Online Dating App Bumble Files For IPO

The unprecedented frenzy to sell stock now when markets remain elevated at all-time highs on the back of helicopter money, went into overdrive today when online dating app Bumble - which "differentiates" itself from the hundreds of other dating sites because women "make the first move" - filed to go public today.

The Texas-based company listed in its Friday S-1 filing an offering size of $100 million, which however is a placeholder amount that will change before the actual numbers are finalized. According to Bloomberg, Bumble, which was started in 2014, will seek a valuation of $6 billion to $8 billion in the listing, and with the company expect to float between 5% and 10% of its common stock, we anticipate the final offering will be around $500 million.

(Click on image to enlarge)

The company, which plans to list its shares on the Nasdaq under the ticker symbol BMBL, is using Goldman and Citigroup as lead managers on the offering. What is surprising is that Bumble has decided to pick a conventional route to court investors - a syndicate-led initial public offering - instead of taking advantage of the recent SPAC euphoria and reverse-merging with some already public shell.

(Click on image to enlarge)

The company, whose key investment highlight is that virtually everyone now meets online.

(Click on image to enlarge)

... disclosed that it had 2.4 million paying users as of Sept 2020, and the following financial results for the period from January 29, 2020, to September 30, 2020

  • Total Revenue of $376.6 million
  • Bumble App Revenue of $231.5 million
  • Badoo App and Other Revenue of $145.1 million
  • Net loss of $(84.1) million, respectively, with a net loss margin of 22.3%
  • Adjusted EBITDA of $98.9 million, representing Adjusted EBITDA Margin of 26.3%.
  • Net cash provided by operating activities of $1.0 million
  • Free Cash Flow of $(4.7) million

Surely all that is worth "at least" $8 billion.

Disclaimer: Copyright ©2009-2021 ZeroHedge.com/ABC Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies every ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.