Match.com (Buy, $21 PO) Stock view: Positive on Tinder monetization growth on new products Match has continued to build monetization on Tinder and we expect a more widely released Tinder Boost as well as international marketing spend to have a positive impact in 1Q17 results. The incremental revenue increase combined with Core enhancements should drive ARPU forward, though we are still cautious given Core’s declining to flat growth and project 1Q17 at $.0.57 (-3% y/y). Another issue on the horizon for Match group is the high ownership percentage of IAC. Based on our discussions with management, this is a known issue from both Match and IAC’s perspective. The high degree of IAC ownership limits the float and has created a disproportionate short interest on the company to obtain higher exposure to IAC’s core (ex-Match) properties. Our conversations suggest we can expect further discussion from management on ways forward in 2017, with the most likely outcome, in our view, a spin off IAC’s Match ownership to IAC shareholders. As Tinder expands, one concern we have is that its highly diverse user base could cause an overload of options and limit user’s ability to find the type of matches they are looking for. An “elite” version of the app was recently launched called “Select” (per TechCrunch), highlighting the company’s focus on making sure users are able to find suitable matches in different ways. 1Q17 should see international marketing spend on Tinder begin to pay off. We expect that paid member count (PMC) will continue to trend up driven by Tinder and other recent platforming initiatives helping to increase conversion on Core mobile and other sites like Plenty of Fish (PoF) and Meetic. Key theme/metric(s) for 1Q: International PMC growth Key for the quarter will be international PMC growth and we expect international to grow 25% y/y to 2.3mn and overall PMC growth to be up 17% y/y to 5.9mn as Tinder marketing outside of the US should start p