Match Group Surpasses Expectations With Strong Earnings, Tinder Drives Revenue Growth

In this photo illustration a Tinder logo seen displayed on a smartphone. Tinder saw a $475 million gain thanks to a 6% increase in direct revenue growthMATEUSZ SLODKOWSKI/SOPA IMAGES/LIGHTRICKET/GETTY IMAGES

Dating app company Match Group Inc on Tuesday issued an upbeat earnings print.

Tinder, its flagship dating platform, contributed to a 6% bump in direct revenue growth for a gain of $475 million.

Here’s what prominent analysts had to say about the stock, and what investors need to know about the print.

By The Numbers: The Dallas-based online dating giant issued second-quarter (Q2) earnings of 48 cents per share. Street estimates were at 45 cents.

In this photo illustration a Tinder logo seen displayed on a smartphone. Tinder saw a $475 million gain thanks to a 6% increase in direct revenue growth. MATEUSZ SLODKOWSKI/SOPA IMAGES/LIGHTRICKET/GETTY IMAGES 

Total revenues hovered at around $830 million, a 4% increase, ahead of the $811 million consensus estimate. 

Looking ahead, Match Group raised its third-quarter outlook, seeing revenues at a range between $875 million and $885 million.

Match Group owns Tinder, Hinge, The League, OkCupid, Plenty of Fish, Match.com, and more.

The KeyBanc Analyst: Match’s Q2 print and forward guidance beat expectations, and full-year 2023 margin commentary was revised positively.

However, Justin Patterson questioned updates on Tinder payer trajectories and potential cost savings from platform transitions in the next two years.

Patterson’s May rating on Match Group was Overweight, with a $60 price target.

The RBC Analyst: Brad Erickson set an Overweight rating on the stock, with a $60 price target. Erickson said Tinder’s turnaround story was the highlight this quarter, with its ad campaign and new weekly plans significantly driving pricing and better-than-expected net new payers.

The Truist Analyst: Youssef Squali reiterated a Hold rating, with a $42 price target on the stock. Squali noted that the company’s results exceeded Street expectations, with Tinder direct revenues up due to RPP acceleration and a decrease in Payers.

In this photo illustration a Tinder logo seen displayed on a smartphone. Tinder saw a $475 million gain thanks to a 6% increase in direct revenue growth MATEUSZ SLODKOWSKI/SOPA IMAGES/LIGHTRICKET/GETTY IMAGES 

Squali also highlighted Hinge’s performance, growing 35% in the second quarter, now boasting over 1.2 million net subscribers.

The analyst also shed light on Asia’s improving yet challenging market and the mixed performance of Evergreen & Emerging brands, saying that forward guidance beat expectations largely driven by expected growth in Tinder and Hinge.

 

Produced in association with Benzinga