Bumble Inc (NASDAQ:BMBL) remains invested in artificial intelligence-powered features to compete with online dating rivals like Tinder.
CEO Lidiane Jones showcased upcoming AI tools during Goldman Sachs' annual technology conference, with plans to leverage AI to improve photo selection, conversation prompts, and profile creation for its users, TechCrunch reports. Tinder has 9.6 million paying users, whereas Bumble has 2.8 million as of the second quarter of 2024.
Bumble looks to launch the AI innovations by winter and aims to reduce the anxiety users face during profile creation.
These updates follow Bumble's ongoing focus on integrating AI into its services to remove fake profiles and blur inappropriate images.
The company is also focusing on improving its free experience.
Bumble reported second-quarter topline growth of 3.4% to $268.6 million, missing the analyst consensus of $271.8 million. Total paying users reached 4.1 million, from 3.6 million a year ago. Bumble App revenue increased 4.8% to $218.0 million. Bumble expects third-quarter revenue of $269 million-$275 million versus the $273 million estimate. Multiple analysts downgraded the stock's rating and cut their price targets as the quarterly print disappointed the Street.
Analyst Chandler Willison acknowledged a slowdown in growth for Bumble, similar to Tinder, including a market saturation.
Bumble stock plunged over 59% in the last 12 months.
Price Action: BMBL stock is up 1.56% at $6.50 premarket at last check Wednesday.
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