Category: Match Group

Match Group And Investing In Tinder

Posted on May 3, 2017

Match group slideSEEKING ALPHA – May 2 – Match Group is an underappreciated growth story with a market capitalization of $5.1B and operating income of $306M last year. Based on a 20X multiple of 2017 operating earnings (~$400M), Match Group has 50%+ upside. Out of all the brands that Match owns, Tinder stands out the most. Tinder grew its PMC (Paying Member Count) 119% in 2016, to ~1.8M people. This growth isn't showing any signs of stopping, Tinder's PMC grew 18% quarter over quarter from Q3 to Q4 (1.386M to 1.631M). Although Match Group has 278.3M total shares outstanding, its float is much smaller. The company was spun out of IAC in late 2015, and its original parent still owns ~80% of the shares outstanding.The biggest drag on Match's valuation has been the company's debt-load. At the end of 2016, Match still had $1.2B in debt, with only $254M of cash. However, this leverage ratio could change quickly. Match paid down $40M in debt in Q4, and has been simultaneously boosting its cash position. As earnings and cash-flow continue to grow, Match will quickly begin paying off its debt-load, and the company's earnings multiple will expand, making shares very attractive at today's price of $18.50.

by Galileo Russell
See full article at Seeking Alpha

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OKCupid Is Hit With A Suit

Posted on April 24, 2017

Okcupid mobile1COOK COUNTY RECORD – Apr 21 – A man who paid premiums to access A-list dating prospects on OKCupid, only to find out most were dead ends, is suing Match Group in a $5M class action complaint, accusing the company of setting him and other users up to get stiffed. He said Match Group, charges its premiums ($10 – $20/month), to connect with "A-List" OkCupid customers who "liked" a user's profile. After coughing up the cash, the users "routinely learn that most of the users who like them have inactive accounts".

by Scott Holland
See full article at Cook County Record

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$314 Million In Sales Expected For Match Group In Q1

Posted on April 18, 2017

Matchgroup logo simpleTHE CERBAT GEM – Apr 16 – Wall Street analysts expect that Match Group will post sales of $314M for Q1. Match Group posted sales of $285M in the same quarter last year, which suggests a positive YOY growth rate of 10%. Match Group is expected to announce its next earnings results on May 2nd.

by Scott Moore
See full article at The Cerbat Gem

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How A Rescue Dog Helped Match.com’s CEO Avoid A $430K Tax Bill

Posted on April 12, 2017

Greg-blatt-thelmaDALLAS NEWS – Apr 11 – Match Group chairman Gregory Blatt became an official Texan in 2009 thanks to his elderly dog, according to a recent ruling by a New York judge. Blatt moved to Texas from New York in 2009 when he became CEO of Match. New York tax authorities were not convinced of Blatt's new Dallas fandom since he kept his New York condo. They audited him in 2011 and determined that he owed $430,065 in personal income tax plus interest and penalties for 2009 and 2010. However, administrative law judge Donna M. Gardiner found that Blatt fully embraced Dallas as his new home – citing his decision to move his large elderly dog to Texas' hot climate, among other factors. Blatt moved back to New York in 2011 after he was promoted to become the CEO of Match's parent company, IAC.

by Dennis Jansen
See full article at Dallas News

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Match.com-Backed Zhenai Plans A-Share Listing Via Reverse Merger

Posted on February 18, 2017

Zhenai screenshot 2017CHINAMONEY NETWORK – Feb 17 – Zhenai, a Chinese online dating site 20% owned by Match.com, is planning a back-door listing via a reverse merger with Shenzhen-listed DEA General Aviation Holding Co., Ltd. DEA, an aviation parts and electronics maker, said it plans to acquire 100% of Zhenai via new share issuance. The deal is still in the process of being finalized and the two parties have not signed a formal agreement, according to the filing. Zhenai claims ~100M registered users. The company also registered $145M in revenues and $14M in net profits in 2016.

by Li Dongmei
See full article at ChinaMoney Network

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This post also appears on InternetDatingInvestments.

