MTCH - Embedded Expectations Analysis - 2020 03 19
ï€ Match Group, Inc. (MTCH:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 33.6x Uniform P/E. Even at these levels, markets have bearish expectations for the firm, and management may be concerned about Tinder cancellations, leverage, and their investments in Asian marketsï€ Specifically, management may be concerned about increased Tinder cancellations following the new cancellation flows in IOS 13, the progress of their Noonlight integration and photo verification feature launch, and their anticipated leverage following the separation from IAC. Moreover, they may lack confidence in their ability to reach their 3x net leverage target through EBITDA growth and debt pay down, meet total revenue and Tinder growth expectations, and improve user trust. They may also be concerned about the launch of OKCupid in Asian markets and their ability to grow their Asia Pacific market share. Finally, they may be exaggerating the momentum of their non-Tinder brands, their ability to grow APRU, and the potential of PlentyOfFish live streaming
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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