Match Investors Found Something to Like in Its Q4 Earnings
Match shares soared after it released better-than-expected fourth-quarter financial results late on Tuesday.
When Match Group Inc. (NASDAQ: MTCH) released its fourth-quarter financial results after the markets closed on Tuesday, the online dating firm said that it had $0.43 in earnings per share (EPS) on $457.3 million in revenue. That compared with consensus estimates of $0.38 in EPS and $448.43 million in revenue, as well as the $0.18 per share and $378.91 million posted in the same period of last year.
During the latest quarter, total revenue grew 21% over the prior-year quarter, driven by 17% average subscriber growth and 4% average revenue per user growth, which came in at $0.58.
Average subscribers increased to 8.2 million from 7.0 million in the prior-year quarter. Tinder average subscribers were 4.3 million in the fourth quarter, increasing 233,000 sequentially and 1.2 million year-over-year
The company offered no guidance in the report, but consensus estimates call for $0.35 in EPS and $469.6 million in revenue for the first quarter.
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For the past year, operating cash flow increased 88% to $603 million, and free cash flow increased 96% to $573 million.
On the books, Match’s cash and cash equivalents totaled $186.95 million at the end of the quarter, down from $272.62 million at the end of the previous fiscal year.
Shares of Match traded up more than 11% at $59.26 shortly after the opening bell. The 52-week range is $33.06 to $60.95, and the consensus price target is $50.24.
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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.
