Nov 5 (Reuters) - Bumble forecast
fourth-quarter revenue below analysts' expectations on
Wednesday, underscoring the challenges facing the dating app
operator as its ambitious turnaround plan struggles to gain
momentum.
Shares of the Austin, Texas-based company fell 7% in
extended trading.
Bumble has been revamping its strategy this year under a new
leadership, focusing on improving user experience and safety
tools powered by artificial intelligence rather than expanding
aggressively.
"While we expect our member base improvement work to create
near-term headwinds to revenue and paying user metrics, we are
prioritizing profitability and financial flexibility as we
invest in innovation to drive sustainable long-term growth,"
Chief Financial Officer Kevin Cook said in a statement.
For the third quarter, total paying users fell 16% to 3.6
million, from a year earlier.
The company sees fourth-quarter revenue between $216 million
and $224 million, the midpoint of which is below analysts'
estimates of $233.3 million, according to data compiled by LSEG.
(Reporting by Kritika Lamba in Bengaluru; Editing by Tasim
Zahid and Sriraj Kalluvila)