Bumble (NASDAQ: BMBL), an alternative female-centered and female-led dating app, was first released in 2014 and made its initial public offering (IPO) in February of this year. The firm, which consists of both Badoo and its namesake app, has set out to compete with the likes of Tinder-owner Match.com (NASDAQ: MTCH) and Plenty of Fish with the use of its photo-focused and interactive profiles as well as by requiring that women initiate the first move.
Wall Street will be closely watching its earnings report this week to see how the newly-listed company is performing amid continued global lockdowns.
How can I buy Bumble stock?
Bumble lists on the NASDAQ exchange under the ticker ‘BMBL’.
Bumble raised a whopping $2.15 billion on its first day of trading which took place just a few days before Valentine’s Day. Investors fell in love with the women-go-first romance app and purchased shares at a higher price than initially expected. Its successful IPO gave the firm a valuation of $8.3 billion.
However, since then its stock has fallen and is down 38% with a market cap of $8.99 billion.
What can we expect from Bumble’s earnings?
Wall Street expects Bumble to post earnings per share of $0.01 on revenue of $178.74 million.
Investors will be keen to see a jump in users as growing competition in the online dating world is fierce. Despite Bumble’s namesake app being the number two dating service in the world, its other app, Badoo, is a lot less popular with singletons.
A recent survey from Evercore ISI reported that more women prefer using Tinder than Bumble and both males and females were more satisfied with Tinder. In addition, Match’s Hinge is continuing to gain attention. An analyst from Morgan Stanley, Lauren Schenk, believes that Hinge could surpass Bumble in monthly active users in the next two years if current growth rates hold.
Bumble has had a great track record in recent years. The company reported a revenue of $100 million in 2017, $488.9 million in 2019, and $417 million in the first nine months of 2020.
In its first report as a public company, Bumble posted revenue of $171 million, up from $79.1 million in the year-ago period. The company owed its successes in the first quarter to “notable growth in user engagement and retention globally.” As of Q1, Bumble said it had 48,294 in free cash flow which should help drive its mission to expand its global footprint.
Recently, the app has made progress in hard-to-reach countries such as India where women are subject to high levels of violence. Bumble has notably changed its app, such as the option of hiding personal information and promoting the friendship side, in the country to help protect women.
Bumble has around 12.3 million monthly active users, of which 9% have a paid subscription. Badoo has more than double the monthly active users, at 28.4 million, but has a lower-paid subscription level at 4.6%. In Q1, both apps’ total paying users increased 30% to 2.8 million, compared to 2.2 million in the year-ago period.
Bumble goes beyond dating — it has Bumble BFF and Bumble Bizz, which aim to help users make platonic friendships and professional connections. These features differentiate it from any other dating app currently on the market. The pandemic obviously hasn’t been good for the company, but it believes that its namesake app has not even nearly reached its total addressable market in North America yet.
The company is in the early stages of its international growth, carrying out successful tests in new markets across Europe, Asia, and Latin America, where it hopes its female-centered approach to connections will prove popular.
I don’t expect Bumble to monopolize the dating app scene, as I think society will always dabble between multiple apps with different fundamentals. However, having said that, Bumble has an alternative approach to creating connections between individuals and, for me, it is this alternative approach that makes the company much more attractive than the other dating app players currently in the market.
Contributing Writer at MyWallSt
Adam loves innovative SaaS tech companies; in particular ones that give people the freedom to make money or start a side hustle, like Etsy, Fiverr and Shopify.