Online Dating App Bumble Files For IPO
The unprecedented frenzy to sell stock now when markets remains 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.
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.
The company, whose key investment highlight is that virtually everyone now meets online..
… 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.
Fri, 01/15/2021 – 12:05