Match Group is expecting Hinge will triple its revenue this year, as the online dating company continues to focus on making it one of the potfolios main growth drivers.
Speaking in an exclusive discussion with MarketWatch, CEO of Match Group Americas Amarnath Thombre explained that the dating app is currently experiencing positive growth because of its refined premium model.
Hinge has added a number of paid features since it has been under Match Group’s tutelage, designed to help the most serious daters find better connections.
Stock market experts are also expecting Match Group to continue to trend upwards, due to the rise of virtual dating while Hinge becomes one of the most popular apps for millennial singles.
Lauren Cassel, Executive Director of Equity Research at Morgan Stanley, told MarketWatch: “[W]e estimate Hinge will likely reach ~63% the number of Tinder subscribers at scale, but should be able to monetize those users at a much higher rate.”
Hinge potentially has a higher conversion rate to premium members as it targets millennials that are looking for serious relationships and, therefore, are more likely to see value in paying for a dating app subscription.
Morgan Stanley has updated its target value for Match Group to $151 per share. It is currently sitting at $106 with a market capitalisation of over $27.5 billion.
Rival dating company Bumble is reportedly planning an initial public offering of its own in 2021. Unnamed sources told Bloomberg at the beginning of the month that it is aiming for a valuation of at least $6 billion.
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