Will Investors Feel Love? Bumble Files for IPO

Popular online dating app Bumble has filed an initial S-1 with the Securities and Exchange Commission (SEC) in preparation for its initial public offering (IPO). Company plans on business Nasdaq Stock exchange using the ticker symbol BMBL.

Since this is an initial filing, Bumble has not yet revealed how much it expects to raise, how many shares it will offer, or when the shares will start trading.

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The company was founded by Tinder co-founder Whitney Wolf Heard, who is also the CEO of Bumble. The company’s board – which is made up of 71% women – is attracting a lot of attention from investors. This should not be surprising, as the female-centric features of the Bumble app require women to take the first step. “We believe that we have the potential to become a prevalent global women’s brand,” the filing notes stated.

The company’s two dating apps, Bumble and Engagement, are two of the highest-grossing online dating mobile apps in the world. They are among the top iOS lifestyle apps in 30 and 89 countries respectively, the company said citing data from Sensor Tower. The apps claimed a total of 42 million monthly active users to close the third quarter, resulting in 2.4 million paying subscribers.

For the nine months ended September 30, 2020, Bumble reported revenue of $ 416.6 million, up about 15% over the year, significantly slower than the 36% increase in 2019. At the same time, the company went from loss to profit during the first nine months of the previous year, a loss of about $ 117 million, deteriorating from a profit of $ 69 million in the prior-year period.

There were two other notable issues in Bumble’s filing. The company admitted to a material weakness in its internal controls related to its financial reporting, although Bumble is working to rectify the issue. Additionally, the company earns some revenue from online advertising and stated that AppleOf (NASDAQ: AAPL) The decision to let users opt out of ad-tracking could stunt Bumble’s future development.

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