Bumble continues rally after 63% IPO day surge

Shares of Bumble popped another 2% in pre-market trading on Friday. The stock was the fourth most trafficked ticker on Yahoo Finance as of 6:30 a.m. ET.

The gains follow a sizzling market debut for Bumble over at the Nasdaq on Thursday.

Bumble’s stock finished the session up 63.5% to $70.31, off from the opening price of $76 in early afternoon.

The company, which owns Bumble and Badoo, a dating-based social network, raised $2.15 billion after selling 50 million shares at $43 each, a boost from its plans to sell 45 million shares in the $37 to $39 range.

Bumble co-founder and CEO Whitney Wolfe Herd told Yahoo Finance Live the strong market response likely reflects the company’s ambitions to be more than a dating app.

Bumble was created in 2014 with the vision of encouraging women to make the first move. Bumble’s key differentiator is that women have to make the first move in heterosexual matches. Either person can initiate the conversation in same-sex connections.

While Bumble is primarily known as a destination for singles to find a romantic partner, it has since expanded into categories like networking (BIZZ) and finding friends to hang out with (BFF). The app has 42 million monthly active users and 2.4 million paying users across 150 countries.

Herd is a pioneer in the online dating space, having co-founded Tinder, owned by Match Group (MTCH), before her acrimonious departure in 2014. She sued the company for sexual harassment and discrimination claims, eventually settling for a reported $1 million.

Bumble and Badoo posted $488.9 million of revenue (35.8% year-over-year growth) and $85.8 million in profits in 2019. Herd says the pandemic has boosted the business, and the company logged $376.6 million and $40 million of revenue in the period from Jan. 29, 2020 to Sept. 30, 2020 and in the period from Jan, 1, 2020 to Jan. 28, 2020, respectively.