The dating app also released a tepid forecast for next quarter’s revenue, along with indications that competition from Tinder is taking a heavy toll on it. However, revenues increased during the past quarter and the company went from loss to profit.

The dating app Bumble reported a jump in expenses and at the same time published a tepid revenue forecast for the third quarter which led to a drop in the stock. The concern is that the forecast indicates that competition with Match, the owner of Tinder, is negatively affecting business.

Besides Bumble, the company also owns Badoo and Fruitz apps. According to the announcement, total operating costs climbed more than 7% in the quarter that ended in June due to increased spending on product development and marketing.

“Tinder started allocating more money to marketing efforts and in response Bumble will increase the costs to acquire new users,” analyst Nicholas Kaulb of research firm Third Bridge told Reuters.

Bumble also reported disciplined and user growth in the quarter, and an increase in the number of people paying for the service despite inflation. The company stated that the number of paid subscribers in the second quarter rose to 3.6 million from 3 million in the second quarter of last year.

According to the company’s announcement, the application’s revenues increased in the second quarter by 23.4% to $208 million, compared to revenues of $168.5 million a year earlier. Total revenues jumped 18.5% to $259.7 million compared to $219.2 million in the same period last year. The net profit was 9.3 million dollars, compared to a loss of 5 million dollars a year earlier. The company also published a revenue forecast for the third quarter ranging from $274 million to $280 million.

“We believe our ability to deliver another strong quarter is a direct reflection of our commitment to creating enjoyable connections for the millions of people around the world who use our products,” said co-founder and CEO Whitney Wolf Heard.