By Jaspreet Singh
(Reuters) -Bumble said on Tuesday it would cut about 350 roles, marking new CEO Lidiane Jones' first big move, after the online dating company forecast disappointing first-quarter revenue as it grapples with a slowdown in user spending.
Shares of the Austin, Texas-based company, which offers dating apps such as Bumble, Badoo, and Fruitz, fell more than 7% in extended trading.
Bumble expects to incur about $20 million to $25 million in one-time charges related to the job cuts, the majority of which will be recognized in the first two quarters of 2024.
The company competes with larger rival Match Group (NASDAQ:MTCH), which is looking to target younger users with intense marketing initiatives, as sticky inflation and high borrowing costs affect non-essential purchases. Last month, Match forecast current-quarter revenue below estimates.
Bumble would relaunch its eponymous app and revamp its premium plus offering, CEO Jones said on a post-earnings call.
"As core markets like the U.S. mature, the focus at Bumble will be on reigniting ARPU growth and driving further market expansion at a global level," Third Bridge analyst Jamie Lumley said.
Bumble expects annual revenue growth between 8% to 11%, compared with estimate of 13.3% growth, according to LSEG data.
Citi analysts said in a note on Tuesday that they are not surprised to see slowing growth at Bumble and its fiscal 2024 outlook is a "notable step down in growth."
Bumble expects current-quarter revenue between $262 million and $268 million, compared with analysts' average estimate of $277.9 million.
Total paying users across Bumble's apps increased to 4 million in the fourth quarter ended Dec. 31, from 3.4 million a year earlier.
In the fourth-quarter revenue came in at $273.6 million, falling short of analysts' estimates of $275.3 million. It also posted a surprise loss per share of 19 cents. Analysts on average were expecting a profit of 12 cents per share.