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Match Stock Rises As Tinder App Firm’s Earnings Beat; Guidance Mixed

Match Group (MTCH) late Tuesday reported first-quarter earnings and revenue that topped estimates. Match stock climbed, though the online dating firm issued mixed guidance for the June quarter amid rising investments.




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For the first quarter, Match earnings came in at 65 cents per adjusted share, up 14% from a year earlier. Revenue climbed 23% to $668 million, the largest provider of online dating products said.

A year earlier, Match earnings were 57 cents on sales of $544.6 million. Analysts expected Match earnings of 40 cents a share on sales of $650.6 million for the period ended March 31.

Match stock rose 5.8% to near 147 during after-hours trading on the stock market today. In Tuesday’s regular session, Match stock fell 6.4%.

Match Stock: EBITDA Guidance Below Expectations

Match said first-quarter earnings before interest, taxes, depreciation and amortization, also known as EBITDA, rose 32% to $230 million. Analysts had projected EBITDA of $213.3 million.

Analysts estimated average paid Tinder subscribers of 6.9 million at the end of the March quarter..

Match didn’t break out Tinder subscribers in its earnings release. In a statement, Chief Executive Shar Dubey said: “Among our brands, Tinder has the broadest geographic exposure and a higher portion of its revenue coming from non-recurring a la carte revenue. As a result, Tinder has felt the impact of higher Covid-19 cases on propensity to pay the most acutely during the pandemic. That said, we are seeing a strong recovery in à la carte revenue in several regions.”

For the June quarter, Match forecast revenue of $685 million, slightly above estimates of $679 million. The company said it expects EBITDA in a range of $255 million to $260 million, below expectations. Analysts projected EBITDA of $267.4 million.

Heading into the Match earnings report, analysts expected weakness in Match’s international business amid continued coronavirus outbreaks in India and Brazil. In the June quarter, the U.S. and U.K. economies are expected to re-open more widely, possibly providing upside.

With Tinder growth slowing outside Asia, the relationship-focused dating app Hinge has been a bright spot. Match acquired Hinge in early 2019.

Match Rival Launches IPO

The company owns other brands such as Match.com, OKCupid, PlentyofFish and Meetic. Match in February acquired Hyperconnect for $1.72 billion.

Heading into the Match earnings report, Match stock had a Relative Strength Rating of 64 out of a possible 99.

Bumble, a rival of Match, raised $2.15 billion in a recent initial public offering. However, Bumble stock has under-performed amid a wave of IPOs. Here are IBD’s IPO Leaders.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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