Bumble shares drop 21% after weak Q2 revenue forecast despite Q1 earnings beat

Bumble's shares fell about 21% after the company issued a weaker-than-expected revenue forecast for Q2, projecting $205-$213 million versus analyst expectations of $215 million. Despite beating Q1 earnings estimates with adjusted EPS of $0.34 and revenue of $212.4 million, the company faces pressure from a 21.1% decline in paying users to 3.2 million. CEO Whitney Wolfe Herd highlighted efforts to improve user quality and plans to launch a revamped AI-enabled platform later this year. Analysts remain cautious, noting ongoing user declines and a weaker near-term revenue outlook, though new features and marketing campaigns are expected to support recovery in 2027.