Match Group Inc. surged after the company reported revenue that beat analysts’ estimates, buoyed by growth at its biggest dating property, Tinder.
(Bloomberg) — Match Group Inc. surged after the company reported revenue that beat analysts’ estimates, buoyed by growth at its biggest dating property, Tinder.
Second-quarter revenue increased 4% to $830 million, with direct revenue from Tinder up 6% to $475 million, the company said in a statement. Analysts were expecting revenue of $811 million. The company also raised its third-quarter outlook, projecting revenue of $875 million to $885 million.
“Due to Tinder’s growth and revenue acceleration — that surpassed even our own expectations — we’re very pleased to be able to report a record-setting quarter,” said Chief Executive Officer Bernard Kim. “We’ve turned a corner and the rebound is underway.”
The shares rose more than 11% in extended trading after closing at $46.15 in New York. They have gained 11% so far this year. Rival dating site Bumble Inc. gained about 4%.
Match, which also owns dating apps Hinge and OkCupid, rolled out price increases on Tinder in the US in the first quarter and in some international markets in the second quarter to drive revenue growth. The number of paying Tinder users declined 4% from a year earlier to 10.5 million as a result. But the site saw a pickup in subscription revenue throughout the quarter and said a marketing campaign helped boost growth.
Match has taken recent steps to gain an even bigger share of the online dating market. It launched Archer, an app geared toward gay, bisexual and queer men, in June, and last year acquired invite-only app The League, which is aimed at career-minded individuals. The Dallas-based company has also launched a global brand campaign that has led to new user sign-ups and account reactivations in the US and has particularly resonated with women.
In the second half of the year, Tinder is seeking to cater more directly to the dating expectations of Gen-Z through features such as conversation starters that “enable deeper self-expression” throughout the dating process. Tinder is also on track to launch its high-end membership experience in early fall.
Earnings per share were 48 cents, compared with a loss of 11 cents a year earlier.
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