Dating app Bumble breaks up with 350 employees

American dating app with global operations Bumble said it will be laying off about 37% or approximately 350 employees as part of its restructuring plans. The company aims to realign its operating model with future strategic priorities amidst a broader trend of layoffs within the tech industry. 

Relaunching the Bumble app

“Today, we announced solid full-year results and a bold plan to transform Bumble and lead the company to its next phase of growth and innovation,” said Lidiane Jones, CEO of Bumble Inc.

“We are taking significant and decisive actions that ensure our customers remain at the centre of everything we do as we relaunch the Bumble App, transform our organization and accelerate our product roadmap. 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," Jones said.

Financial implications of the layoffs 

Bumble expects to incur about $20 million to $25 million in non-recurring charges due to the layoffs, aiming for annual savings of approximately $55 million. The company plans to reinvest around $15 million of these savings into product, engineering, safety, and brand areas to drive long-term growth. 

Bumble's financial performance 

Bumble's total revenue saw an increase of 13.2%, rising to $273.6 million from $241.6 million, including a bit of help from foreign currency movements, adding an extra $3.4 million to their revenue compared to last year.

Specifically, the revenue from the Bumble app, which is their flagship service, increased by 15.7% to $220.7 million, up from $190.8 million, with foreign currency movements contributing an additional $1.6 million.

Meanwhile, revenue from the Badoo App and other sources also went up by 4.2% to $52.9 million from $50.8 million, benefiting from $1.8 million due to favourable foreign currency changes.

The number of people paying for Bumble's services increased significantly, with total paying users rising by 16.4% to 4 million from 3.4 million. However, the average revenue per paying user (ARPPU) saw a slight decrease to $22.64 from $23.01.

Despite the revenue growth, Bumble reported a net loss of $32 million, which is a considerable improvement from the previous year's net loss of $159.2 million. Additionally, Bumble's adjusted EBITDA, which is a measure of the company's overall financial performance, was $73.7 million, or 26.9% of revenue, showing an improvement from $60.5 million, or 25% of revenue. 

Targeting younger users 

Bumble is preparing for a major overhaul of its app, the first in two years, to appeal more to younger users and address a "generational transition" in online dating expectations. 

The company also aims to enhance user experience by decluttering the app and introducing features that allow for more organic and natural discovery and interaction among users. The strategic pivot aims to rejuvenate user growth and engagement, which has slowed since late 2021.