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Bumble Inc. (BMBL) and Match Group, Inc. (MTCH): All You Need to Know About this social apps company

BUMBLE is a social app that promotes communication between users that are involved. Bumble has 5 million monthly users as of September 2019, rendering it the second most common dating app after Tinder in the United States. Shortly after the launch of BUMBLE, Tinder co-founder Whitney Wolfe Herd quit Tinder. 46.2 percent of consumers are women, according to a study published in June 2016. The business is worth more than $ 1 billion, according to Forbes, and the company estimates that it has 55 million customers in 150 countries.

While on the other hand, Match Group Inc. is located in Dallas, Texas that focused on internet and Technology Corporation. It controls and runs the largest portfolio of famous online dating sites in the world, including Tinder, Match.com, Meetic, OkCupid, Hinge, Plenty Of Fish and ship, a total of more than 45 worldwide dating firms. The business has 928.3 million subscribers in 2019, 4.554 million of whom were in North America. Match Group became an autonomous public entity in July 2020.


Bumble Inc. (BMBL)


BUMBLE Inc. operates 2 dating applications, Bumble and Badoo, together draw more than 40 million monthly consumers. Furthermore, it claims Bumble and Badoo for August 2020 are two of the world’s best earning online dating smartphone applications.

In the first nine months of 2020, Bumble had sales of $ 413 million and a loss of $ 28 million, according to Bumble’s IPO records (Times, 2021).

On February 2, 2021, Bumble shares rose 63.5 percent to end at 70.31, according to the market code BMBL. At a price of $ 43, the firm sold 50 million shares and collected funds for 45 million shares. This is $ 4 higher than the upper limit of its upward range. Prior to this, 34.5 million securities were initially expected to be sold at a range of $28 to $30. The valuation on the market is $ 8.2 billion (Bursztynsky, 2021).

Bumble aims to use the profits from the sale of 9 million securities (net of underwriting discounts) to redeem, for general corporate purposes, some of the premium Secured Term Loan products and to fund the expense of the issuance. BUMBLE aims to use the proceeds from the issuance of 41 million shares (48.1 million shares if the underwriter completely uses the opportunity to buy additional general Class A shares) (net of underwriting discounts) in order to purchase or the same number of securities in such Blackstone Company companies from outstanding shares (Katharine Gemmell, 2021).


Match Group (MTCH)

One of the opponents of Bumble is the Match Group (MTCH). The world’s largest multinational collection of famous online dating sites, including Tinder, Match.com, OkCupid and Hinge, is owned and run. With a market capitalization of close to $ 45 billion, Match traded close to an all-time peak. Match’s share price fell 1 percent to end at 169.60 points in early trade on February 11, 2021 (Zacks, 2021).

Match Group Inc. On February 1, (Nasdaq: MTCH) reported earnings. The technology business posted $ 0.48 per share in quarterly results, meeting $ 0.48 in Zacks’ Consensus Estimate. Compared with an industry average estimate of $ 605.4 million, the sales of the technology firm for the period was $ 654.1 million (Fidelity, 2021).

Match Company has a 2.43 percent operating profit margin and a 32.15 percent return on equity for the last 12 months. In the quarter, sales from the sector rose by 19.1 percent relative to the same time last year. The company’s earnings per share were $ 0.45 in the same time last year (March, 2021).


Competitor Analysis

BUMBLE is the faster rising of the two contestants, according to the details in the S-1 file. Net sales in 2019 was $ 488.9 million, a rise of almost 36 percent from $ 361.0 million in 2018, the firm said. As for 2020, which was plagued by the epidemic, BUMBLE announced that gross sales were $416.6 million for the first nine months of September 30, $40 million was generated between January 1 and January 28.

During the pandemic, BUMBLE’s corporation increased by 15 percent relative to the same 9 months of 2019 (when gross revenue was $ 362.6 million). As for Match Group, for the full year 2020, the organization reported gross sales of $ 2.4 billion, an improvement of 17 per cent over 2019. Revenue rose by 19 percent in 2019 relative to 2018.

As there is no user-by-user analysis, sales comparison is the only approach to determine BUMBLEs and Matching Group. This year, BUMBLE is estimated to have revenue of $300 million, while Match’s income is projected to hit $2.4 billion, eight times its sales. This indicates that Bumble has not learned from it, though BUMBLE mentions that it has several consumers.

Investment Disclaimers

Reference

Bursztynsky, J. (2021). Bumble stock closes up 63% after soaring in market debut. CNBC.

Fidelity. (2021). Fidelity. Retrieved from https://eresearch.fidelity.com/eresearch/evaluate/snapshot.jhtml?symbols=MTCH

Katharine Gemmell, C. W. (2021). Bumble Starts Trading After Its $2.15 Billion IPO. Should You Buy?

Match. (2021). Market Watch. Retrieved from https://www.marketwatch.com/investing/stock/mtch/financials?mod=mw_quote_tab

NEWS, M. (2021). Bumble raises $2.15 billion in first stock market move after raising IPO price, founder becomes rare female billionaire.

Times, F. (2021). Financial Times. Retrieved from https://www.ft.com/content/59b22880-22ea-4415-b9d6-8721301d44c9

Yahoo. (2021). Yahoo Finance. Retrieved from https://finance.yahoo.com/quote/BMBL/chart?p=BMBL#eyJpbnRlcnZhbCI6ImRheSIsInBlcmlvZGljaXR5IjoxLCJ0aW1lVW5pdCI6bnVsbCwiY2FuZGxlV2lkdGgiOjYzLjA1NTU1NTU1NTU1NTU2LCJmbGlwcGVkIjpmYWxzZSwidm9sdW1lVW5kZXJsYXkiOnRydWUsImFkaiI6dHJ1ZSwiY3Jvc3NoYWlyIjp0cnVlLCJjaGFyd

Zacks. (2021). Zacks. Retrieved from https://www.zacks.com/stock/research/MTCH/company-reports

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