Bumble Inc beat first-quarter profit and revenue estimates on Wednesday, helped by a rise in paying members crowding its dating apps to seek connection, sending the company’s shares up 11% in after-hours trading.
The resurgence in COVID-19 cases has helped dating apps to keep users picked up during the pandemic, as people stuck at home sought virtual social interaction.
Data from research firm Apptopia showed that Bumble downloads in the United States increased 20.6% during the first quarter, while monthly average users rose 13.7%, compared to a year earlier.
“Bumble App drove substantial revenue growth across the U.S. and international markets and delivered a significant sequential increase in paying users,” Chief Executive Officer Whitney Wolfe Herd said in a statement.
The owner of the dating app that requires women to make the first move said total paying users increased by 7.2% to 3 million during the quarter, which helped boost revenue to $211.2 million, above analysts’ estimates of $208.30 million.
For the current quarter, Bumble forecast revenue between $218 million to $221 million, which includes an unfavorable impact from the Ukraine conflict of $6 million, primarily in Badoo App.
Analysts are expecting $224.16 million.
Earlier in March, Bumble said it was discontinuing operations in Russia, that included the removal of all of its apps from Apple App Store and Google Play Store in Russia and Belarus.
Bumble said it lost 60,000 paying users between the fourth and first quarter in Russia, Ukraine and Belarus and it expects a decline of about 120,000 to 130,000 paying users across these three markets in the current quarter.
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Excluding items, Bumble earned 13 cents per share for the first quarter. Analysts on average had expected the company to report a loss of 3 cents, according to IBES data from Refinitiv.
Shares of the Austin, Texas-based company rose to $11.4% to $19.64 in extended trading.
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