Revenues in 9M 2019 - 9M 2020
Invest in IPO Bumble
The company operates the Badoo and Bumble online dating apps; the Bumble dating app is known for having women initiate conversations. Badoo and Bumble currently serve over 40 million users on a monthly basis, with an average of 150 million messages sent every day in the nine months ended September 30, 2020. Bumble and Badoo rank among the top five grossing iOS lifestyle apps in 30 and 89 countries, respectively.
The company is a leader in the fast-growing online dating space, which has become increasingly popular over the last decade and is now the most common way for new couples to meet in the United States according to a study published by Proceedings of the National Academy of Sciences.
Approximately 40% of new couples meet online, surpassing bars, restaurants, and friends as the top source. However, the adoption of online dating in the United States and globally has a substantial runway.
The North American online dating market is projected to grow approximately 11% annually from approximately $2.0 billion in 2020 to approximately $3.4 billion in 2025 and the global market is projected to grow approximately 13% annually from approximately $5.3 billion in 2020 to approximately $9.9 billion in 2025.
The dating industry is highly competitive, with low switching costs and a consistent stream of new products and entrants, and innovation by competitors may disrupt the company’s business.
If Bumble is not able to maintain the value and reputation of its brands, the ability to expand its base of users may be impaired, and business and financial results may be harmed.
Bumble plans to sell 34.5 million shares at a price range of $37 to $39. The company intends to raise as much as $1B in an IPO of the common stock at about $7.4B valuation.
The company booked $543M in revenue for the last 12 months. Gross margin is around 73%. The revenue grew by 15% YoY in the first 9 months of 2020.
Bumble (BMBL) is asking investors to pay 13.5x sales. The closest public competitor is Match Group (MTCH), which is trading at 17.5x sales with similar revenue growth of 18% and gross margin of 74%. Bumble operates in a large and fast-growing market. The expected return on investment is high, more than 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.