Match Swipes Right for Q1 Earnings
Match shares soared on Wednesday in the wake of a better than expected first-quarter report.
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When Match Group Inc. (NASDAQ: MTCH) reported its first-quarter financial results after the markets closed on Tuesday, the online dating firm posted $0.49 in earnings per share (EPS) and $464.6 million in revenue. That compares with consensus estimates of $0.32 in EPS and $463.74 million in revenue, as well as the $0.26 per share and $407.37 million reported in the same period of last year.
During the latest quarter, average subscribers increased 16% to 8.6 million, up from 7.4 million in the prior year quarter. At the same time, Tinder average subscribers were 4.7 million, increasing 384,000 sequentially and 1.3 million year over year.
Average revenue per user was flat over the prior-year quarter. However, excluding foreign exchange effects, that average was $0.60, an increase of 4% over the same period of last year.
Match did not offer any guidance for the second quarter. However, consensus estimates call for $0.40 in EPS and $485.53 million in revenue for the quarter.
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The firm detailed in the report:
Operating income grew slower than revenue due to $11.0 million higher stock-based compensation expense, primarily as a result of $9.4 million in expense related to the vesting of certain awards for which the performance condition was met. Adjusted EBITDA growth was impacted by higher cost of revenue, due to in-app purchase fees, as revenue is increasingly sourced through mobile app stores, and higher legal costs, partially offset by lower selling and marketing expense as a percentage of revenue.
Shares of Match were last seen up about 12% at $67.93, in a 52-week range of $33.30 to $68.67. The consensus price target is $58.24.
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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.
