The operator of the Bumble, Badoo, and Fruitz apps said that overall operating expenditures increased by more than 7% in the June quarter due to increased spending on product development and marketing.

Bumble shares slumped 4% on Tuesday after the dating app’s owner forecasted weak third-quarter sales and reported an increase in expenditures, raising concerns that strong rivalry with Tinder-owner Match was damaging its operations.

The operator of the Bumble, Badoo, and Fruitz apps said that overall operating expenditures increased by more than 7% in the June quarter due to increased spending on product development and marketing.

“As Tinder begins to spend more on marketing efforts, one thing to watch for (at Bumble) will be an increase in user acquisition costs,” said Nicholas Cauley, an analyst at research company Third Bridge, who predicted an increase in expenditures.

Match, the parent company of Tinder, estimated revenue for the third quarter above Wall Street projections last week, citing improved marketing as a driver of user growth.

Bumble has also benefitted from robust user growth throughout the quarter, as more individuals, despite inflationary constraints, continue to pay to find love and friendship.

Bumble App sales increased 23.4% to $208 million in the second quarter, up from $168.5 million the previous year. Total sales increased by 18.5% to $259.7 million from $219.2 million the previous year.

“In addition to attracting a record number of paying users on Bumble, we’ve successfully launched BFF as a standalone offering, which has further stabilized Badoo,” said CEO Whitney Wolfe Herd.

However, according to Refinitiv IBES data, Bumble expects third-quarter sales of $274 million to $280 million, a somewhat higher midpoint than Wall Street’s view of $275.6 million.

Total paying users climbed to 3.6 million in the second quarter, up from 3 million the previous year, while total average revenue per paying user (ARPPU) increased to $23.23, up from $23.51.

Net income was $9.3 million, compared to a net loss of $5 million.