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$MTCH Q4 Results
Match Group reported its 4th quarter results for 2022 last night. A little underwhelming but here are some of the numbers:
  • FY Free Cash Flow $477 million
  • FY Free Cash Flow (excluding litigation settlement) $918 million
  • Tinder FY Direct Revenue grew 16% in CC (+10% payers, and +6% revenue per payer in CC)
  • Hinge Direct Revenue grew 44%
  • Adjusted operating income was $1.1B, +6% YoY (~70% FCF conversion historically)

Overall thoughts: This was obviously a difficult and transformational year for the company. Bernard Kim stepped in as CEO and has been busy assembling the team around that he wants.
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As for their portfolio, Hinge continues to be a bright spot. They are just now launching across Europe and seeing remarkable success. They're expecting $400 million in revenue from Hinge in 2023, which I imagine will accelerate in 2024 as they rollout monetization efforts in their new markets.

Tinder product updates have been poor and slow, and yet still the business continues to grow its payers and revenue per payer in constant currency. With BK acting as CEO of Tinder for the time being, they should be in better shape this year as they execute on the product roadmap they laid out in the shareholder letter.

All in all, if you exclude foreign exchange headwinds, this whole year looks drastically better. Dollar appreciation looks to be reverting somewhat against most currencies, so I imagine constant currency adjustments could even serve as a tailwind throughout 2023. I expect Match will generate ~$1 billion in annual free cash flow within the next 1 to 2 years and inch closer to $2 billion in the not too distant future. At it's ~$17B enterprise value, I'm comfortable continuing to own this.

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