• by Danielle Oster , November 9, 2024

 

As dating app company Bumble heads towards its first full year under new CEO Lidiane Jones – who joined the company back in January, ahead of the company laying off around 30% of its workforce the following month – her strategy for reshaping Bumble is coming into clearer view.

During an earnings call with investors discussing the company’s Q3 performance, which saw the company report a 1% revenue decline, Bumble said its brand revamp was off to a strong start – following a refresh of its flagship app and subsequent rebranding campaign launched in April.

In the earnings call, Bumble explained that its marketing spending had decreased for Q3 as the company shifted a portion of such spending to Q4 instead.

CFO Anu Subramanian attributed reduced marketing costs for Q3 to a “strategy of having the campaigns “better coincide with the launch of new products and feature ( like Bumble’s recent “Opening Moves” rollout).” Subramanian reported $63 million in selling and marketing expenses for the company in Q3, a decrease of 5% year-over-year, adding, “But in aggregate our plans in terms of what we intend to do for the full year has not changed. It's just a shift to spend between Q3 and Q4.”

That shift also may position Bumble to advertise during a period when there’s less competition for consumer attention from category leader Match Group (parent company of dating apps including Hinge, Tinder and Match).

In its own investors call discussing Q3 earnings this week, Match Group CFO Gary Swidler reported an increase of $2 million, or 2% YOY, in marketing spending for Q3 – primarily due to spending on Tinder. He noted that the company anticipated lower spending on marketing for Q4 compared to 2023, ““primarily due to lower planned spend at Tinder” and despite an increase in planned spending on Hinge to “spend into the strength at that brand” as the year draws to a close.

Bumble spent around $44 million on advertising media buys across channels through the first seven months of 2024, according to a category report by MediaRadar – more than any of its dating app competitors (including top dating app Tinder’s $41 million). That report came on the heels of the Bumble brand refresh campaign launched in April. Given Match Group’s comments on lower spending on its Tinder brand for the final months of the year, it seems like Bumble could hold onto that top spending spot for 2024.

 

 

 

 

 

 

 

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