Looking For Love In All The Wrong Places


I have personally sworn off the dating apps – Tinder, Bumble and Hinge – but at the end of the day that is where young people nowadays go to get a date and meet someone. And while the stocks have been left for dead, I think there is some real value there.

Let’s start with Match (MTCH) – owner of Tinder and Hinge. While Tinder’s paying users has plateaued below 11 million, its relationship oriented app Hinge is growing rapidly. Hinge revenue was +44% in 3Q23 from a year ago and now has 1.3 million paying users. MTCH gets almost $27/month on average from each of them.

Bumble – also a relationship oriented app in which the woman has to send the first message – reported 3Q23 earnings Tuesday afternoon. Bumble paying users were +25% to 2.6 million and Bumble gets $28.38 per month on average from each of them.

Both companies are profitable on Adjusted Operating Income or Adjusted EBITDA. In other words, while the stocks have been decimated the businesses continue to grow. I nibbled on some shares in each this morning. It may be early but I think these stocks will be long term winners from these levels.

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