Match

IAC made major strides in the third quarter of 2015. Not only did earnings beat analyst expectations, the company also announced the $575 million acquisition of PlentyOfFish and plans to go public with an IPO.

IAC's third quarter financial results show a company that continues to dominate in its field. Highlights include:

• IAC will continue its partnership with Google for four more years. Google will provide IAC and its network partners with sponsored listings and other search-related services.
• The Match Group revenue increased 19%, or 25% excluding the effects of foreign exchange, to $274.2 million. The Match Group Adjusted EBITDA increased 37% versus Q3 2014.
• Within Search & Applications, Applications queries and revenue increased 28% and 2%, respectively, the first quarter of revenue growth since Q3 2013.
• In the Media segment, Vimeo grew paid subscribers 22% to over 650,000 with revenue increasing 27%.

Greg Blatt, Chairman of The Match Group, believes the company has plenty to look forward to. “We expect to complete our acquisition of PlentyOfFish this week,” he said in a prepared statement, “adding another of the leading global dating brands to our portfolio, at which point we will have over 59 million monthly active users and 4.7 million paying users. All in all, a solid quarter with lots of positive activity.”

Tinder is still one of the hottest topics in the dating world. The Tinder subscription business continued to perform well in Q3 2015. “We have been able to deliver optional paid features that a portion of our users highly value,” said Blatt, “while enhancing the vibrancy of the community through their introduction.” Though monetization is important for Tinder's success, the app focus primarily on growth initiatives going forward.

The other big news for The Match Group is the forthcoming IPO, which is expected to be completed during the fourth quarter of 2015. IAC will sell a 14 percent stake in Match Group, offering 33.3 million shares priced between $12 and $14 to the public. At the midpoint, Match Group will raise $433 million.

The IPO is not without its detractors. In an article for Forbes.com, Peter Cohan outlines four reasons the IPO isn't worthy of a right swipe from investors. He notes that the structure gives the public shares very little voting power, that the proceeds go to repaying the parent company's debt, that the valuation is far below what analysts expected, and that the underwriters are weak.

Multiple similar companies have pulled their IPOs in 2015, including online dating platform Zoosk. It will be interesting to see where The Match Group goes in the final quarter of 2015. For more information on IAC's flagship dating services, you can read our Match.com review and our Tinder review.

Match Group is hoping to live happily ever after with Wall Street. The company, owner of more than 45 online dating brands including Tinder, OkCupid, and Match.com, has filed for an initial public offering of its stock.

Match Group filed for the IPO of common stock with U.S. regulators on October 16 with an offering amount of $100 million, but that figure is a placeholder that could change in the future. The company is set to operate under the ticker symbol "MTCH" on NASDAQ.

Following the IPO, IAC/InterActiveCorp., which owns Match, would retain control of more than 50% of voting rights under its ownership of Class B shares, which have 10 votes apiece. Match will contract with IAC for “administrative and other services,” but the exact amount of distance between IAC and Match Group going forward is so far unknown.

Here are some of the highlights of Match's SEC filing:

• Match makes serious money. The company had $888.3 million in revenue and $148.4 million in after-tax profit in 2014. For the first six months of 2015, revenue was $483.9 million and net earnings were $49.3 million. Match might hit $1 billion in revenue this year.
• Growth is steady, though not explosive. Wall Street wants to invest in technology companies that grow rapidly. Match Group doesn't meet that criterion, but growth between 2013 and 2014 was 10.6 percent. Between 2012 and 2013 it was 12.6 percent. The rate is nothing for the record books, but it's healthy and sustainable.
• Paying customers make up a surprisingly small percentage of total users. Match Group claims 59 million monthly active users across 38 languages and 190 countries. Of those 59 million, only 4.7 million pay to use the services. The company's income is in the hands of only 8 percent of its customers.

Although the online dating segment seems saturated, the IPO prospectus includes opportunities for future growth. According to the filing, the addressable market is currently about 511 million. That number is expected to grow to 672 million by 2019. Increased adoption of mobile and the Internet, the aging of the population and the increase in the number of singles are all positive trends for the industry.

Of course, there are risk factors too. Cybersecurity is more important than ever, and Match Group admits that it can't guarantee protection from attacks. Match also notes that one of its most important assets, Tinder, could essentially be destroyed if Facebook alters the terms and conditions for connecting with the social network. It remains to be seen if these issues will cause risk-averse Wall Street to balk.

