Tinder parent company has a strong quarter as more individuals pay to find the ideal match
Match Group surpassed quarterly revenue projections as more customers looking for matches and connections paid for Tinder subscriptions, driving the company's stock up 16% on Tuesday
Match Group surpassed quarterly revenue projections as more customers looking for matches and connections paid for Tinder subscriptions, driving the company's stock up 16% on Tuesday.
The figures are good news for the firm, which has been rocked this year by leadership changes and analyst concerns over the implementation of new features on its dating applications. Inflationary pressures have also put a damper on spending on its apps.
Despite the odds, the company's revenue for the three months ended September 30 was $810 million, exceeding the average analyst forecast of $793 million, according to Refinitiv data.
Tinder's income increased by 6%, while its paying users increased by 7%, thanks to the restoration of a function that allows users to swipe right and left from their computers. Tinder's revenue is expected to grow flat in the fourth quarter, according to the business.
In a letter to shareholders, Chief Executive Bernard Kim and Finance Chief Gary Swidler stated, "Product execution is already improving."
They did, however, warn that a weaker global economy was affecting Match's businesses that serve lower-income consumers, as well as discretionary spending across its applications.
Match intends to combat the decline by reducing headcount-related expenses and marketing investment, and it anticipates flat margins in 2023.
In extended trading, the company's shares were trading at $51.21. So far this year, they have down 66.1%.
Match forecasts fourth-quarter sales of $780 million to $790 million, compared to market estimates of $809.2 million, as it expects an additional $14 million hit from a stronger US currency than originally anticipated.
The firm also stated that a hunt for Tinder CEO was ongoing, as the role had been empty since Renate Nyborg's abrupt resignation in August.
(source : Reuters)
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