Investors made a “direct slip” on dating app operator Bumble Inc. on Thursday, sending their shares up 80% when they made their public debut.
Bumble Stock BMBL,
The stock opened at $ 76 at noon Thursday before rising slightly. The company’s initial public offering was priced at $ 43 a share Wednesday night, above a double range and enough for the company to raise $ 2.2 billion through the IPO.
The company, which runs its eponymous dating app, as well as ramifications for finding platonic friends and networking connections, lets people go through profiles of potential matches and makes money when users pay for premium features, like the ability to see who already liked them in the app. Bumble also operates Badoo, a dating app that is popular in Europe.
Bumble bills itself as focused on empowering women, including through its trademark feature that requires women to take the first step when sending messages about new connections. “We believe we have the potential to become a preeminent global women’s brand,” CEO Whitney Wolfe Herd said on the company’s virtual investor tour.
See more: Bumble heads to IPO with a focus on driving healthy relationships beyond dating
The company generated revenue of $ 416.6 million during the first nine months of 2020, compared to $ 362.6 million during the comparable period of the prior year. Bumble also posted a net loss of $ 118.5 million for the first nine months of 2020, compared to a net income of $ 54.0 million in the same period last year.
The company had 2.4 million average paying users as of September 30, an increase from 2.1 million a year earlier.
Bumble goes public as the IPO of the Renaissance IPO ETF,
has gained 40% in the last three months and, like the S&P 500 SPX,
it has increased by 10% in that period.