Most people -- if not everyone, at this point -- have heard of online dating. Hundreds of millions of folks around the world use smartphone apps like Tinder, Bumble, and Hinge to connect with potential romantic partners. It is a global phenomenon, with these apps routinely being some of the most popular every year on mobile app stores. In fact, for heterosexual relationships, it's estimated that roughly 40% now begin online, with that number steadily rising.

In spite of this massive growth, the leading online dating company, Match Group (NASDAQ: MTCH), has seen its stock flounder in recent years. The owner of Tinder and fast-growing Hinge has seen its share value collapse by 80% from all-time highs as it loses paying users. Does this stock-price movement indicate that the online dating giant is in trouble? Or is this just a fantastic buy-the-dip opportunity? Let's look closer and find out.

Match Group posted its fourth-quarter and full-year 2023 results this week. If we look at its headline financials, the report was solid. Revenue grew 10% year over year to $866 million in Q4, while its operating margin came in at 30%. These scaled dating applications are highly cash-generative, with Match Group producing $829 million in free cash flow last year.

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Source Fool.com