Bumble, the popular dating app, has announced that its founder Whitney Wolfe Herd is returning as CEO, effective mid-March. Herd will succeed Lidiane Jones, who is stepping down from the position due to "personal reasons." Jones, the former CEO of Slack, will continue to serve in her role until the transition takes place.

This move marks a significant development for Bumble, which has been experiencing sluggish growth in recent quarters. The company's third-quarter 2024 results revealed a 1% decline in total revenue to $274 million, despite a increase in the number of paying users to 4.3 million. Furthermore, the average revenue per paying user (ARPPU) dropped to $21.17 from $23.42. Herd's return may inspire confidence among investors, who have been watching the company's growth trajectory closely.

It's not uncommon for founders to return as CEOs, as seen in the cases of Jack Dorsey's return to Twitter and Steve Jobs's return to Apple. Founders often have a deep understanding of the company's mission and culture, making them a natural fit for the top role. In Bumble's case, Herd's return may signal a renewed focus on the company's core values and a potential shift in strategy to drive growth.

As Bumble prepares to announce its fourth-quarter results next month, the company has provided an update on its expected performance. According to the announcement, Bumble expects to report app revenue "above the midpoints of the previously provided outlook ranges." Additionally, the company anticipates reporting adjusted EBITDA within the disclosed outlook range. In November, Bumble projected fourth-quarter revenue between $256 million and $262 million, with adjusted EBITDA expected to be between $70 million and $73 million.

The return of Herd as CEO may be seen as a positive move by investors, who have been waiting for a turnaround in the company's growth trajectory. With her at the helm, Bumble may be able to regain momentum and drive growth in the competitive online dating space. As the company navigates this critical period, all eyes will be on Herd's leadership and the impact it has on Bumble's future performance.

In conclusion, Whitney Wolfe Herd's return as CEO of Bumble marks a significant development for the company, which is facing sluggish growth and preparing to announce its fourth-quarter results. As the company looks to regain momentum, Herd's leadership and vision will be crucial in driving growth and shaping Bumble's future in the online dating space.