Shawn O’Malley and Daniel Mahncke break down Match Group (ticker: MTCH), a company that operates as part of a duopoly in online dating, owning a number of dating platforms, including Tinder, Match.com, Hinge, OkCupid, and more, with specialized platforms appealing to certain demographics and dating niches. During the Pandemic, the company was a popular growth stock, but as the number of paying users at Tinder has declined, the business has stagnated, and the market has punished it severely. Yet, the company is still quite profitable, yielding a seemingly attractive valuation.
In this episode, you’ll learn about the unique business behind online dating, why Match is having trouble resonating with Gen Z, how large the TAM is for online dating, the most important things the company is focusing on to reinvigorate Tinder, why Hinge may be the future of Match Group and online dating, and whether Match Group is attractively priced, plus so much more!
IN THIS EPISODE, YOU’LL LEARN:
00:00 – Intro
07:24 - What advantages Match Group has in its favor as the world’s largest online-dating company
29:05 - About Match’s origin story as a spinoff and its executive turnover
35:59 - The biggest structural challenges weighing on Match Group’s growth
44:44 - Why the senior dating market may be a growth engine for Match Group
46:50 - How Match Group operates and competes as part of a duopoly with Bumble
47:19 - Why investors are so weary of the online dating industry
01:03:18 - How to think about modeling MTCH’s intrinsic value
01:07:28 - Whether Shawn and Daniel add MTCH to their Intrinsic Value Portfolio
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
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Check out the Pew Research findings on online dating.
Andrew Chen’s article on why investors don’t fund online dating.
Gen Z dating and marriage stats.
Explore our previous Intrinsic Value breakdowns: Moncler, Uber, Nike, Reddit, Nintendo, Airbnb, AutoZone, Alphabet, Ulta, John Deere, and Madison Square Garden Sports.
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