MTCH - Embedded Expectations Analysis - 2019 06 07
Match Group, Inc. (MTCH:USA) currently trades at historical highs relative toUAFRS-based (Uniform) Earnings, with a 34.9x Uniform P/E. At these levels, markets have somewhat optimistic expectations for the firm, but management may be concerned about marketing spending, their ability to penetrate Asian markets, and Tinder optimization.
Specifically, management may lack confidence in their ability to drive word-of-mouth advertising, continue to reduce marketing spend, and sustain subscriber growth, especially across Android users. Moreover, they may lack confidence in their ability to penetrate Asian markets, and may be concerned about their brand recognition, investments, and marketing and pricing strategies in these markets. Furthermore, they may be concerned about the progress of Tinder optimization and conversion initiatives, their marketing mix, and their ability to improve Tinder matching outcomes. Finally, they may be exaggerating Tinder's pricing upside, the benefits of Match's redesign, and the increase in baseline users following large marketing pushes.
Match Group is a provider of dating products available in over 40 languages to its users all over the world through applications and websites it owns and operates. The company operates a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, Pairs and Hinge, as well as a number other brands. Through its portfolio of brands, the company provides tailored products to meet the varying preferences of its users. All the company's products enable users to establish a profile and review other users' profiles without charge. Each product also provides additional features, some of which are free, and some of which require payment depending on the particular product.
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