Here’s everything you need to know about getting in on what’s expected to be one of 2021’s hottest IPOs
Bumble, an alternative female-centered and female-led dating app, was first released in 2014 and has recently filed for its initial public offering (IPO). Bumble has set out to compete with the likes of Tinder, Match.com, and Plenty of Fish with the use of its photo-focused and interactive profiles as well as by requiring that women initiate the first move.
When can I buy Bumble stock?
Bumble consists of both Badoo and its namesake app. Bumble will list on the NASDAQ exchange under the ticker ‘BMBL’. There has been no exact date decided for Bumble’s IPO yet, however, it is expected to take place in February of this year. We don’t yet know how much each share is expected to cost, nor do we know how much it’s expected to raise, but Bumble is attempting to achieve a valuation of between $6 billion to $8 billion after the IPO. The extra money raised will help the company with its expansion into newer markets.
Bumble has had a great track record in recent years. The company reported a revenue of $100 million in 2017, $488.9 million in 2019, and $417 million in the first nine months of 2020. Bumble recorded a net profit of almost $69 million in the first nine months of 2019 and a net loss of $117 million in 2020. In a reorganization in 2020, Bumble replaced MagicLab as the owner of both Bumble and Badoo, another dating app popular in Asia and Latin America, so we will be seeing at least a $200 million increase in Bumble’s next revenue announcement due to the addition of Badoo’s earnings.
Bumble has around 12.3 million monthly active users, of which 9% have a paid subscription. Badoo has more than double the monthly active users, at 28.4 million, but has a lower-paid subscription level at 4.6%. Both apps had a combined 2.4 million paying users in 2020, up 18.8% from 1.95 million in 2019.
Bumble goes beyond dating — it has Bumble BFF and Bumble Bizz, which aim to help users make platonic friendships and professional connections. These features differentiate it from any other dating app currently on the market. The pandemic obviously hasn’t been good for the company, but it believes that its namesake app has not even nearly reached its total addressable market in North America yet. The company is in the early stages of its international growth, carrying out successful tests in new markets across Europe, Asia, and Latin America, where it hopes its female-centered approach to connections will prove popular.
I don’t expect Bumble to monopolize the dating app scene, as I think society will always dabble between multiple apps with different fundamentals. However, having said that, Bumble has an alternative approach to creating connections between individuals and, for me, it is this alternative approach that makes the company much more attractive than the other dating app players currently in the market.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above.