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Match Group Releases Q4 2015 Financial Results

Match.com
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Having survived its first quarter as a standalone public company, Match Group Inc. has released fourth quarter 2015 results.

"Match Group had a seminal fourth quarter, completing our initial public offering, the acquisition of PlentyOfFish, and the realignment of our management structure to better reflect our increasing global scale," commented Greg Blatt, Chairman and CEO of Match Group. "At the same time, we delivered solid revenue and profit growth and we head into 2016 with increasing momentum, which we expect will continue to build throughout the year."

Highlights of Q4 2015 include:

  • Total revenue increased 12%, or 16% excluding the effects of foreign exchange, driven by a 14% increase in Dating revenue attributable to 30% higher Average PMC, which grew to over 4.6 million globally.
  • Excluding both deferred revenue write-offs related to acquisitions and foreign exchange impacts, total Dating revenue would have been $259.4 million, or 22% higher than in Q4 2014.
  • Adjusted EBITDA for Q4 2015 was $99.3 million, an increase of 16% versus Q4 2014.
  • ARPPU was $0.53 for Q4 2015, compared to $0.62 in Q4 2014, a decline of 14%. Excluding the effects of foreign exchange, which was approximately 400 basis points, and deferred revenue write-offs related to acquisitions, which was approximately 300 basis points, ARPPU declined 7%.
  • The increase in Average PMC compared to Q4 2014 was driven primarily by significant growth at Tinder and the acquisition of PlentyOfFish, which closed on October 28, 2015.
  • Net Income and GAAP Diluted EPS declined by 26% and 44%, respectively, in the fourth quarter of 2015 compared to Q4 2014, driven primarily by an increase in stock-based compensation expense of $14.9 million and an increase in interest expense of $16.9 million, which includes $7.3 million of debt issuance costs. Adjusted Net Income and Adjusted EPS, which exclude the impact of the stock-compensation expense, declined 2% and 26%, respectively, as a result of the increased interest expense.

Total revenue for the October-December period was $268 million, up 15% but short of the $278 million expected by Wall Street analysts polled by Thomson Reuters. The company reported a net income of $35.6 million, a 26% decrease from $48.3 million in the same quarter last year.

Tinder and Plenty Of Fish were behind the greatest growth in paid subscribers in the quarter. Tinder reported January 3 as the single busiest day in its three-year history, responsible for the highest volume of downloads and growth in active users.

Despite the existence of several major players in the dating app industry, Tinder is the clear leader. Deutsche Bank analyst Ross Sandler valued the company at $1.2 billion, and according to SEC filings from Match Group in November, Tinder boasts 9.6 million daily active users and 583,000 paid members.

Those solid numbers, along with Tinder’s commitment to regularly updating its product, mean the app is unlikely to be dethroned any time soon. Going forward into 2016, Match Group will likely continue to focus a substantial measure of its efforts into Tinder to maintain its top spot. For more information on Match Group dating services you can read our Match.com review, OkCupid review, and our Tinder dating app review.