Bumble Inc. set the price range for its U.S. IPO and seeks to raise as much as $1 billion, Bloomberg reports.
Numbers To Consider:
- The company plans on selling 34.5 million shares between $28 and $30.
- This would value Bumble as high as nearly $6.5 billion, including debt.
Remind Me What This Is: Bumble is a dating app where only women can initiative conversation. Based in Austin, Texas, it was founded in 2014 by CEO Whitney Wolfe Herd.
- It’s currently in the “early stages of monetization and international expansion could accelerate growth,” according to Jeremy Abelson, the founder and portfolio manager at Irving Investors.
- The offering is being led by Goldman Sachs, Citigroup, Morgan Stanley and JPMorgan Chase & Co.
The Next Steps: Bumble plans for its shares to start trading on Feb. 11 under the ticker “BMBL.”
Bumble is growing revenues at a 15% annual clip, but in 2019 grew 36%, so I assume Bumble is taking a hit because folks aren’t dating as much due to the pandemic.
About 43% of its revenues come from Badoo, a mostly international dating app, but Bumble is clearly growing much faster than Badoo.
Bumble carries 73% Gross Margins and 26.3% Adjusted EBITDA Margins, although this is clearly growing as Revenues scale.
A $6.5 billion valuation would value the company at 11x Revenue, 15.6x Gross Profit, and 43.8x Adjusted EBITDA, on current run-rate financials. Given the post-pandemic growth rate of the business should be higher than 15%, I actually like the $BMBL stock at $30 per share.