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How To Score Funding

Posted on February 16, 2017

Pic-raise-capitalTECHCITYNEWS – Feb 14 – Online dating is a lucrative industry – recent research estimates that dating apps contribute a £1B to the UK economy every year. VCs are eyeing the sector. Matthew Bradley, an investor at early stage London-based VC fund Forward Partners, is just one of many. "It's a very competitive market, though there's a gorilla in the form of Match Group." Well-funded companies in the space include Happn ($22M), Hinge ($12M) and Once ($9.1M), but figuring out what investors really look for in a dating-tech company is not always entirely obvious. "A viable revenue model would be a good start," Bradley said. But monetising dating isn't easy. On top of that, dating apps don't always make good advertising platforms. "For most dating tech companies the only way to pay back investors seems to be to reach a critical scale of users and be acquired by the Match Group. That's a high risk game," Bradley said. "Well tested, well funded propositions run by super-clever people will always make a mark," he added. Dating apps throw off a lot of data with swipes, pictures and interactions. "There's also plenty of social data to get your teeth into. I don't doubt that adding intelligence to data-rich companies will improve products," he explained.

by Yessi Bello Perez
The full article was originally published at TechCityNews, but is no longer available.

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Biometrics, Real-time Data Poised To Change Dating

Posted on February 14, 2017

Couple picSF CHRONICLE – Feb 13 – Innovators like to envision a future in which technology will streamline, simplify and democratize love in its many phases – from dating to sex to marriage and even heartbreak. Virtual reality and apps can be used to simulate sex and intimacy. Facebook last year introduced a "take a break" function that allows people getting over romantic relationships to control how much they do or don't see of their ex. Others online dating services uses biometrics and science to match people. eHarmony CEO Grant Langston said the company will incorporate more advanced scientific tools. "I can see a day where people take a swab of their cheek to get a DNA-level analysis of what they would be attracted to," he said. Some dating sites/apps are getting people to put down their devices and meet in person. "You won't get a sense of that real chemistry until you're meeting face-to-face," said Mandy Ginsberg, CEO of the Match Group. Lesbian dating app Her started hosting in-person events last year.

by Marissa Lang & Dominic Fracassa
See full article at SF Chronicle

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Global Online Dating Growth Potential Is Tremendous

Posted on February 13, 2017

Match meetme momo comparison graphSEEKING ALPHA – Feb 10 – The number of singles looking for love online in Europe and North America is expected to grow to 670M in the next 2 years. Global growth potential is tremendous. According to Marketwatch, in the U.S. alone, the online dating market is worth ~$2.5B, and is forecast to grow to $3.2B in 2020. The positives of investing in this sector are clear: it will grow, it caters to a need rather than a want, and it simplifies one of the most basic human needs: love. On the negative side, the industry is dominated by Match. This very domination, and the fact that only 1% of the 8k new dating apps created every year are even marginally successful, means that taking a position in a smaller stock in the online dating market is extremely risky.

See full article at SeekingAlpha

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Why Match Group Was Right To Dump Princeton Review

Posted on February 9, 2017

Princeton review logoTHE MOTLEY FOOL – Feb 8 – Match has entered into an agreement to sell Princeton Review to ST Unitas, a global education technology company, for an undisclosed amount. The deal is expected to close by June. Princeton Review offers test-prep services and a guide to colleges. The marriage between the dating and non-dating services left many investors scratching their heads. Princeton Review never contributed more than a small amount of revenue to the overall company. Match CEO Greg Blatt summed up the decision by saying, "It has become increasingly clear to us that its differences from our core dating businesses meaningfully exceed its similarities." Companies often shutter struggling business to focus on core operations. The amount of the sale was not disclosed, but Princeton Review's revenue in 2016 was $104M.

by Jeremy Bowman
See full article at The Motley Fool

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A Sneak Peek Inside Match Group’s New HQ

Posted on February 9, 2017

Match new HQ picDMAGAZINE – Feb 9 – The new three-floor office includes a video game room, living room, and wine and beer on tap. The company moved into its new building in Dallas in September. It outgrew its previous headquarters in University Park, where it spent 10 years. The open-office concept has 341 sitting and standing desks. Some of the more unique perks at Match include car wash services, an in-house masseuse, dry-cleaning services, and weekly yoga classes.

by Danielle Abril
See full article at DMagazine

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