On Wednesday, BofA Securities maintained its Neutral rating on Match Group (NASDAQ:MTCH) shares, with a steady price target of $36.00. The firm's analysis acknowledged Match Group's fourth-quarter 2024 revenue of $860 million, which marginally surpassed Wall Street's expectations of $857 million. The company maintains robust financial health, with InvestingPro data showing an impressive 72.4% gross profit margin and a perfect Piotroski Score of 9. However, the company's EBITDA fell short, recording $324 million against the anticipated $328 million, attributed to increased operational expenses.
Tinder and Hinge's subscriber counts met projections, with 9.49 million and 1.6 million payers, respectively. Revenue from Tinder was reported to align with expectations, while Hinge's revenue exceeded predictions, benefiting from a higher revenue per paying user (RPP). Match Group's initiatives, such as the December launch of "First Impressions," are progressing as planned. This feature is expected to generate additional revenue and contribute to augmented live commentary (ALC) revenue. Meanwhile, the optimization of the "Passport" feature aims to reduce its impact on subscription revenues while boosting total revenue. With a current P/E ratio of 14.36 and strong revenue growth of 6.12%, InvestingPro analysis suggests the company is well-positioned for continued growth.
The report further noted that Match Group's share repurchase activity in the fourth quarter was affected by the timing of their Investor Day, with only $117 million in buybacks compared to $243 million in the previous quarter. The company anticipates resuming its share buyback program in the first quarter of 2025.
Foreign exchange headwinds presented an additional challenge, resulting in an $18 million impact, which was $3 million more adverse than the projections shared during the December Investor Day. Despite these headwinds and the EBITDA miss, BofA Securities' stance on Match Group remains unchanged.
In other recent news, Match Group, Inc. has reported significant developments. The company announced the appointment of Spencer Rascoff as the new Chief Executive Officer, effective immediately. Rascoff, known for co-founding Zillow (NASDAQ:ZG) and other startups, replaces Bernard Kim and brings extensive leadership experience to the role. His compensation includes a base salary of $800,000 and potential for discretionary bonuses and equity awards, with a notable "Value Creation Award" tied to the company's stock performance.
In terms of financial outcomes, Match Group reported fourth-quarter results that exceeded expectations, with an adjusted earnings per share of $0.59 and revenue of $860 million. However, the company's guidance for the first quarter and full year fell short of Wall Street projections. For the first quarter, revenue is expected between $820 million and $830 million, with full-year 2025 revenue guidance set between $3.375 billion and $3.5 billion. These figures are below the consensus estimates.
These are recent developments for Match Group, as the company navigates changes in leadership and financial projections. As always, investors are encouraged to review these facts and make informed decisions.
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