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Match Group (MTCH) Expands Subscription Plan to Select Users
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Match Group (MTCH - Free Report) expanded its Tinder Select subscription plan offering for selected users.
Notably, Tinder Select, an elite subscription tier priced at $499 per month, offers exclusive search and matching features to less than 1% of highly active users.
Further, it offers users perks like access to "most sought after profiles," direct messaging, early access to new features, advertisement-free browsing, and a badge announcing their SELECT status.
To join the new tier of online dating, daters must first apply, meet strict criteria, and have a profile with listed interests, four pictures, a 15-character bio, and stated relationship goals.
Match Group is expected to gain solid traction across millennials and Gen Z users on the back of its latest move.
Apart from the latest launch, Tinder launched a new suite of profile and discovery features like Profile Prompts, Profile Quiz, Basic Info Tags, Rizz-first Redesign and Dark Mode features, catering to the modern and diverse dating needs of the Gen Z generation.
Further, Tinder partnered with HelloFresh to offer an exclusive Date Night Delights recipe series and a limited-edition collection of Forking Seasonings to help new couples create deeper connections in the kitchen, aiming to make their first shared meals unforgettable.
Additionally, Match Group announced the re-launch of Desk Mode, a feature from Tinder that lets users swipe through Tinder from their desktop, presumably at the office and allows them to quickly hide their activities.
All the above-mentioned endeavors bode well for Match Group’s increasing efforts to bolster Tinder’s performance, which is the major revenue source for Match Group.
In third-quarter 2023, direct revenues from Tinder were up 11% year over year to $509 million. Tinder’s revenue per person (RPP) rose 18% year over year to $16.28, driven by pricing optimizations and new weekly subscription packages.
For fourth-quarter, 2023, Match Group expects Tinder revenues to grow 11%, driven by higher year-over-year growth in RPP. The Zacks Consensus Estimate is pegged at $495.56 million.
Growth Prospects & Competitive Scenario
Match Group’s growing Tinder efforts position it well to capitalize on the growing adoption of online dating apps. This, in turn, will solidify its position as an industry leader in the global online dating market.
Per a Grand View Research report, the global online dating apps market is expected to witness a compound annual growth rate (CAGR) of 7.6% from 2023 to 2030.
Per Statista report, the online dating market is expected to reach $3.46 billion by 2028, exhibiting a CAGR of 3.03% between 2023 and 2028.
We believe that the company’s growing prospects in these promising markets will help it win investors’ confidence in the days ahead.
However, Tinder is facing stiff competition from big and small players like Bumble (BMBL - Free Report) , which is also making every effort to capitalize on the growth prospects in the online dating space. This is acting as a major headwind for the company.
MTCH has lost 17.6% on a year-to-date basis against the industry’s growth of 56.4%.
Earlier this year, Bumble acquired Official, an app designed to enhance couples' relationships through mood check-ins and date planning, as part of its strategy to strengthen the love ecosystem.
Zacks Rank & Key Picks
Currently, Match Group carries a Zacks Rank #3 (Hold).
Image: Bigstock
Match Group (MTCH) Expands Subscription Plan to Select Users
Match Group (MTCH - Free Report) expanded its Tinder Select subscription plan offering for selected users.
Notably, Tinder Select, an elite subscription tier priced at $499 per month, offers exclusive search and matching features to less than 1% of highly active users.
Further, it offers users perks like access to "most sought after profiles," direct messaging, early access to new features, advertisement-free browsing, and a badge announcing their SELECT status.
To join the new tier of online dating, daters must first apply, meet strict criteria, and have a profile with listed interests, four pictures, a 15-character bio, and stated relationship goals.
Match Group is expected to gain solid traction across millennials and Gen Z users on the back of its latest move.
Match Group Inc. Price and Consensus
Match Group Inc. price-consensus-chart | Match Group Inc. Quote
Expanding Tinder Offerings
Apart from the latest launch, Tinder launched a new suite of profile and discovery features like Profile Prompts, Profile Quiz, Basic Info Tags, Rizz-first Redesign and Dark Mode features, catering to the modern and diverse dating needs of the Gen Z generation.
Further, Tinder partnered with HelloFresh to offer an exclusive Date Night Delights recipe series and a limited-edition collection of Forking Seasonings to help new couples create deeper connections in the kitchen, aiming to make their first shared meals unforgettable.
Additionally, Match Group announced the re-launch of Desk Mode, a feature from Tinder that lets users swipe through Tinder from their desktop, presumably at the office and allows them to quickly hide their activities.
All the above-mentioned endeavors bode well for Match Group’s increasing efforts to bolster Tinder’s performance, which is the major revenue source for Match Group.
In third-quarter 2023, direct revenues from Tinder were up 11% year over year to $509 million. Tinder’s revenue per person (RPP) rose 18% year over year to $16.28, driven by pricing optimizations and new weekly subscription packages.
For fourth-quarter, 2023, Match Group expects Tinder revenues to grow 11%, driven by higher year-over-year growth in RPP. The Zacks Consensus Estimate is pegged at $495.56 million.
Growth Prospects & Competitive Scenario
Match Group’s growing Tinder efforts position it well to capitalize on the growing adoption of online dating apps. This, in turn, will solidify its position as an industry leader in the global online dating market.
Per a Grand View Research report, the global online dating apps market is expected to witness a compound annual growth rate (CAGR) of 7.6% from 2023 to 2030.
Per Statista report, the online dating market is expected to reach $3.46 billion by 2028, exhibiting a CAGR of 3.03% between 2023 and 2028.
We believe that the company’s growing prospects in these promising markets will help it win investors’ confidence in the days ahead.
However, Tinder is facing stiff competition from big and small players like Bumble (BMBL - Free Report) , which is also making every effort to capitalize on the growth prospects in the online dating space. This is acting as a major headwind for the company.
MTCH has lost 17.6% on a year-to-date basis against the industry’s growth of 56.4%.
Earlier this year, Bumble acquired Official, an app designed to enhance couples' relationships through mood check-ins and date planning, as part of its strategy to strengthen the love ecosystem.
Zacks Rank & Key Picks
Currently, Match Group carries a Zacks Rank #3 (Hold).
Investors interested in the broader retail-wholesale sector can consider some better-ranked stocks like Amazon (AMZN - Free Report) and Expedia Group (EXPE - Free Report) . While AMZN currently sports a Zacks Rank #1 (Strong Buy), EXPE carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amazon’s shares have gained 81.1% in the year-to-date period. The long-term earnings growth rate for AMZN is currently estimated at 29.40%.
Expedia Group’s shares have gained 69.5% in the year-to-date period. EXPE’s long-term earnings growth rate is currently projected at 25.31%.