💡 Match Group (NASDAQ:MTCH) posted solid Q2 2024 results, with revenue growing 4% year-over-year to $864 million. Tinder, its leading app, is stabilising after tough quarters, with revenue up 1%. Although modest, the company expects user growth to return by early 2025. Tinder remains crucial, contributing over 70% of profits. Management’s focus on improving user safety and trust, as well as AI-driven innovations, is already helping to reshape the platform for future success.
📈 Hinge is another bright spot, recording a 48% revenue increase year-over-year, with paying users up 24%. The app’s expansion, particularly in Europe, positions it to become a billion-dollar brand within a few years. Hinge’s rapid growth and product enhancements are driving strong user engagement, cementing it as a key asset in Match Group’s portfolio.
💰 In an efficiency drive, Match Group has exited its live-streaming business, allowing greater focus on core apps like Tinder and Hinge. This move is expected to improve profitability by 50 basis points in EBITDA by 2025. Additionally, the company has been actively repurchasing shares, spending $197 million on buybacks in Q2, showing confidence in long-term growth.
🔥 Despite these positive indicators, Match Group’s stock has remained flat in 2024, underperforming the market. However, with a P/E ratio of just 10x, it is viewed as undervalued. As Tinder stabilises and Hinge continues its upward trajectory, there’s strong potential for investors looking for long-term growth.
🚀 Match Group’s ongoing efforts to improve trust, including AI-driven photo verification, have already boosted brand perception, particularly among younger women. These changes, combined with cost-cutting measures, position the company for sustained growth, making it an attractive opportunity for savvy investors.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.