Is Wall Street swiping left on dating apps?

Dating apps have become the go-to for singles with a smartphone, but turning swipes into a profitable business is proving much harder.

Bumble Inc. (BMBL stock), one of the most well-known dating apps, has become a prime example of this struggle as it fails to convert user growth into revenue.

Despite its massive user base, the company reported a 4% YoY revenue decline in Q4, bringing in $261.6 million, down from $273.6 million. And the outlook isn’t improving anytime soon.

Bumble expects Q1 revenue between $242 million and $248 million — a 7% to 10% drop from last year. Analysts polled by FactSet expected $257 million, according to Barron’s.

Following the earnings report, BMBL plunged 28% in February.

Scrambling for a turnaround, Bumble is now bringing back founder Whitney Wolfe Herd. In January, the company announced that Wolfe Herd would return as CEO in mid-March, replacing Lidiane Jones, who stepped down after just a year.

Jones cited “personal reasons” for her departure, but BMBL stock lost nearly 50% under her leadership. Since its 2021 IPO, Bumble’s market cap has cratered from $7.7 billion to $847 million.

People don't want to pay for dating apps

Bumble and Match Group (MTCH) dominate the online dating industry — but the two companies have lost a staggering $40 billion in market value since 2021.

Match also saw its stock tumble after reporting weaker-than-expected sales, and like Bumble, it’s shaking up leadership at the top.

The core problem? Young people aren’t willing to pay for dating apps like they used to. Instead, they’re meeting people through TikTok and Snapchat, where they can interact without a subscription fee.

Bumble also faces a business model dilemma. Unlike other social media platforms, dating apps have fewer ways to expand revenue streams, notes Joseph Parrish of Seeking Alpha.

“The open-ended nature of social media allows users to stumble into new revenue opportunities, such as promoting their business or creating content,” he wrote. “Dating apps have a narrower focus: Getting dates for their users, and there’s only so much an app can do to help that.”

Wolfe Herd has hinted at a broader vision for Bumble, calling for a “much broader lifestyle brand.”

For now, though, what that actually looks like remains unclear — and investors are running out of patience.