(Reuters) -Bumble Inc projected full-year revenue growth for 2023 above market estimates on Wednesday as users continued to sign up to its dating app despite a looming recession, sending the company’s shares up 6% in extended trading.
A pullback in the U.S. dollar from last year’s highs and new features such as “Compliments”, which allows users to engage by sending a note before they decide to connect, have helped the company cope with high inflation and rising interest rates.
For the full year 2023, Bumble forecast revenue growth between 16% and 19%, the midpoint of which is above analysts’ estimate of 16.97%, according to Refinitiv data.
Bumble’s strong forecast contrasted with earnings from rival Match Group Inc, which forecast first-quarter revenue below expectations after Tinder became a sore point in 2022 and drove the company’s first ever quarterly decline.
In the last three months of 2022, Bumble’s total paying users increased to 3.4 million, from 3 million a year earlier.
The company reported revenue of $241.6 million for the quarter, compared with analysts’ estimate of $235.9 million, according to Refinitiv data.
(Reporting by Samrhitha Arunasalam and Vansh Agarwal in Bengaluru; Editing by Krishna Chandra Eluri)
