Bumble (BMBL)’s share price rises more than 5% to$66.5 on late Wednesday after reporting 31% jump in the fourth quarter sales to $165.6 million. According to Refinitiv IBES data, analyst expected a revenue of $163.3 million on average.
Bumble has given an upbeat outlook on the next quarter ranging from $163 million to $165 million, signalling a return to social life. In particular, the company expects demand from people who had been avoiding in-person dating due to the pandemic.
The restriction of social distancing has prompted people to seek company on dating apps as gathering with friends became a rarity.
Bumble sees massive growth opportunity in friendship product and is working on an app named Bumble BFF that offers a platform establishing friendships and platonic relationships.
According to Apptopia, a data analytics firm, Bumble currently captures 12.7% of the dating market share in the US, with nearly 5.5 million active monthly users and 2.2 million downloads during the quarter in the US alone.
Bumble has a key differentiation as oppose to its main rival Match Group (MTCH)’s Tinder, that is by giving women complete control in making the first move. However, Bumble still has a long way to go in catching up to the industry leader Match Group, with $2.4 billion in revenue in 2020 and 10.9 million active users.
According to Morningstar analyst Ali Mogharabi, they have increased revenue guidance for 2021 as they believe pent-up demand and long-term changes to online dating will benefit the industry.
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