Bumble’s IPO generated a total of $ 2.15 billion, with 50 million shares sold on Wednesday at $ 43 per share. Bumble founder Wolf Heard, 31, is the youngest woman to conduct an IPO for her company.
Bumble, the international dating app, will begin trading on the NASDAQ on Thursday under the symbol BMBL, following a more successful than the company anticipated, an IPO (initial public offering).
The peculiarity of the Bumble app is that women take the first step to get acquainted.
On Wednesday, Bumble sold 50 million shares at $ 43 each and raised $ 2.15 billion. The company previously planned to sell 45 million shares at a price of $ 37 to $ 39 per share, a target that was previously raised from 34.5 million shares at a price $ 28 – $ 30.
Bumble operates two dating apps, Bumble and Badoo, which are available in 25 and 51 different languages respectively around the world.
Bumble was formed in 2014 by Wolfe Herd, who previously co-founded the dating app Tinder, owned by Match Group. At 31 years old, Wolf Heard is the youngest woman to become the CEO of a large US company and lead it to an IPO.
Bumble’s largest investment was made by selling a controlling stake in private equity firm Blackstone Group Inc. in 2019, as a result of the deal, Bumble was valued at $ 3 billion.
According to the company, the total audience of the Bumble and Badoo apps has surpassed over 40 million monthly users. Successful PR with celebrities Priyanka Chopra and Serena Williams has helped the apps grow rapidly.
While Bumble is free to use, the company generates revenue when customers purchase premium subscriptions. This gives them the opportunity to expand the reach of their profiles or see who already liked them in the app. The company also generates income from advertising and affiliate programs.
At the end of the third quarter of 2020, the company had 2.4 million paying users, up from 2.1 million a year ago.
According to documents filed by Bumble, in the first nine months of 2020, losses amounted to $ 116.7 million against a profit of $ 68.6 million in the same period last year.
Bumble’s nine-month 2020 revenue rose to $ 416.6 million from $ 362.6 million a year earlier. The company’s revenues for the entire 2019 were $ 488.9 million, which is 36% more than in 2018.
The Bumble website states: “We have purposely created the Bumble app with features designed to empower women, giving them more control in relationships. We believe that by empowering women through changing the dynamics of relationships, we can make the world a better place for everyone. ”
In a letter to investors, Wolf Heard said the women who took the first step were a “powerful shift.” “Archaic gender dynamics and old-fashioned traditions still ruled the dating world. This led to all sorts of unhealthy dynamics that ultimately disenfranchised women and created unnecessary pressure on men. ”
In its IPO prospectus, Bumble warned that it sees high competition in the dating industry and “a constant stream of new products and members” as key risks for the company.
“Innovation from our competitors can disrupt our business,” Bumble said.
The underwriters of the Bumble IPO were the largest US banks Goldman Sachs, Citigroup, Morgan Stanley and JPMorgan Chase & Co.