Match: A Tinder Trade

Focus: TECHNOLOGY

Douglas Gerlach Image Douglas Gerlach President, ICLUBcentral, Inc.

Second quarter results for Match Group (MTCH) came in pretty much as expected and management maintained guidance for 2017 based on enthusiasm for a new Tinder feature—Tinder Gold, explains small cap expert Doug Gerlach, editor of Investor Advisory Service.


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Sales grew 12%, driven by 15% growth in the paid user base. Tinder continues to be the star, growing its paid user base by 86%.

Efforts to reinvigorate the match.com website are progressing as the company has enjoyed growth in four of the past five months.

Operating income grew 7%, held back by investments in selling efforts and an increase in employee compensation to convert Tinder options to those of Match.

Earnings per share from continuing operations grew 21% to $0.17, due to a significantly lower tax rate offset by a higher share count.


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Match guided for third quarter sales growth of 12%-16% and is confident of hitting its full year operating income growth target of 12%-18% due to the introduction of Tinder Gold, a new premium pricing plan that will be rolled out fully in the fourth quarter.

The company is getting a new CEO effective January 1, 2018. Mandy Ginsberg, long-time leader of match.com, will take over for Greg Blatt, who will run Tinder until a new leader is identified.

Mr. Blatt had approached Match a year earlier about stepping down but wanted to remain to grow Tinder. Management changes are always tricky, but Ms. Ginsberg certainly has the right experience. MTCH is a buy up to 19.5.

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