Bumble Files for IPO To Initiate Around Valentines Day
Photo by Boumen Japet via Shutterstock
Bumble, the female-centered dating app, is preparing for its debut on Wall Street.
According to Fast Company, the six-year-old dating app which allows women to make the first move revealed its plans to go public Jan.15 in a Securities and Exchange Commission filing. In a preliminary prospectus, Bumble revealed a net loss of $84.1 million on revenue of $376.6 million for the period between Jan. 29 and Sep. 30 of 2020.
In 2019, the company generated $488.9 million, which was up 36% from the year before. According to CNBC, Bumble said it expects just 20% of app users to agree to opt-in to sharing a unique ID, called the IDFA, for targeted advertising following the upcoming change from Apple. Results could increase cost per registration for app developers and a more limited ability for advertisers to accurately target and measure campaigns for specific users.
The company said in the document it will trade under the $BMBL ticker on the Nasdaq, which runs dating apps Bumble and Badoo. Risks included the IDFA change in a section on its reliance on third-party publishers and platforms to distribute and market its products.
According to the document, if parties limit, prohibit or change that distribution or marketing, it could adversely affect Bumble’s business.
The change from Apple will prompt users with pop-ups in each app that ask for permission to track users, with an option to either opt-in or decline tracking. Advertisers use the ID, when available, to target ads and measure their effectiveness. The change is expected to dramatically impact the ability of advertisers to target ads as they did previously, since people likely won’t opt-in.
Bumble, backed by the Blackstone Group Inc., could seek a valuation of $6 billion to $8 billion in an IPO, according to Bloomberg News. The firm is working with advisers including Goldman Sachs Group Inc., Citigroup Inc.and Morgan Stanley, people familiar with the matter have said.The Bumble app was initiated in 2014 by Whitney Wolfe Herd, co-founder of the dating app Tinder.