Benzinga - by Surbhi Jain, .
In the dynamic world of online dating, Bumble Inc (NASDAQ:BMBL) and Match Group Inc (NASDAQ:MTCH) stand out as prominent players.
Each company’s apps and services have distinct strategies and market approaches. Both companies recently shared insights at the JPMorgan TMC Conference, providing a rich ground for comparison.
We looked into their key initiatives, financial outlooks, and strategic acquisitions to help investors make informed decisions.
Bumble
- App Relaunch: Bumble’s recent app relaunch focused on optimizing the women's experience, improving onboarding, strengthening safety features, and refining subscription tiers. Key changes included the introduction of Opening Moves, a four-profile photo minimum, and new Premium+ features like photo insights. Nearly 50% of new women users have adopted Opening Moves, indicating strong engagement.
- Financial Outlook: The Austin, Texas-based company expects the second quarter to have the lowest margins due to marketing expenses, with improvements anticipated in the year’s second half. It aims for significant margin leverage by 2025 from reorganization benefits.
- Geneva Acquisition: Bumble acquired Geneva to enhance its Bumble For Friends experience, targeting younger demographics. This strategic move aims to expand beyond dating, leveraging Geneva's technology for broader social connections.
Match Group
- Tinder User Trends: Match Group stabilized new user declines for Tinder. That should improve monthly active user (MAU) trends. While Tinder's MAUs declined 9% year-over-year, the stabilization is a positive indicator.
- Tinder Payers: The Dallas-based company remains confident that net additions of Tinder payers will turn positive by the third quarter, driven by stabilized user trends and product initiatives. The company sees potential for year-over-year growth in Tinder payers by the fourth quarter.
- Hinge Insights: About 10% of Hinge users are former Tinder users. Match Group envisions Hinge achieving mid-30% margins over time, relying on scale and efficiency improvements.
Comparative Insights for Investors
- User Engagement: Bumble's innovative features and positive user response position it well for future growth. Match Group's focus on stabilizing user trends and payers is crucial for revenue improvement.
- Financial Outlook: Bumble expects margin improvements in the second half and significant leverage by 2025. Match Group is optimistic about positive net additions of Tinder payers in the coming quarters.
- Strategic Moves: Bumble's acquisition of Geneva targets younger users and expands social connections. Match Group focuses on optimizing existing platforms like Tinder and Hinge.
Investors should weigh these factors when considering investments.
Read Next: Bumble Could ‘Close Value Gap’ To Tinder’s Parent Company: Expert Predicts 45% Upside On Heels Of Q1 Earnings
Latest Ratings for MTCH
| Mar 2022 | Deutsche Bank | Initiates Coverage On | Buy | |
| Mar 2022 | BMO Capital | Upgrades | Market Perform | Outperform |
| Feb 2022 | BMO Capital | Maintains | Market Perform |
View the Latest Analyst Ratings
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