Wednesday, February 4, 2015
Match Group - IAC Q4 2014 and FY 2014 results.
"In effect, we're rebuilding our underlying technology infrastructure that fuels both the mobile and desktop experiences for both Match and Meetic, and we're allocating more resources to mobile development on both sides of the pond, as well as undertaking some other streamlining that is probably overdue. Once we complete this rebuild, our plan is to migrate People Media and our Latin America products onto the Match platform in early 2016. While we expect our product initiatives to continue unfettered on the mobile platforms through 2015, this increased focus on our backend technology is likely to divert attention from the steady process of improving financial metrics on our desktop business through the conversion and similar optimizations that have typically been our bread and butter."
For me it is clear they do not want to innovate. They want to squeeze their big databases to get all the juice (money) from the wallets of the daters.
With 3.5 Million paid members and USD 897 Million in revenue, for me, they reached operating ceiling.
As for Tinder, they do not disclose operating costs like Zoosk.
Perhaps Tinder will make no profit at all (like Zoosk) and it is only cannibalizing Match and Meetic from inside.
Please see also:
Report about Q3 2014, IAC (nasdaq IACI)
The optical illusion of Tinder
What I "learned" at iDate 2015 Superconference
Match, PlentyOfFish (POF) and eHarmony in DEATH SPIRAL?
about article "Match May Not Light IAC's Fire"