Dating app Bumble is preparing for its initial public offering, but it just warned investors the implementation of new privacy safeguards by Apple (NASDAQ:AAPL) could impact its bottom line.
Advertisers might not be able to reach app users, limiting their ability to market to them, which might make Bumble a less attractive outlet.
The right to be left alone
Apple announced last year it was implementing in iOS 14 a new protocol that required users to opt in before an app could access their their identifier for advertisers (IDFA). The IDFA is an alphanumeric string assigned to Apple devices that advertisers use to identify app users so they can deliver personalized and targeted advertising.
Alphabet uses similar tracking technology, called Android advertising ID, or AAID, and industry experts expect the tech stock will soon be pressured to make similar changes to its privacy policies.
Bumble says at most 20% of its app's users will opt in to have advertisers track them all over the internet if given the choice. It warns, "As a consequence, the ability of advertisers to accurately target and measure their advertising campaigns at the user level may become significantly limited and app developers may experience increased cost per registration."
However, Bumble also notes that while it does generate revenue from advertisers, most of its revenue comes from recurring subscriptions and in-app purchases to access premium features. Bumble reports having over 2 million paying users.