The Bumble Inc. (BMBL) app is shown on an Apple iPhone in this photo illustration as the dating app operator made its debut IPO on the Nasdaq stock exchange February 11, 2021. REUTERS/Mike Blake/Illustration

(Reuters) -Bumble forecast fourth-quarter revenue below analysts' expectations on Wednesday, as the dating app owner's ongoing turnaround takes time to drive growth in paying users, sending shares of the firm down 9%.

The Austin, Texas-based matchmaking company is facing a broader slowdown in the online dating industry, as younger users experiencing "swipe fatigue" increasingly seek alternatives to swipe-based apps that once dominated the market.

Bumble, which laid off 30% of its workforce in late June under a new CEO, has overhauled its app and introduced artificial-intelligence-driven trust and safety tools to improve retention.

It has added phone number verification and selfie video authentication to curb fake profiles, but the changes have yet to deliver a clear lift in users or revenue.

On a post-earnings call, Bumble said it expects near-term weakness in paying users and new sign-ups as it prioritizes quality interactions over rapid expansion, adding that cuts in marketing spending contributed to an 8% year-over-year drop in payers.

Bumble’s current market capitalization stands at about $564 million, a significant decline from its post-IPO valuation in 2021.

Tinder-parent Match Group and other niche dating apps have also been contending with sluggish growth in payers, while experimenting with AI-powered matchmaking and subscription tiers aimed at fostering more meaningful connections.

In the third quarter, total paying users fell 16% to 3.6 million from a year earlier.

The company puts fourth-quarter revenue at $216 million to $224 million, with the midpoint below analysts' estimate of $233.3 million, according to data compiled by LSEG.

Bumble saw its third-quarter revenue decline 10% to $246.2 million, above analysts' expectations of $244.7 million.

(Reporting by Kritika Lamba in Bengaluru; Editing by Tasim Zahid and Sriraj Kalluvila)