Investors Swipe Left on Match Earnings Beat
Match shares plunged early Wednesday after it released its third-quarter financial results late on Tuesday.
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When Match Group Inc. (NASDAQ: MTCH) released its third-quarter financial results after the markets closed on Tuesday, the company said that it had $0.39 in earnings per share (EPS) on $443.9 million in revenue. That compared with consensus estimates of $0.36 in EPS and $436.65 million in revenue, as well as the $0.19 per share and $343.42 million posted in the same period of last year.
During the quarter, total revenue grew 29% over the prior-year quarter, driven by 23% average subscriber growth and 6% average revenue per user growth.
Average subscribers increased to 8.1 million, a 23% increase over the prior-year quarter.
The company offered no guidance in the report, but consensus estimates call for $0.38 in EPS and $454.01 million in revenue for the fourth quarter.
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Mandy Ginsberg, Match CEO, commented:
Match Group delivered another quarter of strong top and bottom line growth, with Tinder continuing as our growth engine. We are making product and marketing investments in our brands to drive growth across our portfolio. Even with these investments, Match Group is generating significant free cash flow and reducing leverage levels, and we have returned a meaningful amount of capital to shareholders. Today, we are announcing that our Board has declared a special dividend of $2.00 on each share of Match Group common stock and class B common stock. We remain on the lookout for strategically compelling M&A and have the financial flexibility to acquire companies when we find innovative products with long-term potential.
Shares of Match traded down about 20% at $41.14 Wednesday morning. The consensus analyst price target is $56.08, and the 52-week trading range is $26.68 to $60.95.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
