Bumble Acquires Dating Apps Fruitz & Official to Reduce Costs

Bumble Discontinues Fruitz and Official Apps

Bumble has announced the discontinuation of two apps it previously acquired: Fruitz and Official. This decision was revealed during the company’s fourth-quarter earnings conference call.

Strategic Shift in Focus

According to CEO Lidiane Jones, the decision to cease operations of Fruitz, a dating application popular in France, and Official, an app geared towards relationship strengthening, will allow Bumble to concentrate resources on its primary platforms, Bumble and Badoo.

This move represents a change in direction, seemingly contrasting with earlier statements made in the first quarter of 2024. At that time, the company had emphasized its commitment to growth through strategic acquisitions.

Industry-Wide Financial Pressures

The discontinuation occurs amidst financial difficulties experienced by Bumble and other companies within the dating app sector, necessitating a reassessment of current business strategies.

Revenue Impact and Leadership Transition

Bumble founder Whitney Wolfe Herd, who is returning to lead the company in March, stated that closing these apps is anticipated to result in an approximate $12 million reduction in revenue for the year.

Wolfe Herd’s return to leadership coincides with growing user dissatisfaction with dating apps. She highlighted the need to revitalize Bumble by prioritizing safety, enhancing its technological foundation, and introducing innovative features.

New Features and Product Focus

Several new features are planned for launch, including a “Discover” tab, functioning similarly to Tinder’s interface for interest-based matching. Users will also gain the ability to share their profiles directly in person.

“We need to ensure confidence, curiosity, and joy are integral to the user experience,” Wolfe Herd explained, emphasizing a return to the core principles that initially drove Bumble’s success.

Financial Performance and Outlook

The company’s overall revenue experienced a 4.4% decline, reaching $261.6 million, compared to $273.6 million previously. This downturn aligned with prior financial forecasts but indicates a concerning trend.

Revenue specifically from the Bumble app decreased by 3.8% to $212.4 million, falling below the projected range of $207 million to $211 million.

As of the latest reports, Bumble’s stock price has decreased by over 27% following the announcement of a less-than-optimistic first-quarter revenue forecast.

The company anticipates revenue between $242 million and $248 million, with Bumble app revenue projected between $198 million and $202 million. This represents a decrease of 6% to 8%.

Key Takeaways

• Bumble is streamlining its operations by discontinuing Fruitz and Official.
• The company is refocusing on its core apps, Bumble and Badoo.
• Whitney Wolfe Herd is returning as CEO to address user disillusionment and improve the platform.
• Financial results indicate a challenging period for the company.