Bumble announced today that founder Whitney Wolfe Herd is returning as CEO after stepping down from the position in 2023.
Wolfe Herd will succeed Lidiane Jones, the company’s current CEO who has left for “personal reasons,” Bumble explained. Jones, the former CEO of Slack, will continue her role at Bumble until the transition takes effect in mid-March.
It’s not uncommon for founders to return as CEOs. Notable examples include Jack Dorsey’s return to Twitter and Steve Jobs’ return to Apple. The reasons for such a return can vary, but founders are often a natural choice as they remain closely connected to the company’s mission and culture.
Wolfe Herd’s return comes at a critical time for Bumble, as the company is experiencing sluggish growth. The third-quarter 2024 results revealed a decline in total revenue to $274 million, even though the number of paying users increased to 4.3 million. Additionally, the average revenue per paying user (ARPPU) dropped to $21.17 from $23.42. Wolfe Herd’s return may 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 previously provided outlook ranges.” 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 to be between $70 million and $73 million.
