Bumble is discontinuing its two acquired apps, the dating and relationship apps Fruitz and Official. The move was shared during the company’s fourth-quarter earnings call.
As explained by CEO Lidiane Jones during the call, the choice to discontinue Fruitz, a French dating app, and Official, an app designed to help couples strengthen their relationships, allows the company to focus on its core businesses, Bumble and Badoo.
However, the move appears to contradict the company’s previous statements made in the first quarter of 2024. At that time, it expressed 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 grappling with financial challenges, prompting a reevaluation of business strategies.
“We have made the strategic decision to discontinue Fruitz and Official,” said Bumble founder Whitney Wolfe Herd, who will be returning to lead the company in March. “We expect the closure of these apps to result in an approximately $12 million revenue headwind for the year.”
Wolfe Herd steps back into her role at a critical time as many users become disillusioned with dating apps. During the earnings call, she mentioned a need to reset Bumble to focus on what truly works, prioritize safety measures, improve underlying technology, and introduce new features. Safety could be among the most critical, especially given the increased scrutiny around how competitors like Match have reportedly overlooked some safety measures.
Bumble said it’s set to launch several new features, including a new “Discover” tab, similar to Tinder, where users can find potential matches based on their interests. It’s also introducing a way for users to share their profiles in person.
“When I started Bumble, a big part of our success was that it was about removing rejection and filling confidence, but we are in a new dawn. We need to make sure that this is being initiated in every touch point of our product. So, this is exactly what we’re focused on, is bringing confidence, curiosity, joy back to this experience,” Wolfe Herd said.
The company reported that overall revenue fell by 4.4% to $261.6 million, a decrease from $273.6 million. This downturn was consistent with the company’s previous financial guidance but still reflects a concerning trend. Revenue from the Bumble app decreased by 3.8% to $212.4 million, compared to $220.7 million in the prior quarter, falling short of the guidance range of $207 million to $211 million.
Additionally, as of this writing, Bumble’s shares had fallen over 27% after reporting a disappointing first-quarter revenue forecast. The company projected revenue between $242 million and $248 million, which includes expected Bumble app revenue of $198 million to $202 million, representing a decrease between 6% and 8%.
