MTCH - Embedded Expectations Analysis - 2020 09 29
Match Group, Inc. (MTCH:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 41.0x Uniform P/E. At these levels, markets have bullish expectations for the firm, but management may have concerns about their Hinge app, marketing in India, and EBITDA marginSpecifically, management may have concerns about possible metrics degradation in Japan, the potential of the Platinum subscription tier at Tinder, and the sustainability of Hinge app downloads. In addition, they may lack confidence in their ability to effectively market their services in India, expand into new areas, and sustain direct revenue. Furthermore, they may be overstating the compatibility of features from their other platforms on the Hinge app, and the strength of their product road map for the back half of the year. Finally, management may be concerned about the probable increase in cash paid for interest, and they may lack confidence in their ability to meet their target EBITDA margin
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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