Bumble Initial Public Offering could hit Wall Street soon; dating app plans NASDAQ listing

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Updated: Feb 02, 2021 1:40 PM

Between January and September of 2020, the revenue of Bumble stood at $376 million. During the same period, it incurred a loss of $84 million.

Bumble, IPO, TinderAccording Bumble, it had 42 million monthly active users as of the third quarter of 2020. (image: Reuters)

Dating application Bumble could soon be in your equity portfolio, instead of your mobile phone. The US-based women-centric dating app has filed papers to get its shares listed on NASDAQ and some reports say the IPO could come soon as we near Valentine’s Day. Bumble filed IPO papers with the US capital market’s regulator, Securities and Exchange Commission on January 15 and later filed supplement papers in the last week of the previous month. Bumble’s rival Tinder is already a NASDAQ listed company called Match Group.

Bumble’s IPO document said the firm’s Proposed Maximum Aggregate Offering Price will be $100 million dollars, however, that is likely to be changed as more details of the public issue are made public. The company operates two apps, Bumble and Badoo, according to its filing with the regulator. Bumble said that through the funds raised via the IPO, it plans to reduce the debt of the company.

For the year ending December  2019, Bumble’s total revenue stood at $488.9 million, a 35.8% growth over the previous year. Of this Bumble application’s revenue was $275 million while revenue of Badoo application was $213 million. Free cash flow at the end of 2019 was $91.7 million against $63.7 million in the year-ago period. Between January and September of 2020, the revenue of Bumble stood at $376 million. During the same period, it incurred a loss of $84 million.

According to the company, it had 42 million monthly active users as of the third quarter of 2020. It had 2.4 million paying active users between January 2020 and September of the same year. Bumble operates in over 150 countries around the globe. Bumble application has an Average Revenue per Paying User of $26.84 at the end of December 2019, according to the company while it total Average revenue per user was at $19.22. 

Upon its listing on NASDAQ, the company’s ownership will remain with Whitney Wolfe Herd, founder and the current CEO of Bumble along with private equity firm Blackstone Group. The private equity firm had acquired a stake in Bumble in 2019. Bloomberg has reported that the company could seek a valuation of $6 billion to $8 billion through the IPO.

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