Analyst Note| Ali Mogharabi |
Match’s third-quarter results missed the FactSet consensus estimates on the top and bottom lines. However, we were pleased that newer apps such as Hinge, not just Tinder, increased their contribution to higher user monetization, displaying the firm’s network effect moat source. With more enhancements to Tinder and new products from the Hyperconnect technology, we think Match is well-positioned to attract more payers and grow the top line at double-digit rates, accommodated by margin expansion through 2025. However, we believe narrow-moat Match remains overvalued as it continues to trade at a premium to our $118 fair value estimate.