Bumble’s Leadership Changes and Revenue Outlook

(Reuters) – Bumble announced that founder Whitney Wolfe Herd will return as CEO in March. The company anticipates exceeding its fourth-quarter revenue forecast.

Wolfe Herd, currently the executive chair of Bumble (NASDAQ:BMBL), will succeed Lidiane Jones, who departs after a year marked by a near 50% decline in the company’s shares.

The dating app industry, including major competitor Match Group (NASDAQ:MTCH), faces challenges due to sticky inflation and a lack of significant new features, impacting growth following a post-pandemic boom. This has resulted in various executive shake-ups.

Recently, Bumble reported the exit of finance chief Anu Subramanian, instrumental in its 2021 IPO, and marketing head Selby Drummond. Additionally, lead director Ann Mather has been appointed as chair of Bumble’s board.

The company indicated that its fourth-quarter adjusted core profit would fall within the previous range, with shares rising 1.3% in early trading. Bumble had earlier projected fourth-quarter revenue between $256 million and $262 million, and adjusted core profit between $70 million and $73 million.

This forecast follows Bumble’s first quarterly sales decline since going public in 2021 and signals a prolonged effort to improve its slow growth rate. Although Bumble launched a revamped app and new features last year, results have yet to resonate with Gen Z, a key advertiser demographic.