(Reuters) -Bumble Inc beat market estimates for first-quarter revenue on Wednesday, helped by a rise in paying members crowding its dating apps to seek connection, sending the company’s shares up 14% after market.
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.
Bumble, which made its market debut in February last year, said total paying users increased to 3 million during the quarter, which helped boost revenue.
The company, which operates two major apps Bumble and Badoo, had bought France’s Fruitz in February to strengthen its foothold in Europe, where it plays catch-up with Tinder owner Match Group.
The company reported revenue of $211.2 million in the quarter ended March 31, compared with analysts’ estimates of $208.30 million, according to Refinitiv IBES data.
For the current quarter, Bumble forecast revenue between $218 million to $221 million, which includes an unfavorable impact from the conflict in Ukraine of $6 million, primarily in Badoo App. Analysts are expecting $224.16 million.
Shares of the Austin, Texas-based company rose to $20.00 in extended trading.
(Reporting by Tiyashi Datta and Mrinalika Roy in Bengaluru; Editing by Devika Syamnath and Shailesh Kuber)
