Match Group spikes 20% after its Tinder app adds 500,000 new users in the second quarter
Photo illustration by Joe Raedle/Getty Images
- Match Group skyrocketed as much as 20% in aftermarket trading Thursday after beating analyst estimates for second-quarter earnings and boosting its yearly revenue forecast.
- Tinder drove much of the company's revenue growth by gaining more than 500,000 users over the three-month period, a 37% year-over-year improvement.
- Match also announced an investment in Egypt-based dating app Harmonica, the next step in its plan for global expansion.
- Watch Match Group trade live here.
Match Group soared as much as 20% in aftermarket trading on Thursday after its second-quarter earnings report showed a surge of more than 500,000 new Tinder users. The company also upgraded its full-year growth forecast.
The company - which runs OkCupid, Plenty of Fish and Match.com alongside Tinder - beat analyst estimates for both revenue and profits. The company didn't give specific figures for its updated yearly revenue guidance, but shifted its expectation to "high teens" from "mid teens."
Here are the key numbers:
Revenue: $498.0 million, versus the $489.2 million estimate
Earnings per share: $0.430, versus the $0.405 estimate
Average Tinder subscribers: 5.2 million, up 37% year-over-year
Average revenue per user: $0.58, up 1.8% year-over-year
Tinder's massive second-quarter popularity served as the primary reason for the company's revenue boost, as it drove 46% direct revenue growth over the three-month period. Tinder now has more than 5.2 million average subscribers. The company's other online dating products saw more modest growth.
The company also announced an investment in Egypt-based dating app Harmonica, furthering its global expansion. Match has already acquired dating apps in Japan and hired consultants to configure its existing products to better fit different cultural preferences.
Match closed at $73.91 per share Thursday, up about 73% year-to-date.
Match Group has seven "buy" ratings, 13 "hold" ratings, and one "sell" rating from analysts, with a $70.12 consensus price target, according to Bloomberg data.
Now read more markets coverage from Markets Insider and Business Insider:
- I just got laid off from my dream job at Tesla without warning. I feel like my life got uprooted so a billionaire could save some money.
- Four-days work week, full and final settlement within 2 days of exit — new changes at workplaces to reflect from July 1
- Mark Zuckerberg told Meta staff he's upping performance goals to get rid of employees who 'shouldn't be here,' report says
- SIMPLY PUT: extreme weather is the new normal in India
- Antonia Wade, PwC's global CMO, tells Insider how B2B spending changes in tough economic times
- Ban on single-use plastic kicks in across India as the country recognises the choking impacts of plastic waste on the environment
- Bank FDs will draw down from mutual funds if interest rates go up to 7.5-8%, says report
- Best smartphones under ₹40,000 in India