Bumble Inc. (NASDAQ: BMBL) entered the market with a bang on Thursday. The stock went out at $78, well above its original pricing at $43 per share. The company had expected to offer its 45.0 million shares in a price range of $37 to $39, with an overallotment option for an additional 6.75 million.
The underwriters for the offering are Goldman Sachs, Citigroup, Morgan Stanley, JPMorgan, Jefferies, RBC Capital Markets, Evercore ISI, Blackstone Capital Markets, BMO Capital Markets, Cowen, Raymond James, Stifel, BTIG, Nomura, SMBC Nikko, AmeriVet Securities, C.L. King, Drexel Hamilton, Loop Capital Markets, R. Seelaus, Ramirez, Siebert Williams Shank and Telsey Advisory.
Bumble operates two apps, Bumble and Badoo, on which over 40 million users come on a monthly basis to discover new people and connect with each other. Put simply, this is an online dating app. The market for online dating has become increasingly popular over the past decade and is now the most common way for new couples to meet in the United States.
The Bumble app, launched in 2014, is one of the first dating apps built with women at the center. On Bumble, women make the first move, and they did so more than 1.7 billion times from September 2014 to September 2020.
Bumble and Badoo are two of the highest-grossing online dating mobile applications globally, as of August 2020. Both of these apps rank among the top five grossing iOS lifestyle apps in 30 and 89 countries, respectively.
Accordingly, the company generated $488.9 million of revenue in the year ended December 31, 2019, representing year-over-year growth of 35.8%. It generated $376.6 million and $40.0 million in revenue in the period from January 29, 2020, to September 30, 2020, and in the period from January 1, 2020, to January 28, 2020, respectively.
Bumble intends to use the net proceeds from this offering to repay its indebtedness, as well as for working capital and general corporate purposes.
Bumble stock was last seen trading at $76.33, with a range of $73.24 to $79.60 on the day thus far. About 15 million shares had moved as of 12:45 p.m. Eastern.