Match Group Stock Climbs as Hinge Turns Profitable
Mike Berner, a stock market analyst at Seeking Alpha, has run a feature on Hinge, as the Match Group subsidiary turns profitable for the first time.
It was revealed last month that the dating app was on course to triple its revenue in 2020, as the online dating industry saw quick and sustained growth during the COVID-19 pandemic.
Recent estimates from Morgan Stanley indicate the Hinge has approximately six million active users with 400,000 premium paying subscribers. While this contributes to a relatively small share of Match Group’s overall revenue, it’s 20x growth since June 2018 is on a very similar trajectory to Tinder’s early development.
CEO Justin McLeod has promised to never run in-app advertising as means to boost profits. This is because that strategy would be contradictory to the product’s overall ‘Designed to be Deleted’ mantra.
Berner concluded his coverage by remaining neutral on Match Group stock, saying there are often opportunities to pick up shares in the online dating company for a discounted price.
Its valuation has gone up by just under 6% so far this week, reaching a new peak with a market cap of $32.7 billion.
Match Group will be publishing its financial results for the third quarter after the close of market trading on 4th November. An accompanying conference call to discuss the results and future plans with investors is scheduled for the following morning.
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