Match Group, the IAC-owned and -controlled parent company of some of the world’s biggest dating apps and websites, filed to go public Friday.
The company plans to list its shares on the NASDAQ under the ticker symbol “MTCH.”
Match generated 2014 revenue of $US888.3 million, up about 11% year-on-year, with “substantially all” of its dating-services revenue coming from user membership fees.
Match had net income of $US147.8 million, up 18% year-on-year, according to the company’s prospectus.
Match’s portfolio of web companies includes Tinder, PlentyOfFish, Match, HowAboutWe, and OkCupid.
The filing is the second high-profile initial public offering announcement this week, following digital-payments company Square, which filed its IPO prospectus Wednesday.
The two companies are among the most highly anticipated public-market debuts at a time when many of the tech industry’s largest companies are choosing to raise money in the private markets rather than float shares to the public.
After its IPO, Match will be a “controlled company,” with more than 50% of its shares owned by IAC/InterActiveCorp, the internet conglomerate led by media-mogul Barry Diller, the company said in its filing.
Here’s a look at the company’s financials:
The company says that its catalogue of online-dating services have amassed 59 million monthly active users and roughly 4.7 million paid members.
Rapid-fire dating apps
Tinder, one of Match’s most popular dating apps among the 20-something “millennial” audience, allows users to make rapid-fire judgments about whether someone is date-worthy by swiping on a person’s picture on their mobile phone. The basic app is free, but people can pay a $US10 monthly fee to access additional features.
While Match said that nearly all of its revenue currently comes from paid membership fees, it said that advertising revenue could be a big source of future growth:
Part of our strategy is to meaningfully increase the sell-through at our Tinder brand, which is currently below 2% of available ad inventory, and to meaningfully increase the percentage of ad inventory on our other brands sold on a direct basis, which currently is below 2% of total ad inventory sold. We believe that there is meaningful upside to our current revenue levels if we achieve these objectives.
Besides its online dating services, Match also owns the Princeton Review test-preparation and college-counseling services.
Match indicated an offering size of $US100 million in the filing, though that number is typically a placeholder that will increase before the IPO.
The bankers selected as the lead underwriters for the IPO include JPMorgan, Allen & Co., and Bank of America Merrill Lynch.
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