IAC/InterActiveCorp Releases Fourth Quarter 2014 Financials

Match.com
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File this one under “Not a surprise.” IAC/InterActiveCorp – owner of Match, OkCupid, Tinder, and more – has released its fourth quarter 2013 financial results, and things are looking good almost all the way across the bar.

IAC’s performance was strong in Q4 2013. Match closed up the year well with 12% revenue growth and 21% OIBA (Operating Income Before Amortization) growth in the fourth quarter. Total revenue for Q4 2013 was $203.9M, up from $182.6M in Q4 2012. For the year, Match grew revenue 10.5% and OIBA 16%, and the company predicts an even better year of growth in 2014.

After pulling out of European markets to focus on the United States in 2009, Match has managed to successfully grow in the US as well as across the globe. The company doesn’t hesitate to call itself “the unquestioned global leader in dating,” with 30 million active users and 3.4 million paying subscribers in 2013.

Core, Meetic and Developing revenues grew 4%, 8% and 69%, respectively, to $115.7 million, $58.9 million and $29.4 million. That growth was driven by an increase in subscribers and as well as the contribution of mobile app Twoo, which was not in the prior year period. On the whole, profits increased due to higher revenue and lower customer acquisition costs as a percentage of revenue.

The most interesting source of IAC’s potential growth is Tinder, the rapidly growing social dating app primarily owned by IAC. Tinder clocked in at 100M daily profile views in August 2013, and is expected to hit 1B daily profile views in April. That’s some serious swiping. Although Tinder's implied valuation today is low, it could prove to be worth more than IAC's current market cap of $6.4B.

Even for IAC’s traditional dating sites, mobile has been big. 50% of all communication for Match.com US is sent from mobile devices. At OkCupid, the number rises to over 60%. Those numbers were single digits as recently as 2010, and IAC says it has just barely scratched the surface where optimization for geo-specific features and mobile markets are concerned.

2014 promises to be full of mobile product enhancements across the board, so IAC expects to see even greater engagement and customer acquisition resulting from smartphones. These are the kind of changes that allow IAC’s portfolio to continuously thrive, despite the changing world around it. The future looks predictably bright for the company.