July 25, 2021

Dating sites: Match Group soars to the stock market thanks to its Tinder nugget

Match Group continues its flirtation with Wall Street. At mid-session Wednesday, the title of the global giant of dating sites and applications soared by 27%, propelling its capitalization to more than 26.5 billion dollars. Its historic peak. Since its IPO at the end of 2015, it has soared by nearly 780%!

A performance that Match owes to its nugget: Tinder. During the last quarter, the “app” attracted more than 500,000 new subscribers, and for the first time exceeded the mark of 5 million paying customers (up 38% over one year). Released in 2012 from one of Match’s in-house incubators, Tinder quickly established itself as the benchmark in the dating sector.

More fun, less engaging in terms of registration, the “app” has made a slew of competing offers out of date and has conquered the “Millennials”. Tinder subscribers now represent a large majority of those in the Match Group empire, which accounts for 9.1 million in all, through its catalog of some 45 brands: Match, Meetic, OkCupid, Hinge …

A very effective portfolio strategy

Owned by the American giant InterActiveCorp (IAC) of Barry Diller, Match has deployed a portfolio strategy and covers almost all of the dating niches which is a very segmented market (declined by political, religious, racial affinities, etc.).

(c) Bloomberg

« They also have a geographical approach and have been able to launch platforms that take into account regional cultural specificities. As for example with their Harmonica service intended for Muslim countries. We also see that their Pairs offer is very popular in Japan. », Emphasizes Jérôme Colin, in charge of strategy consulting at fifty-five.

A tactic that pays off. The group is very profitable and has generated nearly $ 500 million in revenue in the past three months. His record. And Match has already announced that it should be quickly beaten since the Dallas-based company forecasts a turnover of between 535 and 545 million in the current quarter.

“The gain of many new subscribers creates a virtuous effect”

Tinder should still be the engine of this growth; Match anticipates the conquest of just under 400,000 subscribers between July and September.

« Tinder continues to add elements of monetization and there is a real groundwork done to make the application more and more effective., assures Jérôme Colin. And the gain of many new subscribers creates a virtuous effect, following the same logic as platforms like Facebook or Snap. The more users there are on Tinder, therefore the more “choices”,the more it works and convinces more people to use the service ».

Match just launched Tinder Lite

A few weeks ago, Match also launched a “lite” version [allégée : donc consommant moins de bande passante et utilisable sur des smartphones d’entrée de gamme : NDLR] of its flagship “app” in Southeast Asia and South America. One way for the group to conquer new markets.

For now, Tinder is in no way suffering from the rise of a rival like Bumble, launched by Whitney Wolfe – one of the co-founders of Tinder -, nor from Facebook Dating which is now available in 18 countries in all (but not in France, nor in the United States).

But beware. “ Tinder’s successor can be anywhere. Match must absolutely continue its policy of acquisitions and incubations. Especially since the group is more and more dependent on Tinder “, Suggests Jérôme Colin. The users of dating sites and “apps” are indeed not known for their loyalty… to dating offers.