You should be related to Match Group more than you think. If you are using Tinder, OK Cupid or Hinge, you are using one of Match Group’s services. The group is the parent company of some of the most popular dating apps on the market. It released its 2019 Q2 results yesterday and here are a few notable points that stood out for me
- In the earning call, the CEO of Match Group cited a study by Prof. Michael Rosenfeld at Stanford, saying that nearly 40% of all relationships nowadays start online
- Match Group invested in Harmonica, a Tinder-like app that services the Muslim community that makes up 24% of the world’s population
- Subscriber base grew by 39% on a YoY basis
In the first two quarters, Match Group’s revenue reached $950 million. I have to admit that it is surprising since I didn’t think a subscription on dating apps and other add-on features could generate almost $1 billion in 6 months. Average Revenue Per User stays flat, which can be a positive sign as the company doesn’t grow user base by significant discount.
Compared to 2018 Q2, revenue increased by 18% while operating income grew by 15%. International revenue grew at a higher clip than domestic’s. Margin stays relatively flat at a healthy 35%.
Overall, I think that looks like a good quarter for Match. The consumer trend is there to help them and the company seems to be in good shape.
Minh Quang Duong 