Shares of dating app operator, Bumble Inc. went up about 70% after they shared their IPO (Initial Public Offering) on Thursday.
The dating application has increased the price of its upcoming IPO by about one-thirds ahead of its proposed listing on NASDAQ. The company has also increased the size of the public issue, according to the revised terms filed with the United States Securities and Exchange Commission (SEC). Earlier, Bumble has said that the company would sell 35 million shares through its IPO in the price band of $28-$30 apiece, but now, it plans to sell 45 million equity shares at a price of $37-39 per share.
The dating app was valued at $8.2 billion at its IPO price, but shares have soared high on the very first day.
Features of Bumble
Along with helping its users find their romantic interests, the app also helps us look for platonic and networking connections. All you have to do is swipe through the profiles (right swipe for the ones you want to match with, and left swipe for the ones you are not interested in). Bumble also has a paid premium feature, where the users are able to see who all have already liked them on the app. Bumble, composed of its namesake app, also operates Badoo, a dating app that’s popular in Europe.
“We believe we have the potential to become a pre-eminent global women’s brand,”
Bumble takes pride in being an app that is focused on women’s empowerment, known for a female-first feature that allows women to make the first move when messaging new connections. “We believe we have the potential to become a pre-eminent global women’s brand,” Chief Executive Whitney Wolfe Herd said on the company’s virtual investor roadshow.
Cramer said Bumble is a well-run company and a safe place in the app ecosystem. “It’s a revolutionary app that is a gentle entrant into this business. This is part of a larger theme. Pinterest is safe, Twitter is getting safer. There is a rebellion going on about going after hedge funds and there is also a rebellion going on about going after hate. And hate is on the run right now.”
Through the listing of the company’s equity shares on the bourses, Bumble plans to reduce its debt and to redeem shares from pre-IPO owners, according to the filings with the SEC.
“Upon completion of this offering, we will have a total of 109,446,687 shares of our Class A common stock outstanding,” the company said in the IPO papers. “In addition, 45,136,782 shares of Class A common stock may be granted under our Omnibus Incentive Plan, including shares of Class A common stock issuable following vesting and upon exchange for 10,623,013 as-converted Incentive Units held by the Continuing Incentive Unitholders with a weighted average participation threshold of $12.32 per unit,” they added.
Bumble recorded a revenue of $376 million between January and September 2020. During the same period, the company reported a net loss of $84 million.
The company owns and operates two apps, Bumble and Badoo, where Bumble’s contribution to the revenue generation is higher. The IPO filing reveals that Bumble had 42 million monthly active users at the end of the third quarter of 2020. Between January and September of the previous year, Bumble had 2.4 million active paying users. Operating in 150 different countries, the application generates an Average Revenue per Paying User of $26.84.