Market Overview

Tinder Lights A Fire Under Match Group, Now Accounts For Half Of Paid Subscribers

Tinder Lights A Fire Under Match Group, Now Accounts For Half Of Paid Subscribers

Match Group Inc (NASDAQ: MTCH) shares are rallying after the parent company of Tinder posted a second-quarter earnings and sales beat Tuesday. 

The Analyst 

Jefferies analyst Brent Thill maintained a Buy rating on Match with a $50 price target.

The Thesis

Even with Facebook, Inc. (NASDAQ: FB)'s proposed new dating feature still on investor's minds, Thill predicts the long-term impact on Match will be limited.

With a top margin profile and consistent double-digit revenue growth, the analyst views Match as one of the most compelling mid-cap internet stocks.

Jefferies' 5 Takeaways

  • Tinder keeps growing. Revenue was up 136 percent year-over-year and subscriptions grew 81 percent. Tinder subscribers now account for nearly half of Match’s total paid subscribers at 3.8 million.
  • North American revenue growth has re-accelerated for four straight quarters. One in three dates now begin online, which is shaping up well for Match, but international remains an even bigger opportunity, with just 10 percent of global dates beginning online, Thill said. Tinder remains a top-ranked app in Australia, Canada, The Netherlands, Sweden and the U.K. 
  • Match's 42-percent Q2 EBITDA margin is the highest in its history. Consistent margin expansion has been an ongoing story for Match, the analyst said. 
  • Match is planning a significant marketing push for Hinge in the second half of 2018. The newly acquired dating site is differentiated from Tinder and recent field checks yielded positive feedback, Thill said. 
  • Match has a new revenue feature in Tinder Picks. “We view picks as an incremental revenue driver and a away to attract potential Gold Subs. We like that it has both a subscription (must be a Gold member) and an a la carte (can purchase additional Picks) aspect,” the analyst said. 

Price Action: 

Match Group shares were up 16.87 percent at $45.45 at the time of publication Wednesday. 

Related Links:

2 Pros Talk Facebook Earnings

Tinder Transformed Online Dating, But High Expectations Are Priced In, Says Wells Fargo

Photo courtesy of Tinder. 

Latest Ratings for MTCH

Feb 2021WedbushMaintainsNeutral
Feb 2021CitigroupMaintainsBuy
Feb 2021Deutsche BankMaintainsBuy

View More Analyst Ratings for MTCH
View the Latest Analyst Ratings


Related Articles (MTCH)

View Comments and Join the Discussion!

Posted-In: Brent Thill Dating AppsAnalyst Color Earnings News Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

WKHSRoth CapitalMaintains15.0
HCKTRoth CapitalMaintains22.0
ARECRoth CapitalInitiates Coverage On7.5
SLABWells FargoMaintains180.0
PENWells FargoMaintains310.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at