Business Revenues and Expectations
First off, Bumble is a dating app designed by CEO Whitney Wolfe Herd to promote a safe and empowering platform for women. The most unique aspect of the app is that women are the first to reach out or message with their matches instead of having men or women do so in other apps such as Tinder. This app design has created an extremely popular app amongst its users.
In fact, the company has amassed an impressive 42 million monthly active users. More so than these business numbers, the app has also garnered 2.4 million paying users, which has certainly helped the company’s revenues. The company as a whole is expected to earn approximately $555.5 million based on analysis and predictions from the first three quarters of Bumble’s 2020 fiscal year. This is strong annual revenue for the company that has in turn pushed its conservative business valuation to more than $3 billion. While the valuation remains a major point of excitement for the business and investors, there are also some drawbacks to Bumble as well.
The largest point of hesitance among many investors and even from the company itself is the mounting debt that the business is currently responsible for. In fact, that debt has grown to a whopping $600 million. Another drawback for the company is its inherently risky business nature, which requires them to maintain popularity and large amounts of users with technology and social fads that continue to change and progress.
In a letter that accompanied Bumble’s IPO filing, CEO and founder Whitney Wolfe Herd wrote, “We remain committed to the major opportunity ahead of us to make dating healthier and more equitable around the world, not only for women, but for people across the gender spectrum. Our long-term vision is to be the platform to meet new people, no matter what you might be looking for, whichever life stage or situation you're in. We will do this with our innovative technology -- and by advocating for equality, both through legislation and with the power of our trusted brand.”
Bumble has proven itself to be an extremely popular dating app in the modern landscape, largely due to its “women message first” platform. With a large revenue and strong user base, there is a lot of upside for investors. However, with drawbacks such as the company’s major amount of debt, Bumble remains a major question for analysts and investors alike who are anxiously awaiting the company’s IPO debut.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.