Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of dating products available globally.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 Mo) | Market Value (m) | Dividend Yield | Float % | Target Price | Consensus Rating (5 strong buy – 1 strong sell) |
Next Earnings Announcement |
| 87.56-159.53 | 7,740 | 40,634 | 0% | 93.7% | 140.70 | 3.82 | 05/02/2021 |
Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of dating products available globally. Its portfolio of brands includes Tinder, Match, Meetic, OkCupid, Hinge, Pairs, PlentyOfFish, and OurTime, as well as a number of other brands used by consumers worldwide in over 40 languages, with an estimated 300 million users globally by 2023. Prior to June 2020 Match Group was a subsidiary of InterActiveCorp (IAC) which operates as a holding company investing in subsidiaries. The spinoff resulted in Match Group becoming a stand-alone entity with greater flexibility for capital allocation.
The well-known dating app Tinder, with its patented Swipe feature, accounts for 56% of Match’s revenue and the key to help driving subscribers. Tinder debut live-video dating which during the COVID-19 pandemic could see subscribers increase nearly 30% according to estimates by Bloomberg. With an estimated 66% of downloads for dating apps in April 2020 emphasizing its importance and remains the number one downloaded and top-grossing dating application worldwide. For Q3 2020, total revenue rose +18% over the prior-year quarter to US$640 million with average subscribers up +12% to 10.8 million. This growth was powered by growth of 16% in Tinder users and 15% increase in Tinder revenue. Sales growth of 18% is also forecast for the 4th quarter by management, again driven by Tinder.
For the year ending December 2020, revenue is forecast to rise +16% to US$2,388m from US$2,051 and further increase +17% in 2021 to US$2,793. Adjusted earnings per share is forecast to drop -45% to US$0.94 before jumping +260% in 2021 to US$2.46. Based on these estimates the stock trades on forward P/E ratios of 136.2 and 52.2 respectively, significant premiums to the peer group averages of 37.1 and 25.0.
The average target price of analysts covering the stock is $140.70 with 45% of analysts rating the stock as a buy, compared to 5% as a sell and 50% as a hold.
