Investors Swipe Right for Match Earnings
Match shares rose early Wednesday after it reported better than expected quarterly results late on Tuesday.
Match Group Inc. (NASDAQ: MTCH) reported its most recent quarterly results after the markets closed on Tuesday. The dating service said that it had $0.43 in earnings per share (EPS) and $498 million in revenue, which compares with consensus estimates of $0.40 in EPS and $488.96 million in revenue. The same period of last year reportedly had $0.41 in EPS and $421.2 million in revenue.
During the latest quarter, average subscribers increased 18% to 9.1 million, up from 7.7 million in the prior-year quarter.
Out of this, Tinder average subscribers were 5.2 million in the second quarter of 2019, increasing 503,000 sequentially and 1.5 million year over year. Analysts were expecting 392,000 net additions for the quarter.
Match now expects about 1.6 million net subscriber additions for the full year, whereas the company had previously forecast upward of 1 million. Tinder added 887,000 net subscribers in the first half of 2019.
Average revenue per user grew 2% over the prior-year quarter to $0.58. Excluding foreign exchange effects, it was $0.60, an increase of 5% year over year.
Separately, Match said that it’s seeing traction for some of its other platforms, including Hinge, a more relationship-oriented product. Downloads were up more than three times from a year earlier as the app begins to catch on outside major urban areas.
On the books, cash and cash equivalents totaled $266.37 million, up from $186.95 million at the end of the previous fiscal year.
Shares of Match Group closed Tuesday at $73.91, in a 52-week range of $33.30 to $79.30. The consensus price target is $70.71. Following the announcement, the stock was up about 17% at $86.23 in early trading indications Wednesday.
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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.
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