Dating and networking service Bumble has requested a post.
The company, started by a former co-founder of IAC-owned Tinder, plans to list on the Nasdaq stock exchange, using the ticker symbol “BMBL”. Bumble’s planned IPO was first reported in December.
Whitney Wolfe Herd, CEO of Bumble, was part of the founding team of Tinder before starting Bumble. She sued Tinder for sexual harassment and discrimination, which was at least somewhat inspiring in her quest to create a dating app that puts women in the driver’s seat.
In 2019, Wolfe Herd took the helm of MagicLab, renamed Bumble Group, in a $ 3 billion deal with Blackstone, replacing Badoo founder and CEO Andrey Andreev following a harassment scandal at within the company.
Company targets public markets at a particularly exhilarating time for new offerings, with investors embracing venture capital-backed IPOs in late 2020 and early 2021. Previously private companies like Airbnb, Affirm and others have seen their fortunes soar thanks to the prices that public investors are willing to pay, possibly inducing more IPO deposits than the market could have been able to afford. see it otherwise.
You can read his IPO filing here. TechCrunch will have its usual document teardown later today, but we’ve pulled out a few key numbers so you can start your own research.
But before doing so, the composition of the board of directors of the company, namely that it is more than 70% women, is already draw applause. Now in his numbers.
Inside Bumble’s IPO filing
Consider Bumble from three angles: use, bottom line, and ownership.
Use-wise, Bumble is popular, as you can imagine a dating service would have to grow to the scale required to go public. The company claims 42 million monthly active users (MAU) in the third quarter of 2020 – many companies will try to market themselves based on their third quarter results from 2020 as it takes time to close the fourth quarter and the full calendar year.
These 42 million UAMs translated to 2.4 million paying users in total in the first nine months of 2020; the percentage of paying users at MAUs is therefore not 2.4 million divided by 42, but a smaller fraction.
As for the numbers, let’s remember that Bumble sold the majority of himself a few years ago. We are talking about this because Bumble’s financial results are complicated due to its ownership structure.
After the IPO, Bumble Inc. will be “a holding company, and its only material assets will be a controlling interest in Bumble Holdings,” according to the S-1 filing. So how is Bumble Holdings doing?
Way? In doing the sums ourselves, as the company’s S-1 is full of accounting nuances, in the first nine months of 2019, Bumble handled the following:
- Revenues of $ 362.6 million
- Net earnings of $ 68.6 million
And then, combining two columns to provide a similar set of results for the same period of 2020, Bumble recorded:
- Revenues of $ 416.6 million
- Net income of – $ 116.7 million
For those that follow, we use the line “Net profit (loss)”, for profitability, not “Net profit (loss) attributable to owners / shareholders” as this would require even more explanation and we keep it simple in this first look.
While Bumble saw modest growth in 2020 in Q3 and a strong evolution of losses on a GAAP basis, the company’s adjusted profitability increased over the same period. The company’s Adjusted EBITDA, a highly non-GAAP measure, fell from $ 80.0 million in the first three quarters of 2019 to $ 108.3 million in the same period of 2020.
While we are generally willing to allow fast-growing companies some leniency on adjusted metrics, the gap between Bumble’s GAAP losses and its EBITDA results is a stress test of our compassion. Bumble has also gone from positive free cash flow in the first nine months of 2019 to the first quarters of 2020.
If you extrapolate Bumble’s Q1, Q2, and Q3 revenue to single digits for the full year, the company could manage $ 555.5 million in 2020 revenue. Even with a modest software multiple, the business would be worth more than the number. $ 3 billion that we discussed before.
However, its strong non-profitability in 2020 could weaken its possible valuation. More as we deepen the ranking.
Finally, on the issue of ownership, the company’s record is surprisingly devoid of data. Its main shareholders section looks like this:
When we know more, we will share more. Until then, enjoy reading S-1.