MusiCali brought this to the board earlier today and I was just getting ready to look at it based on a poster on the SA Options board (I believe it was J Sargent).
Match Group is an on-line dating company with 45 different products (websites/apps) most notably Match.com and even more importantly, Tinder. Tinder seems to be driving all of the growth and is now around 40% of revenues. I’ll note the revenue growth isn’t stellar, but it is just beginning to pick up.
Revenues this quarter came in at $379M growing 28%. Not too heady around these parts, but that was a big tick up in growth. Prior three quarters from most recent: 19%, 12%, 15%.
This was a Peter Lynch type of consideration in that I only wanted to look at the stock because I know about Tinder (the online dating/hook up app). It is definitely popular. How popular and how long lasting it will be is another story. If anyone watches the HBO series Shameless, you may know of it. If you don’t watch Shameless, consider that if nothing else in this post.
The company is profitable, but earnings have been slowing and this is attributed to “In-app purchase fees” which you can read as, “payments to Apple or Google.”
Whether Match Group is successful seems to hinge on Tinder. They certainly have other competitors in the market place and others that are likely to pop up.
Here’s the deal. People will always want options to meet the opposite sex. Tinder seems to be offering a way to do that and monetize it. If it becomes the gold standard, then it could be an incredible investment. That is a big if, though!
Any other takers on this subject?