Match continues outperformance with Tinder as jewel in its crown
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Match continues outperformance with Tinder as jewel in its crown

Online romance expert Match Group, the company behind digital dating services like Match.com, PlentyOfFish, and Tinder, reported earnings last week that beat the Street on pretty much every metric. As has previously been the case, the company’s ‘casual dating’ app Tinder continues to outperform both its competitors and the rest of Match Group, growing at an incredible pace. As a result of this positive news, investors sent the company’s share price up by 11% in extended trading.

Match group’s share price has appreciated by an incredible 33% so far this year!

 graph 11 match

Source: Yahoo Finance

Here are the numbers: for the group as a whole, revenue in the three-month period ending December 31 grew 21% year on year to $457 million. That’s an easy beat against analysts’ expectations of a $449 million in total revenue. Match also managed to beat expectations in regards to earnings, delivering 39 cents per share – a slight beat against analysts’ predictions of 38 cents per share.

The company’s CEO, Mandy Ginsberg, described 2018 as “the best year in our history for shareholders” – no small feat when you consider that Match’s share price has increased three-fold since it went public in 2015. But then again, up almost 35% in just the first five weeks of 2019, there could be more good news in store for investors.

Tinder was, once more, a headline grabber in Match’s report. In the fourth quarter of 2018, the hook-up app saw 233,000 new subscribers, hitting a new highpoint of 4.35 million people on its platform. Spurred upwards by these new subscribers, as well as monetisation strategies centred on premium tiers, direct revenue at Tinder soared by 57% year on year.

However, Match also added the ‘anti-tinder’ to its stable of services last year. Hinge, a dating app popular amongst college-age people, focusses on more meaningful relationships. The company took a controlling stake earlier in the year, and completed the acquisition in the fourth quarter.

Growth in 2018 was driven by international markets, Ginsberg said. She noted that Match had started television advertising geared towards a variety of cultures, including Korean and Indian. There is more of this growth on the way, she added: 600 million single people are connected to the internet worldwide, and two thirds are yet to try online dating.

Disclosure

Dominion holds Match Group in its Global Trends Ecommerce Fund.


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