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Bumble announced today that founder Whitney Wolfe Herd returns as CEO later abandon from the position in 2023.
Wolfe Herd will succeed Lidiane Jones, the company’s current CEO who left for “personal reasons,” Bumble explained. Jones, the former CEO of Slack, will continue his role at Bumble until the transition takes effect in mid-March.
It is not uncommon for founders to return as CEOs. Notable examples include the return of Jack Dorsey Twitter and the return of Steve Jobs to Apple. The reasons for such a return may vary, but the founders are often a natural choice, since they remain closely connected with the company’s mission and culture.
Wolfe Herd’s return comes at a critical time for Bumble, as the company experiences slow growth. The results of the third quarter of 2024 revealed a 1% decrease in total revenue to $274 million, although the number of paying users increased to 4.3 million. Also, the average revenue per paying user (ARPPU) fell to $21.17 from $23.42. The return of Wolfe Herd can inspire confidence among investors.
As Bumble prepares to announce its fourth-quarter results next month, the company indicated alongside the CEO news that it expects to report app revenue “above the midpoints of the outlook ranges provided at first”. It will also report adjusted EBITDA within the disclosed outlook range.
In November, the company projected fourth-quarter revenue between $256 million and $262 million, with adjusted EBITDA expected between $70 million and $73 million.
