Whitney Wolfe Herd, the founder of Bumble, is set to return as CEO of the dating app company after stepping down from the position in 2023. Wolfe Herd will succeed the current CEO, Lidiane Jones, who is leaving her post due to "personal reasons." Jones will continue to lead Bumble until the transition is completed in mid-March. Wolfe Herd's return comes at a critical juncture for the company, which is grappling with sluggish growth.
Bumble's third-quarter results for 2024 revealed a decline in total revenue, dropping to $274 million. Despite this downturn, the number of paying users increased to 4.3 million during the same period. This mixed performance underscores the challenges Wolfe Herd will face as she steps back into the leadership role. Her return is expected to inspire confidence among investors, signaling potential revitalization for Bumble.
The company's financial outlook remains cautious. Fourth-quarter revenue is projected between $256 million and $262 million, with an adjusted EBITDA expected to range from $70 million to $73 million. The average revenue per paying user (ARPPU) saw a decline, falling to $21.17 from $23.42 previously. However, Bumble remains optimistic about its app revenue, anticipating it to exceed the midpoints of their previously provided outlook ranges for the fourth quarter.
Wolfe Herd's leadership is viewed as a beacon of hope for reversing Bumble's current trajectory. Her experience and vision are anticipated to steer the company towards renewed growth and stability. As she prepares to reclaim her role as CEO, stakeholders are keenly watching for strategic moves that could reinvigorate Bumble's market performance.
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