The underwriters for the IPO include J.P. Morgan, Allen & Co. and Bank of America Merrill Lynch.

For more information on the dating services owned by IAC, you can read our reviews on Match.com, OkCupid, and Tinder.

Practically every business is expected to have a social media presence in 2015. When your business is a digital one, that pressure doubles. When your target audience is millennials, it triples. Dating services are all about helping people make social connections, but how socially savvy are they on their own profiles?

Digiday used proprietary data from two social media analytics firms, Unmetric and Socialbakers, to pit seven dating apps against each other in the battle for most effective social media strategy. Tinder, OkCupid, Hinge, Match.com, Zoosk, Coffee Meets Bagel and Bumble were put to the test in several different categories.

Number Of Fans

With over 13 million million Facebook likes, Zoosk has the largest social media fan base. Match and Tinder follow with over 827,000 and 369,000 fans, respectively. Twitter shows similar stats. Zoosk has the most followers by far at over 350,000. Match comes in second, with 65,000, and Tinder in third, with over 56,000.

Although Tinder currently has the smallest fan base, it's also the most rapidly growing. The game-changing dating app saw its fan base grow 228 percent between January and October 2015.

Geographical Popularity

Tinder, Hinge, OkCupid, Match and Zoosk all have an international crop of users, but Tinder and Zoosk are the most diverse on social. In fact, the majority of Zoosk's Facebook fans are international.

Other services proved to be particularly popular in specific countries. Hinge is big in India, while Match is favored by Canadians and Tinder has won over Brazilian singles.

Engagement Level

Zoosk is the most prolific poster on social media. The company published 226 posts between January and October, and received the most likes and comments. Despite Zoosk's high volume, Tinder took the top spot for highest average engagement and most posts shared by fans.

Bumble is a relative newcomer to the dating world, but already it's showing promise on social. The app saw over 3,000 interactions with fans on Facebook between July and October. The numbers are expected to grow.

Number Of Fan Posts And Mentions

Match.com's users are the most likely to talk about it on Facebook. More than 9,000 messages were posted to Match's wall between January and October. Hinge and Coffee Meets Bagel come next. Neither Tinder nor OkCupid had user posts on their Facebook walls. Their page settings most likely do not allow it.

Tinder leads the number of mentions on Twitter, perhaps because Twitter's audience skews younger than Facebook and Tinder attracts a similarly youthful user base. The app is followed by Zoosk and Match.com, which come in second and third with around 8,000 and 2,000 mentions apiece.

A recent article in The Wall Street  Journal pointed out the importance of using correct grammar in your online dating profile. According to surveys done in recent years by dating websites OkCupid and Match.com, grammar is by far one of the most important aspects of an online dating profile. If you mix up “your” and “you’re,” many daters will move on to the next.

But why is this? Aren’t people more concerned with great photos, as we’ve seen with apps like Tinder and Grindr? Why should online daters care about how people write – it isn’t necessarily an indication of who they are in real life or how great a match they would be. Besides, aren’t most daters attracted to physical appearances rather than writing style?

Apparently not. Match.com found that 88% of women and 75% of men in their survey of 5,000 singles said they cared about grammar most, putting it ahead of a person’s confidence and teeth.

The WSJ attributed this trend to the rise of dating apps and the common use of text slang, with abbreviations like YOLO (You only Live Once) replacing standard phrasing and sentences. While messaging has now become more of a convenience than an art, grammar has fallen by the wayside, and one way to make yourself stand out among the millions of other daters out there is to approach communicating with someone as though you put in some effort. After all, most dating apps don’t require much more effort than a swipe.

In other words, think about your professional life and how much time and care you put in to communication with your bosses and co-workers. When you send an email to a group of work colleagues, chances are you spell-checked it before pressing the “send” key, and most likely it isn’t filled with acronyms for every common phrase. If you apply the same protocol to online dating, it might seem a bit formal at first, but it definitely scores you more points. The person receiving your message is more likely to take you seriously because it looks like you have put in more time and effort.

In other words, you come across as smart and caring. Thoughtfulness goes a long way.

Grammar has been important in the online dating scene for a while, even before the popularity of texting and dating apps made bad grammar much more common. Dating websites like Match and eHarmony encouraged users to use complete sentences in their profiles and check for spelling errors. Wouldn’t you be turned off if someone you didn’t know turned in a report or emailed you with a couple of brief sentences, rife with misspellings?

A little effort goes a long way.

