(Reuters) -Bumble forecast second-quarter revenue below analysts’ estimate on Wednesday, signaling that the dating app operator’s turnaround plan is taking longer than expected to yield results.
The online dating industry has been grappling with declining user engagement stemming from market stagnation, sticky inflation and a lack of innovative features, prompting companies such as Bumble and its bigger rival Tinder-parent Match to refine their applications to pull subscribers.
Paying users for Bumble app decreased 1% to 2.7 million during the first quarter.
Bumble is in early stages of revamping its application — a venture that analysts have said may take time to effectively monetize.
Earlier this year, the company had said these initiatives were aimed at strengthening the dating app operator’s market position and delivering quality features such as integrating artificial intelligence to its platform to enhance users’ security.
The company expects second-quarter revenue to be between $235 million and $243 million, compared with analysts’ average estimate of $243 million, according to data compiled by LSEG.
(Reporting by Kritika Lamba in Bengaluru; Editing by Shilpi Majumdar)
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