MTCH

Match Group Inc

TMT, Consumer


Presented:12/17/2019
Price:$71.04
Cap:$19.89B
Current Price:$38.62
Cap:$9.96B

Presented

Date12/17/2019
Price$71.04
Market Cap$19.89B
Ent Value$22.41B
P/E Ratio40.58x
Book Value$0.81
Div Yield0%
Shares O/S279.97M
Ave Daily Vol2,147,607
Short Int65.09%

Current

Price$38.62
Market Cap$9.96B
Match Group, Inc. engages in providing dating products. Its brands include: Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. It operates through the following segments: Dating and Non-Dating. The Dating segment provides dating products. The Non-Dating segment offers a variety of education services including test preparation, academic tutoring, and college counseling services. The company was founded on February 12, 2009 and is headquartered in Dallas, TX.

Publicly traded companies mentioned herein: Blackstone Group Inc/The, IAC/InterActiveCorp (IAC), Match Group Inc (MTCH)

Highlights

The presenter is long shares of Match Group Inc (MTCH), the leader in online dating with ~70% share of the global online dating revenue. In his opinion, this is a growth industry, as the stigma around online dating is fading. 60% – 70% of new relationships in the US are now initiated online, and the rest of the world is also trending in that direction. His position is really a bet on Tinder, a MTCH asset, continuing to grow and effectively monetizing its user base. As this plays out, he estimates a 2022 revenue base of $3B with 60% EBITDA margins, resulting in $1.2B in earnings (~$4 EPS). Using MTCH’s historical ~30x P/E multiple (it currently trades at ~37x Street forward estimates), he has a price target of ~$120 per share in the next two years, representing ~70% upside from the current ~$70 share price. 

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Idea Discussion

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