Investors Swipe Left on Match After Earnings
Match released its third quarter financial results after the markets closed on Tuesday. The dating service said that it had $0.51 in earnings per share (EPS) and $541.5 million in revenue, compared with consensus estimates that called for $0.42 in…
Match Group, Inc. (NASDAQ: MTCH | MTCH Price Prediction) released its third quarter financial results after the markets closed on Tuesday. The dating service said that it had $0.51 in earnings per share (EPS) and $541.5 million in revenue, compared with consensus estimates that called for $0.42 in EPS and $540.58 million in revenue. The same period from last year had $0.39 in EPS and $443.94 million in revenue.
Total revenue grew 22% over the prior year quarter, and 24% excluding foreign exchange effects.
During the latest quarter, average subscribers increased 19% to 9.6 million, up from 8.1 million in the prior-year quarter.
Out of this, Tinder average subscribers were 5.7 million in the second quarter of 2019, increasing 437,000 sequentially and 1.6 million year over year.
Average revenue per user grew 4% over the prior-year quarter to $0.59. Excluding foreign exchange effects, it was $0.60, an increase of 6% year over year.
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At the end of the quarter, the company had $366 million in cash and cash equivalents and $1.6 billion of long-term debt.
Match repurchased an additional 0.3 million shares using $24 million in cash on a trade date basis at an average price of $73.64. In August 2019, the board authorized an increase of 10 million shares in the previously announced share repurchase program. As of November 1, 2019, a total of 9.9 million shares remain available under the repurchase program.
Shares of Match closed Tuesday at $68.77, with a 52-week range of $33.30 to $95.32. The consensus analyst price target is $90.00. Following the announcement, the stock was down 14% at $59.00 in the after-hours session.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
