Match Beats Q1 Expectations; Announces Change in Leadership; Shares Remain Undervalued

Match reported strong first-quarter results as top and bottom lines came in ahead of the FactSet consensus estimates. While the war in Ukraine and further requirements imposed by Google Play will continue to affect revenue and margins, we expect users to continue to be attracted to Match’s vast portfolio of dating apps which will support the firm’s network effect, drive growth on the top line and create operating leverage for margin expansion. On the leadership front, CEO Shar Dubey is stepping down but will remain on the board and serve as an advisor. The firm chose Bernard Kim, President of Zynga, to take the spot at the end of this month. We remain confident that the firm will continue to execute well by launching innovative features for its apps, further strengthening its network effect.