Bumble IPO: Which Way We Swiping?

Bumble, the dating app backed by Blackstone Group, is preparing an IPO that could come as soon as next month.

Bumble could potentially raise $100 million with the initial public offering, though that figure is generally seen as a placeholder and will probably fluctuate in future filings. The Austin, Texas company has yet to divulge how many shares it plans to sell, or their price range; that information will be illustrated in future filings as well. Bumble is set to trade on the Nasdaq under the symbol BMBL, with Goldman Sachs [$GS] and Citigroup [$C] as lead underwriters on the deal.

In December, Bumble sent over its initial confidential IPO filings to the SEC. The current filing sets up Bumble to go public sometime in February. Fittingly, the dating app is expected to make its public-equity-market debut around Valentine’s Day. The IPO’s Just Keep Coming, This Time It’s Poshmark

Pioneered back in 2014 by CEO Whitney Wolfe Herd, Bumble calls itself a “women-first” dating app, as it allows women to make the first move. Women, once they match with someone, have 24 hours to start a conversation with their “target.”

CEO Whitney Wolfe Herd

Bumble runs two apps, Bumble and Badoo. More than 40 million users visit the apps each month to connect with new people. Bumble rivals against Tinder, which is owned by Match Group [$MTCH]. Match Group also operates Match.com, OkCupid, and Hinge.

The catch? Bumble isn’t profitable just yet. The start-up posted a loss of $84.1 million for the January 29 to September 30, 2020 time period, compared with a profit of $68.6 million for the nine months ended September 30. Revenue jumped nearly 4% to $376.6 million. Surprise, Surprise: Coinbase Files IPO

The IPO comes over a year since Blackstone [$BX] acquired a majority stake in MagicLab, which owns Bumble and Badoo. The investment valued MagicLab at about $3 billion. The prospectus didn’t say how much of Bumble Blackstone owns. That privileged information will also likely come in future filings.

$MTCH YTD

One thought on “Bumble IPO: Which Way We Swiping?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s