Bumble share price: What’s the outlook following blockbuster IPO?
We look at the company’s recent operational performance as well as why one investment professional thinks the stock is a good option for ‘growth oriented’ investors.
Bumble’s blockbuster IPO
The dating world can be daunting. Bumble has aimed to change that, and maybe demand for its stock following its IPO suggests that it has. After pricing its initial public offering at $43 a share, the stock surged on debut last Thursday, closing out the session above $70.
The stock continued to rise last Friday, gaining a further $5.15 or 7.32%, to finish out the session at $75.46 per share.
With a focus on empowering ‘women to make the first move’, the dating application company has notched up significant growth in the last few years, reporting impressive top and bottom-line growth figures.
Looking first at Bumble’s ecosystem of users, at the time of the publishing their prospectus, Bumble said it had 42 million monthly active users (MAUs) spanning 150 different countries and had seen approximately 1.7 billion 'first moves' made on its platform. Maybe most interestingly, by the close of the September 2020 quarter Bumble had a staggering 2.4 million paying users – highlighting the lengths that individuals will go to enrich their social and romantic lives.
Here’s how those strong user engagement statistics have impacted Bumble’s top and bottom-line performance in recent times.
For the nine months ending September 30, 2020, the company reported:
- Total revenues of $376.6 million, made up of Bumble App revenues of $231.5 million
- Adjusted earnings (EBITDA) of $98.9 million, against a net loss of $84.1 million
Those results build on the positive trends Bumble saw by the close of FY19, where the company reported:
- Total revenues of $488.9 million, up 35.8% on a year-over-year basis
- Bumble App Revenue of $275.5 million, up 69.7% on a year-over-year basis
- Adjusted earnings (EBITDA) of $101.8 million, up 54.7% on a year-over-year basis
- Free Cash Flow came in at $91.7 million in 2019
Bumble share price: Where next?
According to finance personality Jim Cramer, Bumble is a solid option for an investor with a growth mindset. Comparing it to Match Group, parent company of popular dating app Tinder, Cramer said:
‘If you’re a growth-oriented investor, Bumble’s the way to go,’ while adding that ‘If you’ve got a more cautious approach to the market and you still want an online dating stock, Match is the way to go,' - via CNBC.
Commenting on its own future, in the prospectus it was noted that:
‘We are just getting started. We see significant upside in our core online dating market driven by the steady growth of the global singles population, increasing adoption of online dating both in the United States and globally and increasing propensity to pay for online dating.’
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.