You can kiss SexyGirl88 goodbye. Usernames will no longer be part of the dating profile, at least on Match.com. The dating website giant has announced that it will no longer require its members to sign up with usernames, which have long been the cornerstone of the dating profile.

Since Match was created 20 years ago people have used catchy, cute, and frankly sometimes crazy usernames as a way to express themselves. But given the ubiquity of online dating coupled with the popularity of social media, the stigma of “being seen” online no longer exists. Despite the creativity usernames require and how they have playfully enhanced profiles seen by potential matches, Match feels there’s no longer a need for people to hide behind an alias.

Match decided to pay homage to the art of the username by providing some final statistics about them, gathered from its own user database. They created a list of the top 10 “most memorable” user names (making it understandable why many people won’t be sad to see them go):

• TwisDemNipples
• Hardworkingmilf
• IWantAllDaSecks
• DilettosJunkie
• SkittleFartz
• TonyPonyNY
• GlitterIsAColor21
• SPF70Always
• BigGulps32oz
• Assless_Chaps

Match also conducted a survey of its members on some of the best and worst usernames employed over the years. (Although we should note that daters could have used this kind of information when usernames were still a part of the equation.) Perhaps this information can help you with your profiles on other dating sites.

Match discovered that your given name matters. Guys named Mike (61%), Dave (60%) and Steve (59%) are the most likely to get messaged by a woman on Match, while men are more likely to contact Sarah (62%), Michelle (60%), and Lisa (59%).

Country music has always been a money-making business, and it seems that daters on Match likewise preferred to emphasize their own country roots. “Countryboy” and “Countrygirl” have been two of the most popularly utilized names on the site, but 78% of women and 36% of men would NOT reach out to someone with that moniker. The least popular usernames - “Babygirl” ( 14%) “Angel” ( 29%) and “Cowboy” (16% ) did not fare too well, either.

Match also found that men and women differed on what they felt made usernames “bad.” According to the survey, 62% of men felt that immature names were a turn-off, while 81% of women felt offensive names were a turn off.

Now that Match no longer requires usernames, perhaps other dating sites will follow suit. Thanks to dating apps, profiles are being streamlined down to their basic elements: photos and a few tags. It makes sense that usernames would become sidelined, too.

For ore on this dating service you can read our review of Match.

We're halfway through 2015 and IAC has good news to share. The company's profit in Q2 2015 exceeded expectations, thanks in large part to the overwhelming success of the paid version of its mobile app Tinder.

Match Group, the star of the conglomerate, has driven consistently strong results for the last few quarters, and this one has been particularly momentous. IAC announced its intent to pursue an initial public offering of less than 20% of the common stock of the Match Group. The IPO is expected to be completed during the fourth quarter of 2015.

“The IPO positions The Match Group for continued success with an independent currency, and allows us to focus our attention and capital on growing the rest of IAC’s assets,” said IAC CEO Joey Levin in a statement.

The Match Group also announced plans to purchase PlentyOfFish for $575 million on July 14, 2015. The transaction is expected to close early in the fourth quarter of 2015.

The paid version of Tinder, launched in March, has garnered good responses from users, despite concerns from many that the model would fail.

"Monetization continues to perform at or above our expectations on key metrics like renewal, conversion and resubscription rates,” said Match Group Chairman Greg Blatt. “We’ve seen no discernible negative correlation between monetization and growth."

IAC reported that the number of paid subscribers for its dating services grew 18% to 4.1 million in the second quarter ended June 30. Revenue at Match Group, which accounts for about a third of total revenue, rose 19%.

Outside of IAC's dating businesses, the company has other successes to report. Within Search & Applications, Applications queries increased 8% driven by 20% B2C growth. B2C revenue increased 18% versus prior year. In the Media segment, Vimeo grew paid subscribers 25% to nearly 630,000. In the eCommerce segment, HomeAdvisor revenue grew 26%.

On the downside, Websites revenue decreased 20% due primarily to a decline in revenue at Ask.com and certain legacy businesses. Applications revenue decreased 2% due to lower revenue in B2B. Revenue in Media was down 1% versus last year, despite the strong growth at Vimeo. Operating income for the match Group in the current year period was negatively impacted by a $4.2 million year-over-year increase in amortization of intangibles.

All in all, revenue growth clocked in at 2% for a total of $771.1 million. IAC's net income was $59.3 million, or 68 cents per share, compared with a net loss of $18 million, or 22 cents per share.