Key points:
- Add to positions here as the stock breaks out from a stage-one consolidation base. The company reported Q3 results yesterday after market close. Revenue and adjusted EBITDA were above estimates, driven by non-Tinder revenue growth. Tinder net subscriber addition was ~400K q/q, compared with consensus of ~300K q/q. Q4 guidance was above estimates.
- Between FY17 and FY19, revenue and EPS had a CAGR of 24.2% and 36.6%, respectively.
- MTCH has classified its IAC business as discontinued operations, but historical EPS includes IAC, leading to a mediocre EPS Rank of 66.
- Good technical ratings: RS Rating of 92 and A/D Rating of B+.
- Institutional sponsorship increased to 1,199 funds (+23% q/q; +94% y/y) in September.