Hookup With MTCH


Tinder parent Match (MTCH) reported 1Q22 earnings after the close Tuesday. Revenue was +20% and Adjusted Operating Income +19% compared with a year ago. 2Q22 guidance for revenue of $810-$820 million and adjusted operating income of $285-$290 million might have been a bit light compared to analyst estimates but show no deep seated weakness in the business. Nevertheless, shares are -6% in the premarket from 52-week lows.

Tinder is still the leading dating app in the world with 10.7 million paying users. MTCH also owns up and coming relationship app Hinge – among other dating apps and websites in its portfolio. At around 20x my 2022 operating income estimate, MTCH now looks attractive – for a hookup.

Combined with my view that a 50 basis point hike is priced in, MTCH seems like a good way to play a potential bounce. Hookup with – but don’t marry – MTCH.

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