Match Earnings: Tinder and Hinge Network Effect Is Strengthening

After two consecutive quarters of declining revenue, Match Group returned to growth, driven by price increases in Tinder, further adoption of Hinge, and improvements in various features. The firm’s decision to not increase Tinder prices in non-U.S. markets was smart, given the higher price sensitivity in those areas. We expect further strengthening of user monetization to more than offset user decline, which we believe will likely return to growth for Tinder in 2024. We also expect the firm’s additional artificial intelligence-based features, such as more content creation tools, to further improve the user count on Tinder and its Match Group Asia apps. We are maintaining our $70 fair value estimate and believe the stock remains attractive.