None of the other dating apps in the Match Group stable comes close.
But as Blatt said in the IAC earnings call, “I think our businesses frankly compete with each other.” Another possible red flag – Tinder's operating margin in the first half of 2015 fell to 14 percent from 23 percent a year earlier, largely because of a rise in the cost of revenue. First, the Princeton Review is a higher-margin business than online dating (making it even more inexplicable why it's included in this IPO). When members pay for Match Group's subscriptions on the Web, it collects all of the revenue.Paid members for all dating properties in North America, for example, grew 11 percent in the first half of 2015, with non-Tinder memberships growing about 8 percent or 9 percent.Overall, Match Group's total revenue grew by 5 percent in the first half of the year.Ever notice how some Tinder profiles, intending to display the best photo first, end up putting them in chronological order?As you swipe along the profile pics to see more, the face seems to age before your eyes.Of all the risk factors in the prospectus, this one struck me as the most worrisome: “As the distribution of our dating products through app stores increases, we may need to offset these increased app store fees by decreasing traditional marketing expenditures as a percentage of revenue, increasing user volume or monetization per user, or by engaging in other efforts to increase revenue or decrease costs generally, or our business, financial condition and results of operations could be adversely affected.” Match Group executives have given a few more hints about Tinder in these earnings calls than they did in the prospectus.
Monetization efforts began early this year and will be “choppy” for a while as new features are rolled out.
Dating services, though, have an even shorter shelf life than ordinary Internet startups. If you want to impress a prospective date, it doesn't help to be too visible on a dating site whose time has passed.
Still, Match Group's 45 dating offerings had 59 million monthly active users in the most recent quarter, though only 8 percent were paying members.
Tinder ranks number 60 among all apps in Apple's App Store, and as a top 10 app in the Lifestyle category.
Including in-app purchases, Tinder is the top-grossing non-gaming app in the App Store.
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