The dating app company's stock hit an all-time high in early February but has since declined by around 17%.
Match Group's stock had run up due to the company's announcement that it plans to acquire Hyperconnect for $1.72 billion in stock and cash. Hyperconnect is a South Korean technology company that operates two apps, Azar and Hakuna Live, and according to Match, the business is profitable and saw a 50% year-over-year rise in revenue for 2020. Investors' enthusiasm for the deal has probably fizzled out over time as there have been no new developments. A broad sell-off in technology stocks at the beginning of March likely also contributed to Match Group's decline.
Match's business remains strong with full-year 2020 revenue rising 17% year over year to $2.4 billion. Average subscribers grew by 12% year over year while free cash flow jumped by 23% year over year. These numbers attest to the power of Match's portfolio of apps that have benefited from the tailwinds generated by the pandemic as more people seek to connect remotely.
The company continues to invest in technology that enhances its suite of dating apps. Recently, it partnered with Garbo, a non-profit background check platform that provides historical information on abuse and violence, to implement such a capability on its popular Tinder app. This feature will enable users to allow them to make safer choices when choosing who to meet with.
And Chispa, a dating app Match created in 2017 for Hispanic singles, has logged four million downloads in the week ended March 31. The company has partnered with Tragos, a card game that provides ice-breakers for users.
As Match comes up with more innovative functions for its range of apps, investors can also look forward to better numbers from the company over the medium term.