Bumble reports strong earnings but faces growth challenges, analyst warns

Bumble Inc. reported third-quarter earnings that exceeded expectations, driven by improved operational efficiency. The company generated $273.6 million in revenue, slightly above analyst forecasts, and adjusted EBITDA reached $82.6 million, surpassing projections. Despite these gains, Bumble's app revenue declined 1% year-over-year, and average revenue per paying user fell 10%. In contrast, Badoo saw a 14% increase in paying users, with net new users significantly exceeding expectations. BofA Securities analyst Curtis Nagle maintained an Underperform rating on Bumble, raising the price target to $5.75. He expressed caution about future growth, citing potential challenges in increasing paying users amid macroeconomic pressures.