Match Group Inc. (NASDAQ: MTCH) reported its first-quarter financial results after the markets closed on Tuesday. The company said it had $0.11 in earnings per share (EPS) on $285.3 million in revenue. That compares to consensus estimates from Thomson Reuters of $0.08 in EPS on revenue of $285.28 million.
During this quarter, revenue grew 21%, which was led by an overall increase in Dating revenue of 24%. I the same period of the previous year, the company posted $235.1 million in revenue and EPS of $0.13.
Tinder surpassed 1 million paid member count at the end of the quarter. It also launched its first a la carte paid feature.
Average revenue per paid user (ARPPU) declined 10% and sales and marketing as a percentage of revenue declined to 40% from 48%, driven primarily by the acquisition of PlentOfFish and the fast growth at Tinder.
Free cash flow nearly doubled this quarter to $68.5 million, while operating cash flow increased 88% to $75.0 million. On the books, cash, cash equivalents and marketable securities totaled $147.5 million at the end of the quarter, compared to $99.8 million at the end of 2015.
Greg Blatt, chairman and CEO of Match Group, commented:
Match Group posted very strong revenue and Adjusted EBITDA growth in the first quarter, driven by exceptional growth at Tinder, solid performance of Meetic and Match, and the PlentyOfFish acquisition. We expect solid year over year performance throughout the balance of 2016.
Shares of Match were trading up about 23% at $13.67 on Wednesday, with a consensus analyst price target of $15.00 and a 52-week trading range of $8.41 to $16.17.