Match Group 2Q Revenue Ticks Down as Tinder Continues to Weigh on Results

Dow Jones
Aug 05
 

Match Group posted a higher second-quarter profit, but revenue edged down as sluggish results for Tinder offset continued strength at Hinge.

The dating app company expects another sales decline in the current quarter, though gave a better profit outlook than Wall Street was expecting.

The Los Angeles-based company's revenue ticked down 1% to $853.1 million, below analyst estimates of $857.8 million, according to FactSet.

Revenue at Tinder, Match's biggest app, fell 1% to $457.5 million, weighed down by a decline in paying users and a headwind from user experience tests and product changes.

Still, Match said efforts to turnaround Tinder with improved recommendation algorithms, an increased focus on trust and safety, new features and a rebrand are leading to improvement for some metrics like daily active users.

"Tinder finally looks and feels like the app young daters want to use," Chief Executive Spencer Rascoff said. "The next step is winning back singles who've drifted away, and reaching those who've never tried Tinder at all," he said, pointing to the app's foray into in-person events, which are now live in the U.S. and Europe.

Hinge, meanwhile, continued to post double-digit growth with revenue up 22% at $203.5 million.

Match's second-quarter profit came in at $170.5 million, or 70 cents a share, up from $125.5 million, or 49 cents a share, a year earlier. Analysts polled by FactSet expected earnings of 65 cents a share.

For the current third quarter, Match Group expects revenue of $885 million to $895 million, down 2% to 3% year over year. The company projects adjusted earnings before interest, taxes, depreciation, and amortization of $330 million to $335 million.

Analysts forecast revenue of $892.7 million and adjusted Ebitda of $321.1 million for the quarter.

For the year, Match said it expects revenue to be near the midpoint, and adjusted Ebitda to be at or above the high end, of the guidance ranges it gave in February.

 
 

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