On Monday, November 9, Match Group, Inc. – the parent company of the popular dating app Tinder – filed an S-1 IPO prospectus form with the SEC. The form noted that the company will offer 33,333,333 shares, at an estimated price of between $12-14 a share. With these estimates, the Tinder parent IPO could be worth as much as $466 million.
It is quite clear that Match Group is a major player in the online dating/matching industry. The company operates in just under 40 languages, and boasts a whopping 4.7 million paying members:
Match Group is the world’s leading provider of dating products. We operate a portfolio of over 45 brands, including Match, OkCupid, Tinder, PlentyOfFish, Meetic, Twoo, OurTime and FriendScout24, each designed to increase our users’ likelihood of finding a romantic connection. Through our portfolio of trusted brands, we provide tailored products to meet the varying preferences of our users. We currently offer our dating products in 38 languages across more than 190 countries, and we had approximately 59 million monthly active users, or MAU, and approximately 4.7 million paid members, using our dating products for the quarter ended September 30, 2015.1
What’s more, Match Group is incredibly profitable:
Our revenue increased from $713.4 million in 2012 to $803.1 million in 2013 and then to $888.3 million in 2014, representing year-over-year increases of 13% and 11%, respectively. For the nine months ended September 30, 2015, our revenue increased 16% over the comparable period in 2014 to $752.9 million. In 2012, 2013, 2014 and for the nine months ended September 30, 2015, we generated Adjusted EBITDA of $236.5 million, $271.2 million, $273.4 million and $179.4 million, respectively, operating income of $186.6 million, $221.3 million, $228.6 million and $125.9 million, respectively, and net earnings of $90.3 million, $126.6 million, $148.4 million and $84.7 million, respectively.2
While Match Group is, undoubtedly, atop the industry at this very moment, the space remains crowded. Tinder, OKCupid, and PlentyOfFish – all owned by Match Group – are among the most used dating apps/platforms out there. That said, it is far from a certainty that this stock will perform well. Just ask Zynga or King.