Bumble Explodes on the Market with Bumper IPO

February 12, 2021 02:08 PM AEDT | By Team Kalkine Media

Bumble Explodes on the Market with Bumper IPO

About Bumble Inc.

A market leader in the online dating space, the company operates two apps - Bumble and Badoo. The Bumble app was launched in 2014. The app allows women to make the first move to date with their chosen partner. The Badoo app launched in 2006 promotes the idea of dating honestly.

Bumble's paid offerings allow users to make their profile prominent and view who has liked their profile first. Moreover, they can set themselves to travel mode.

Bumble CEO Enters the Exclusive Female Billionaires' Club

The app is one of those dating apps that thrived even against the COVID-induced restrictions, as people turned to the app to engage in online dating.

The successful market debut is creating fortunes for the young, 31-year-old chief executive Whitney Wolfe Herd. Her stake is now valued at more than USD 900 million, which takes her overall fortune above USD 1 billion. The IPO has also enabled her entry into the exclusive self-made female billionaires’ club.

Understanding Going Public/IPO

Initially, the idea was to create a female-only social media platform, allowing females to complement each other. However, Ms Wolfe Herd ended up creating a match-making app as advised by Russian tech billionaire Andrey Andreev, who is also the founder of Badoo.

With women empowerment at its core, the app gives women the central power in a romantic relationship found through the Bumble app. The app has turned out to be among the top dating apps in the US.

Financial Highlights

For the period from 29 January 2020 to 30 September 2020, the company registered following figures:

Total revenue stood at USD 376.6 million, Bumble App revenue was USD 231.5 million, and Badoo App revenue was USD 145.1 million.
Net loss was USD 84.1 million, with a net loss margin of 22.3%.
Net cash through operating activities was USD 1.0 million, with an operating cash flow conversion of 1.2%.
Free cash flow stood at USD 4.7 million with a conversion of 4.8%.

The company expects significant upside in the adoption of online dating and intends to be a top app choice for users.

Also Read: What Is Direct Listing? How Is It Different From IPO?

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