As tinder numbers rise, so does Match’s share price
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As tinder numbers rise, so does Match’s share price

Online dating giant Match Group reported quarterly earnings last week, demonstrating that the main driver of the company’s growth remains casual dating app Tinder. Tinder, which is geared to “hook-up” culture, and popular among time-lite millennials who aren’t looking for serious relationships, is worth around two-thirds of Match’s overall valuation… so when Tinder does well, so does Match. This quarter, investors liked what they saw – and they sent the share price up by 8% on the back of it!

Match Group’s share price has risen by 60% so far this year

13 05 tinder

Source: Yahoo Finance

Tinder saw an increase in its subscriber numbers of 1.3 million, bringing the total to 4.7 million. According to the company, this uptake was the result of popular marketing campaigns over Tinder’s signature functionality “swipe left, and swipe right”.

Overall subscribers across Match’s entire portfolio of dating services rose 16% year on year to 8.6 million. Revenue rose by a similar percentage, up 14% against the year-ago quarter, to $464.6 million. That last figure also narrowly beat out analysts’ expectations for $463.7 million in revenue. On earnings, however, Match saw a much bigger jump: up 42% from the same time last year to 42c per share.

On the company’s earnings call, CEO Mandy Ginsberg said that Tinder was “driving very strong results” and that the company was pivoting its focus towards the Asia Pacific region in an effort to capture more growth:

“There are 600 million singles globally, and roughly half are in the region on this slide that we are defining as APAC. This is four times as many singles, and this region compared to North America where half of our revenue is today. We are positioning the company to capture the opportunity we see across this region. A decade ago, this part of the world was not showing much traction in our category, and then as a result, we put very few resources focused on the region and we lacked local expertise. Then, things started to change significantly in 2014.”

Disclosure

Dominion holds Match Group in its Global Trends Ecommerce Fund.


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