Match Group share price soars on Tinder strength, increased guidance
Match Group, the company behind popular online dating platforms like Match.com, PlentyOfFish, and Tinder, reported earnings last week that sent its share price through the roof. The company has a habit of impressing investors, and this quarter was no different, seeing Match beat the Street on a number of metrics, but this time around, it did even better than usual. For one thing, the company’s main cash cow (Tinder) is growing even bigger, and for another, it raised guidance on full-year revenue significantly. The result? A share price that increased by 32.35% in just five days!
Match Group’s share price was forced into the stratosphere last week!
SOURCE: Yahoo Finance
Match has been spending heavily in an effort to push Tinder out to emerging markets. That’s paying off. Now, the casual-dating app has an average of 3.8 million users – roughly half of Match Group’s total subscribers, which rose to new heights of 7.7 million.
The company’s second-quarter revenue jumped by 36% to $421 million, easily beating analysts’ predictions of $412.8 million, and its earnings came in at 41¢ per share. That’s significantly better than the Street predicted, at 35¢ per share.
On an earnings call, Match’s new CEO, Mandy Ginsberg, opened with a positive message that highlights how stupendously the company is growing. She said: “I want to begin by highlighting how truly exceptional our financial performance continues to be. I’ve been in this role for nearly eight months and it is really exciting to post the best first half performance in our history with 36% topline growth and 60% EBITDA growth. I’m proud of the team for all of the hard work they’ve put in, which has enabled us to achieve results that few other companies are able to match.”
Match increased guidance for its full-year revenue to between a range of $1.68 billion and $1.72 billion. Previously, the company had expected to return revenue in a range between $1.6 billion and $1.7 billion.
Dominion holds Match Group in its Global Trends Ecommerce Fund.
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