Match Earnings: Tinder and Hinge Remain Top-Line Growth Drivers; Others Await Turnaround

Match Group’s price strategy is generating returns in terms of revenue growth, which, combined with continuing cost control, created operating leverage and produced an impressive third quarter. Third-quarter results displayed continuing strength of the Tinder app and its brand and further adoption and increased monetization of the Hinge app. Fourth-quarter guidance was disappointing, albeit mainly due to currency headwinds and recently heightened geopolitical tensions. Match’s initial 2024 revenue growth outlook was in line with our assumption. After reducing our longer-term revenue projections and margin assumptions—as we expect the narrow-moat firm to market its apps more aggressively next year and beyond—we are lowering our fair value estimate to $65 per share from $70.