Bumble sunsets acquired apps, fruitz and official to reduce costs

Bumble terminates its two acquired applications, dating apps and links Fruitz and OfficialS This move was shared during the company Call the fourth quarter profit On Wednesday.

As explained by Executive Director Lidiane Jones during the conversation, the choice of termination of Fruitz, a French dating app and officially, an application designed to help couples strengthen their relationships, allows the company to focus on their main business, bumble and Badoo.

However, this move seems to be contrary to the previous statements of the company made in the first quarter of 2024. At that time this expressed A strong commitment to pursuing acquisitions as a way of stimulating growth.

This move comes as Bumble and others in the dating industry face financial challenges, which has caused a reassessment of business strategies.

“We made the strategic decision to end the fruits and the official,” said Bumble founder Whitney Wolfe herd, Who will return to run the company in March. “We expect the closure of these applications to lead to approximately $ 12 million in the wind of revenue for the year.”

Wolfe Hurd returns to his role in a critical moment, as many users are disappointed with dating applications. During the profit call, she mentioned the need to reset Bumble to focus on what really works, to prioritize safety measures, improve basic technology and introduce new features. Safety can be among the most critical, especially given the increased control of how competitors Like the match, some safety measures have neglected.

Bumble said it was set to launch several new features, including a new Discover section similar to Tinder, where users can find potential matches based on their interests. It also introduces a way for users to share their profiles in person.

“When I started Bumble, much of our success was that it was about eliminating rejection and filling in confidence, but we are in a new dawn. We need to make sure that this is initiated at any point of contact of our product. So, this is exactly what we focus, restores confidence, curiosity, joy back to this experience, “said Wolfe Hurd.

The company said total revenue dropped by 4.4% to $ 261.6 million, which decreased from $ 273.6 million. This decline was in line with the company’s previous financial guidelines, but it still reflects the trend. Bumble revenue decreased by 3.8% to $ 212.4 million, compared to $ 220.7 million in the previous quarter, reaching the range of $ 207 million to $ 211 million.

In addition, Bumble’s shares fell over 27%after reporting a disappointing forecast for the first quarter revenue. The company predicts revenue between $ 242 and $ 248 million, which includes the expected revenue from applications from $ 198 million to $ 202 million, which is a reduction of between 6% and 8%.