Bumble: dating app is no Match for Tinder

Online dating app users are more interested in romance than friendship. Bumble tried to differentiate itself from a crowded market with Bumble BFF, a way to make new friends. But it does not appear in the company’s revenue statement.

Happily, those seeking love are increasingly willing to pay. Bumble makes most of its money from premium subscriptions. In the first three months of the year, revenue rose nearly a quarter compared to the previous year to $ 211 million while operating costs fell by almost a third.

Bumble was created with the goal of making better dating apps for women. Poor experiences elsewhere work in her favor. Within about 18 months, paying members have grown from 1.1 million to 3 million. But it remains much smaller than its rival Tinder. Bumble was downloaded 100,000 times from Apple’s App Store and Google Play in April, according to Sensor Tower. Tinder Downloaded 3 minutes times.

The size of Tinder Match’s parent company casts a shadow over the sector. Its growth and 31 percent ebitda margin set an industry standard. Bumblebee’s margins are slowly catching up. But he has less than half of her opponent’s crowd. Attempts to increase users through acquisition include the latest acquisition of the bizarre French dating app Fruitz, which assigns fruit to different types of relationships. But there is nothing for sale that can match Tinder’s infamous.

Still, there’s reason to think Bumble’s $ 3.5 billion organizational value may climb.

The Grindr gay dating app plans to join the markets through a Space deal Which will value the company at $ 2.1 billion, including debt. Although Grinder has 11 million users, it has only 723,000 subscribers. Thus, the deal estimates each user pays $ 2,900. Using the same index, Bumble’s 3 million paying users could give the company an enterprise value of $ 8.7 billion.

The difference is that Grindr’s revenue is rising faster – a 30% increase last year. It spends little on marketing, relying on users to spread the word. Grindr is also better known in short-term flushes than in relationships. This may be something that dating app users want even more than romance.

Bumble: dating app is no Match for Tinder Source link Bumble: dating app is no Match for Tinder

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