MARKETWATCH – Match Group shares edged up 5.5% to $50.48 following news that a higher priced ($50-$60) membership tier for its Hinge dating app is being tested. However, Match's stock price is down 57% over the last 12 months.
Category: Match Group
Epic and Match’s Antitrust Case Against Google Heads to Jury Trial
TECH CRUNCH – A date has been set for a trial by jury in a significant antitrust case against Google involving its alleged abuses of power in the Android app market. Fortnite maker Epic Games and Match Group have accused Google of unfairly leveraging its market dominance and harming competition through its Google Play Store terms and practices. The case will now proceed to a jury trial on Nov 6, 2023. Epic Games sued Apple and Google in 2020 when it introduced a direct payment option in Fortnite to its iOS and Android apps, prompting Apple and Google to boot the mobile game from their app stores. Match Group had also sued Google over its Play Store practices, accusing Google of charging developers "exorbitant fees." Google shot back, saying Match just wants to get out of paying for the services it provides the company as part of its platform.
Hawaya, Match Group-Owned Dating App for Muslims, Is Shutting Down
HAWAYA – Feb 15th is the last day for Hawaya, a Cairo-based dating app founded in April 2017 by four Egyptian entrepreneurs. Match Group acquired Hawaya in Oct 2019. Shutting down Hawaya is a part of Match Group's new strategy for 2023, focusing on growing brands.
Match Group to Offer in-app Tips on Avoiding Scams
TECH CRUNCH – Match Group is introducing in-app messages and email notifications to give users tips on preventing being scammed online throughout January. But Match said it would continue pushing these messages to users periodically. The in-app messages will include tips, common behaviors to watch out for, and suggestions such as ensuring matches have their profile picture verified, video chatting with them before meeting in person, and learning to recognize scammer red flags. In 2021, FTC reported that consumers lost $547M. The average reported loss in the U.S. was $186K in 2022, up from $121K in 2021.
Tinder Finally Wants to Define the Relationship
BLOOMBERG – Match Group was one of the worst performers on the S&P 500 last year, plunging ~70% as investors fretted that the app was losing its mojo. Downloads have declined since 2020, and paid user growth has slowed. Attracting and retaining Gen Z and women is a top priority for Match's new CEO Bernard Kim, who ousted Tinder's management team after taking over in June. Young people are increasingly turning to apps that offer a more progressive dating experience and emphasize more serious relationships. Tinder’s global monthly active users have been flat since the end of 2019, whereas Bumble and Hinge's users have respectively increased 87% and 140% in the same period, according to Sensor Tower data. Tinder still has room to grow. Tinder needs to do a better job attracting Gen Z and women. Male users are thought to significantly outnumber women on Tinder, which doesn't disclose the ratio. Making women feel safer and more comfortable is part of Kim's new strategy.
Match Group Stock Gained 1% in One Week
Mandy Ginsberg and Shar Dubey Were Match Group CEOs and Best Friends
Match Group: From Dominant Leader to Turnaround Play
INVESTING.COM – Match stock has plunged 70% so far this year. Decelerating growth has led to a soft outlook for Q4. New management and new efforts need to work for the stock to reverse. In a post-pandemic environment, there's little reason to believe that the steady, long-term rise of online dating is going to end, yet, MTCH closed Tuesday at its lowest level in ~4 years. In 2021, MTCH traded ~70x expected adjusted EPS. Unsustainable. Revenue increased 25% in 2021, and 17% in 2020. Adjusted EBITDA was ~36% of revenue. Match expects revenue and adjusted operating income to decline YOY. The strong dollar is having an impact. (Bumble expects revenue growth of 22% to 25% in Q4). Wall Street remains behind Match: The average price target implies a ~60% upside.
by Vince Martin
See full article at Investing.com
Mark Brooks: How well is Match positioned for growth and innovation? Please comment below.
Apple Allowing Sideloading Has Some Benefits for Dating
SEEKING ALPHA – If Apple were to allow third-party app stores on iPhones and iPads, a process known as sideloading, it would only provide a "relatively immaterial" benefit to companies such as Bumble and Match Group, as Samsung's Galaxy App Store only has Tinder and no other major dating apps. "We estimate that even if MTCH/BMBL are able to get 3% sideloading penetration in the EU, it would only be a ~$2M/~1M benefit to FY23 EBITDA," said the analysts at Morgan Stanley. Shares of Bumble and Match Group soared initially after the report that Apple is considering allowing third-party app stores but eventually closed the Tuesday trading session with more modest gains.
by Chris Ciaccia
See full article at Seeking Alpha
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Match Group Hit With Biometric Data Class Action
LAW360 – An Illinois federal court will hear a proposed class action against Match Group and Tinder that alleges that the online dating companies violated the state's Biometric Information Privacy Act by illegally storing biometric facial scans of Tinder app users without their consent. Tinder allows users to earn a "blue checkmark" on their profile, meaning Tinder has "verified" their profiles under its Liveness Check and 3d Face Authentication process. The lawsuit accuses Tinder of failing to first secure written consent from Illinois users and provide certain notices to those people concerning how the facial scans will be used, stored, shared and ultimately destroyed, as allegedly required by the Illinois BIPA law.