Bumble Files IPO and Notes Apple Privacy Policy Could be an Issue

Bumble Inc. made its IPO filing public Friday January 15th, following rumors that the company would go public in time for Valentine’s Day. The app is expected to list on NASDAQ under the BMBL ticker.

According to The New York Post, Bumble reported revenue of $488.9 million in 2019, and $376.6 million in revenue between January 29 and September 30th of 2020. (Fourth quarter results have not been reported.) The pandemic has helped fuel dating app sign-ups and activity, with people using them to connect in a time of social distancing. Bumble offers an in-app video chat feature, which has been incredibly popular the last several months as people were in lockdown.

According to CNBC, Bumble also noted in its filing that Apple’s new privacy policies could be a problem for the app going forward. Bumble collects revenue from online advertising, and these advertisers rely on targeted user data. Under Apple’s new privacy policy, users have to agree to opt-in for sharing their unique ID (IDFA) which tracks their online footprint, and the company expects 20% or fewer users to comply.  

This change doesn’t affect just Bumble but all apps, because for each different app, users will be presented with pop-ups asking for permission to track their movements. Advertisers use this technology to do targeted advertising and measure how effective they are, but if they can’t get the data because users won’t opt in, they are likely to put their money elsewhere. Bumble earns revenue from online advertising, though the company says most of it comes from subscriptions and in-app purchases, not from ads. 

Facebook however stands to lose more than other apps when the new privacy policy becomes effective, as the majority of their revenue comes from targeted advertising. This could impact Facebook Dating.

Bumble owns a suite of apps that include Bumble Dating, Bumble Bizz, and Bumble BFF, along with popular dating app Badoo. Together, the apps draw 42 million users each month. According to Bloomberg, there are 1.1 million users paying for Bumble’s premium features.

The company is said to seek valuation between $6 billion and $8 billion, with Goldman Sachs and Citigroup working on the offering.

The New York Post points out that tech companies are riding a lucrative wave in the wake of COVID-19, with two major companies making their IPOs late last year. DoorDash, an online delivery service, doubled its value when it went public, and Airbnb, a popular app for booking places to stay, almost doubled its initial listing price of $102. 

Bumble is expected to go public around Valentine’s Day.