- Bumble is an online dating, friendship and career app
- It puts women in control of the conversation and first move match making
- There are 72 million millennials in the US, redefining relationships and match making
- These apps can be a convenient and fun way to meet people
- This is actually a profitable tech company, with a 2019 net profit of $68 million
My wife and I met on eHarmony a few years back. And thank goodness for this platform that offered an opportunity for a match and a beautiful relationship. We are now years away from the dating scene, but there is always a new generation coming of age and navigating the relationship game. Here comes Bumble, where you can find your “honey”. Their words, not mine.
Bumble was first founded to challenge the antiquated rules of dating. Now, Bumble empowers users to connect with confidence whether dating, networking, or meeting friends online. We’ve made it not only necessary but acceptable for women to make the first move, shaking up outdated gender norms. We prioritise kindness and respect, providing a safe online community for users to build new relationships.
Women in control
On Bumble, founded in 2014 by Whitney Herd, women initiate the first conversation for heterosexual matches. Bumble has a “freemium model,” which means users can join and match for free. It earns the bulk of its revenue from in-app purchases and different subscription offerings like Bumble Boost, which starts at $12.99 a week, and its upgraded Bumble Premium, which starts at $17.99 a week
The paid offerings let users do things like make their profile more prominent, see who’s liked their profile first. This is all stuff that plays off human desires for connection and desirability. It’s a similar model to rival apps Hinge and Tinder, where users join and use the core functions for free but can pay for further use. Bumble also makes some money from advertising and partnerships.
It Actually Will Turn A Profit
Unlike many “unicorn” tech stocks, Bumble makes money. The company still has an overall net loss, but that seems to be changing fast. Most investors like companies that eventually make money. Sometimes there can be a long ramp up to profitability, but not with Bumble.
The company has about 12.3 million monthly active users as of 2021. CEO Wolfe Herd said the company is focusing its efforts on converting more of its user base to those paid customers by reinvesting in future monetization features and product offering.
$7 Billion Valuation
Bumble has a $7 billion valuation compared to Match groups $45 million valuation. Of course there is lots of competition out there for Bumble, such as Tinder and Match Group, but the market is not a winner take all scenario. People have different personalities and are looking for different things in life. I remember years ago not finding what I was looking for until I went over to another platform that was geared towards people looking for long term and more substantial relationships.
Growth Stock According to Cramer
Jim Cramer from CNBC calls Bumble a growth stock. If your looking to invest in this space, Cramer suggests either Match or Bumble, but he thinks Bumble has more growth potential.
More Than Dating
The Bumble platform is now supporting and expanding into new areas. Bumble Bizz is supporting career opportunities and Bumble BFF is a friendship connection service for those looking to expand their circle of friends or just meet new people.