Bumble IPO Filing Warns of Apple IDFA Privacy Changes

Founder and CEO of Bumble Whitney Wolfe

Vivian Killilia | Getty Image Entertainment | Getty Images

Online dating app company Bumble said in its IPO filing on Friday that changes such as Apple’s upcoming privacy updates could harm its business.

Bumble said it expects only one to 20% of app users to agree to share a unique ID to app users for targeted ads following the upcoming change from Apple. Bumble said registration costs have increased for app developers and more limited ability for advertisers to measure precise targeting and campaigns.

The company, which said in the document that it would trade on Nasdaq under a $ BMBL ticker, runs dating apps Bumble and Badoo. Among its risk factors, it incorporated the IDFA change into a segment on its reliance on third-party publishers and platforms to distribute and market its products. It states that if those parties limit or alter that distribution or marketing, it could adversely affect Bumble’s business.

Apple’s change will prompt users with a pop-up in each app that allows users to track, with the option to either allow or deny tracking. Advertisers use IDs, when it is available, to target ads and measure how effective they are. But the change is expected to affect advertisers’ ability to target the way they advertise, as people likely won’t opt ​​for it.

Bumble earns revenue from online advertising, but states that its revenue is derived primarily from recurring subscriptions and in-app purchases. It also pays for advertising to acquire new users. The company stated that the total amount of advertising expenses ended December 31, 2019 was $ 130.4 million.

Tech companies are collaborating to effect the changes made by IDFA when enforcement begins this year. In a December note, Bank of America analysts said Facebook and Snap are most threatened by changes, potentially making 3% of revenue for Facebook and 5% headwinds for Snap.

Israeli mobile game developer Platika, which began trading on Nasdaq on Friday, also called for an IDFA change to its S-1.

“If players choose to use a greater number of opt-out mechanisms, then our ability to deliver effective ads will suffer, which could adversely affect our revenue from sports advertising,” Said Platika’s S-1.

Other risks

Bumble S-1 states that some publishers and channels have limited or restricted advertisements for dating products for various reasons, including those due to “bad behavior” by other services. Bumble said that using some marketing channels in the future will not provide any assurance and if it happens for a significant period of time then its business could be affected to a large extent.

Bumble also said that it relied on Facebook for targeted advertising and display marketing.

“In the event that we are no longer able to conduct targeted advertising and display marketing through Facebook, our user acquisition and revenue stream may be adversely affected,” says S-1.


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