Match Group Stock Rises After First Quarter Earnings Report

Online dating company Match Group’s stock rose after details of its first quarter earnings report were announced. Shares were up 5.3 percent to $146.30 according to recent trading reports.

Barron’s reported that Match Group posted revenue of $668 million for the quarter, up significantly from original Wall Street forecasts of $650.7 million. And profits were also up 57 cents a share, higher than the expected 40 cents per share. Match Group owns a range of popular dating apps, including Tinder, OkCupid, Plenty of Fish, and Hinge as well as niche apps like BLK and OurTime.

Tinder is still the star of Match Group’s offerings and its main revenue stream, with 18 percent growth in revenue for the dating app. However, Match Group noted that it has seen 30 percent growth in the rest of its business. Notably, some of its lesser-known apps like Hinge are seeing a surge of growth as the company invests more in its other offerings, too.

Subscribers rose 11.2 percent to 11.1 million in the first quarter according to Barron’s, and average revenue was up 9 percent. 

Match Group Chief Executive Shar Dubey noted that revenue varies globally. While Tinder saw an increase in overall revenue for the app, it was impacted by the pandemic in terms of global a la carte revenue. She said in a statement: "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 a la carte revenue in several regions."

The company has invested heavily in India, which has been hit hard by the pandemic in recent weeks. 

For the second quarter of 2021 Match Group analysts forecasted revenue of $681 million, raising expectations slightly higher than previous estimates of $679 million. 

Tech Crunch noted that engagement on the Tinder app for the first quarter of this year also surpassed pre-pandemic numbers. Daily swipes were up 15 percent and messages were up 19 percent. And thanks to Tinder’s new features to drive engagement, conversations were 32 percent longer compared to before Covid lockdowns. Tinder will be launching a new feature called Vibes in May to further drive user engagement on its app.

Dubey also said in the earnings letter to shareholders that it is confident about its projections for the rest of 2021. “As we head into summer, with a growing number of people getting vaccinated, we cannot help but be excited about the future.”