Bumble dating app gets huge benefit in COVID-19, paid users reach close to 30 lakhs

Dating app Bumble on Wednesday beat expectations for current-quarter revenue, as a surge in paying customers amid the pandemic helped the dating app owner overcome challenges posed by the COVID-19 delta variant. Bumble shares rose 3 percent in extended trading as the Texas-based company also beat quarterly revenue estimates as total paid users rose 20 percent to 20.9 million.

Apps like Bumble and Tinder surged last year as people isolated due to lockdowns turned to virtual dating to rekindle romance. Now the economy is again under threat from the Delta variant. Now investors are once again hoping to see how dating apps can increase revenue if the pandemic hits again.

Bumble said it is confident about its performance for the remainder of the year, as it is seeing positive trends across platforms “even in the most impacted markets.” “As COVID intensifies and loneliness begins to plague people, people turn to us to connect with someone,” Bumble CEO Whitney Wolfe Herd said on a phone call. Hurd said Bumble also saw a surge in engagement and activity in India, even as the Delta variant spread across the country.

Search for platonic relationships is also on the rise, prompting companies like Match Group’s Tinder and Bumble to double down on services that help users find and keep friends. Data from research firm Apptopia showed that Bumble was downloaded more than 2 million times in the United States during the second quarter, an increase of nearly 18 percent year-over-year.

Its second-quarter revenue rose 38 percent to $186.2 million (roughly Rs. 1,380 crore), compared with Refinitiv IBES estimates of $178.7 million (roughly Rs. 1,330 crore). Bumble, which stands out from competitors by requiring women to make the first move, said it raised between $195 million (roughly Rs. 1,450 crore) and $198 million (roughly Rs. 1,470 crore), above expectations of $190.9 million. Current quarterly revenue expectations.