Bumble Inc., the parent company of the popular dating app Bumble, saw its stock soar after releasing a positive earnings report. The company reported better-than-expected revenue and user growth, sending shares up more than 10% in after-hours trading.
The strong earnings report was driven by a surge in user engagement on the Bumble app, as more people turned to online dating during the COVID-19 pandemic. The company reported a 23% increase in monthly active users, reaching a total of 42 million users. Additionally, Bumble saw a 33% increase in revenue, totaling $186.6 million for the quarter.
Investors were particularly pleased with Bumble’s ability to monetize its user base, as the company reported a 26% increase in average revenue per user. This is a key metric for dating apps, as it demonstrates the company’s ability to generate more revenue from each user.
Bumble’s CEO, Whitney Wolfe Herd, credited the company’s success to its focus on creating a safe and inclusive platform for users. She highlighted Bumble’s commitment to combating harassment and abuse on the app, as well as its efforts to promote diversity and inclusion.
In addition to its strong financial performance, Bumble also announced several new initiatives to drive future growth. The company is expanding its international presence, launching new features to enhance user engagement, and exploring opportunities to leverage its brand in other areas.
Overall, Bumble’s positive earnings report and future growth prospects have bolstered investor confidence in the company. Analysts are optimistic about the company’s ability to continue growing its user base and revenue, making Bumble Inc. a promising investment opportunity for the future. Investors will be watching closely to see how Bumble continues to innovate and expand its business in the coming quarters.