Match Group Delivers Q4 Results with Cautiously Optimistic Projections for 2021

Match Group shared its fourth quarter earnings this week, offering investors some cautious optimism on what to expect in 2021. 

Last year the company saw record highs in new users and activity, but faced with economic recessions and a global pandemic, revenue growth remained uncertain. The company delivered slightly better than expected results for the last quarter of 2020, with revenue of $651.4 million for the quarter, up from $547.2 million. Analysts had been projecting $649 million according to Market Watch. Match Group also reported net income of $140.6 million, up from $94.7 million this time last year. 

The forecast for 2021 was measured but optimistic. The company expects revenue of $2.75 billion to $2.85 billion for this year, along with “strong growth” from its star app and cash cow Tinder as well as apps like Hinge that have seen a dramatic increase in users over the past year. 

Match Group said it will be investing in “product development, geographic expansion, and safety features on its apps” according to Market Watch. In 2020, following reports of vulnerabilities in regard to user safety on its app, Match Group hired an executive to head safety and security along with a task force to incorporate new practices and processes into policies and product design.

In the earnings report, Match Group’s performance varied by region, notably influenced by the number of COVID-19 cases from country to country. For example, the company said first-time subscriber data was “meaningfully impacted” for some of its apps in the UK, but not as much in Japan where the pandemic was managed more effectively with fewer people getting sick. Match Group maintained that it is still seeing “strong first-time subscriber growth” regardless.

India was also negatively impacted by the pandemic, but the company pointed to the country’s recent recovery as a sign that it expects more subscribers going forward.

Tinder generated about $1.4 billion in revenue in 2020, up 18% from 2019. Non-Tinder brands also performed well, particularly Hinge, with full-year revenue up threefold and global downloads up a whopping 63% compared to 2019. 

“We believe this is only the beginning of a long growth trajectory for the brand,” the company said in its shareholder letter. “Pairs, Chispa and BLK were also bright spots, as was the video live-streaming business at PlentyOfFish, which burst onto the scene at exactly the right time. OkCupid continued its expansion into new markets and Meetic hit its highest number of average subscribers in the last five years.”