THE MOTLEY FOOL - July 19 - Enthusiasm for Bumble waned after its IPO but, Bumble has been growing faster than Match. Revenue rose 36% to $489m in 2019, then +19% to $582m in 2020. Bumble had slower growth in paid users during the pandemic, but expects revenue to grow ~25% in 2021. Meanwhile, Match's revenue rose 19% to $2.1B in 2019 and +17% to $2.4B in 2020. Analysts expect revenue to increase 22% this year. Bumble and Match trade at 12x and 15x sales. Bumble's+Badoo's paying users rose 22% to 2.5m in 2020, and +30% YOY to 2.8m in Q1 2021. Bumble had 1.35m users, while Badoo had 1.45m. Bumble generates 2x the ARPU of Badoo. Match's paid subs rose 12% to 10.9m in 2020, then +12% YOY to 11.1m in Q1 2021. The global online dating market could grow at a CAGR of 8.3% between 2019 and 2025, according to Allied Market Research.
Conclusion: Bumble could monetize Bumble BFF and Bumble Bizz and become a social network. Bumble is highly unlikely to be worth more than Match in ten years but, it could still be a promising growth stock to own for the next decade.
Mark Brooks: If you're going to invest in dating and social stocks, Bumble should be in the mix. I've learned not to underestimate Bumble. This company is going places! FULL DISCLOSURE: I own Match Group stock...and not Bumble, but will fix this omission this week!