quarter of 2024. then, Express A strong commitment to pursuing acquisitions as a way to drive growth.
The move comes as Bumble and others in the dating app industry have been dealing with financial challenges, prompting a re-evaluation of business strategies.
“We have made strategic decisions to stop fruit and official,” said Bumble founder Whitney Wolfe Herd. Who will return to the company in March. “We expect the closure of these apps will result in revenue of approximately $12 million that year.”
Wolfe Herd reintroduced his character at a critical moment, as many users were disillusioned by dating apps. During the revenue call, she mentioned the need to reset Bumblebee to focus on truly effective approaches, prioritize security measures, improve basic technology and introduce new features. Safety may be the most critical, especially given the increased scrutiny of competitors It is reported that like the game, some safety measures have been ignored.
Bumble said it will launch several new features, including a new “Discover” tab similar to Tinder, where users can find potential matches based on their interests. It also provides users with a way to share their profiles in person.
“A big part of our success when I started bumble was that it was about eliminating rejection and being confident, but we were in a new dawn. We needed to make sure that this was started at every touch point in our product. So, This is exactly what we focus on bringing confidence, curiosity, joy back to this experience.”
The company reported overall revenue fell 4.4% to $261.6 million, down from $273.6 million. This downturn is consistent with the company’s previous financial guidance, but still reflects trends related to the trend. Bumble App revenue fell 3.8% to $212.4 million, compared with revenue of $227 million in the previous quarter, below the guidance range of $207 million to $211 million.
Additionally, as of this writing, Bumble’s stock has fallen 27% after reporting a disappointing first-quarter revenue forecast. The company expects revenues between $242 million and $248 million, including expected Bumble App revenues of $198 million to $202 million, down 6% to 8%.
