Dating application Bumble, which priced its shares at USD 43 per piece, witnessed a surge in its share by over 63 per cent on the day of opening. It touched the peak of USD 79.60 per share on Nasdaq.
It is stated that around 4.35 crore shares were traded. According to a CNBC, the company closed trading with a market cap of about USD 7.7 billion. The company is trading under the symbol ‘BMBL’ in Nasdaq.
The company said it had 12.3 million monthly active users as of September 30. The company is expected to use the money raised from the IPO to reinvest in features and product development, which will enable it to convert its user base into paid customers. Bumble, which faces competition from other dating apps like Hinge, OK Cupid, Tinder and other dating applications, has to focus on getting more paid customers to use its application. Whitney Wolfe Herd founded Bumble after a fall out with Tinder in 2014.
In its S-1 filing, the company generated USD 376.6 million of revenue in the first nine months of 2020, with a net loss of USD 84.1 million. In that same time period in 2019, it brought in revenue of USD 362.6 million, and reported a net profit of USD 68.6 million, stated.
Bumble generates its revenue mainly from in-app purchases and different subscription offerings and a small share of revenue comes from advertising and other partnerships. Subscription models of Bumble are Bumble Boost, which starts at USD 12.99 a week, and its upgraded Bumble Premium, which starts at USD 17.99 a week.