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Bumble Opens 77% Higher Than IPO Price, Making 31-Year-Old Founder A Billionaire

Tyler Durden's Photo
by Tyler Durden
Thursday, Feb 11, 2021 - 12:38 PM

When we previewed the Bumble IPO in January, it had filed to sell 34 million shares (expected to price between $28 and $34).

Today, less than a month later, the female-comes-first (no pun intended) dating site has confirmed it priced 50 million shares at $43 last night (raising over $2.1 billion) - more than doubling in size to a valuation around $8.2 billion.

Private equity firm the Blackstone Group took a majority stake in Bumble’s parent company in 2019, in a transaction that valued it at $3 billion.

The company, catering to women and led by women, has made its 31-year-old female founder a billionaire (the youngest woman to take a company public on Nasdaq). At the IPO price, CEO Whitney Wolfe Herd’s stake was worth more than $900 million and as it opens for trading her overall fortune has pushed well above $1.4 billion.

In a letter to investors, Wolfe Herd said women making the first move is a “powerful shift.”

“Archaic gender dynamics and old-fashioned traditions still ruled the dating world,” she said.

“This led to all sorts of unhealthy dynamics that ultimately disempowered women and created unnecessary pressure for men.”

Having IPO'd at $43, Bumble just opened for trading at $76, valuing the company at around $14.5 billion...

As a reminder, the company, whose key investment highlight is that virtually everyone now meets online...

... disclosed that it had 2.4 million paying users as of Sept 2020, and the following financial results for the period from January 29, 2020 to September 30, 2020

  • Total Revenue of $376.6 million

  • Bumble App Revenue of $231.5 million

  • Badoo App and Other Revenue of $145.1 million

  • Net loss of $(84.1) million, respectively, with a net loss margin of 22.3%

  • Adjusted EBITDA of $98.9 million, representing Adjusted EBITDA Margin of 26.3%.

  • Net cash provided by operating activities of $1.0 million

  • Free Cash Flow of $(4.7) million

Surely all that is worth "at least" $14 billion.

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