In a significant shift for the online dating industry, Bumble Inc. (NASDAQ: BMBL) founder Whitney Wolfe Herd has announced her resignation as CEO of the company after ten years at the top.
What Happened: Wolfe Herd will be stepping down from her role as the chief executive of Bumble and taking over as the company's executive chair. Her successor, Lidiane Jones, who is currently the CEO of Slack, is set to take the helm on Jan. 2, reported The New York Times.
While announcing her departure, Wolfe Herd praised Jones and expressed excitement for her new role with Bumble, which she believes will enable her to focus on the company's next stage of growth.
"This move to executive chair gives me the ability to step forward into a new and exciting role, get back to my founder roots and bring immense passion and focus to this next chapter of growth," Wolfe Herd said.
Bumble, which went public in a high-profile IPO in 2021, has reported having 2.5 million paying users as of its last earnings report.
The news of Wolfe Herd stepping down comes during a tumultuous time for online dating platforms. Match Group (NASDAQ: MTCH), the parent company of Tinder, has seen a slowdown in user growth and revenue.
This has led to a sharp decline in its stock value after revising its revenue outlook - the stock is down 36% this year so far.
Wolfe Herd founded Tinder, apart from Bumble.
Why It Matters: Whitney Wolfe Herd's departure as CEO marks a pivotal moment for Bumble. Her leadership has been instrumental in Bumble's growth since its IPO, racking up 2.5 million paying users.
Jones, on the other hand, has a wealth of experience working at Salesforce Inc. (NYSE: CRM) and Microsoft Corp. (NASDAQ: MSFT). Her background in technology and AI could just be the fuel that Bumble needs to remain competitive.