Oppenheimer analysts provided a review on Match Group, Inc. (NASDAQ:MTCH), reiterating the Perform rating as they expect lower near-term Tinder payers post-price increase. In addition, the revenue effects of this will be delayed since it will only affect new payers.
The analysts now assume a Q1/Q2 Tinder payer net loss of 134,000/43,000 (vs. Street estimate of -96,000/+250,000). Meanwhile, International pricing “optimization” may result in lower prices in some regions, similar to recent Netflix changes, partially offsetting price increases.
In the short run, analysts perceive a risk of execution as Tinder moves towards a premium model by raising subscription fees and investing more in marketing.
The analysts noted that overall web traffic to dating sites continues to show weakness in both EMEA and US, suggesting economic impacts or a maturing market.
