Bumble Inc.'s stock surged nearly 9% in after-hours trading on Wednesday, after the dating app company reported better-than-expected third-quarter revenue, driven by an increase in paid subscriptions.
The company's revenue for the quarter was $273.6 million, surpassing analysts' average estimate of $271.9 million. This growth was fueled by a 10% year-over-year increase in the number of paying users on the Bumble app, which reached 2.9 million, up by 52,000 from the previous quarter.
Despite the strong third-quarter performance, Bumble provided a cautious outlook for the fourth quarter, forecasting revenue between $256 million and $262 million, slightly below analysts' expectations of $260.2 million. This guidance suggests that the company may face challenges in sustaining the robust growth in paid subscribers amid potential economic headwinds.
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