Match Group Inc (NASDAQ: MTCH) stock rose over 5.9% on 5th November, 2020 (as of 11:25 am GMT-5; Source: Google finance) after the company has beaten the revenue estimates as more users signed up on its app Tinder to meet new people in the midst of social distancing restrictions induced by COVID-19. Tinder, which is a major revenue generator for Match, added about 400,000 subscribers in the third quarter, taking its total average subscribers to 6.6 million and resulting its direct sales up 15% year-over-year. Tinder dominated the U.S. dating market with close to 5.1 million average daily active users and 3.9 million downloads during the third quarter, according to data from analytics firm Apptopia.
The company’s growth in North America subscribers came due to apps including Tinder, Hinge, BLK and Chispa, while international subscribers mainly signed up on Tinder. The average subscribers on Match’s apps, which also include OkCupid and Plenty of Fish, rose 12% to 10.8 million during the third quarter. Overall, Net earnings attributable to Match shareholders rose to $132.6 million from $128.5 million, a year earlier. At the end of September 30, 2020, the company had $399 million in cash and cash equivalents and $3.5 billion of long-term debt, including $1.7 billion of Exchangeable Senior Notes. The Company’s $750 million revolving credit facility was undrawn as of September 30, 2020.
MTCH in the third quarter of FY 20 has reported the adjusted earnings per share of 15 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported the adjusted revenue growth of 18 percent to $639.8 million in the third quarter of FY 20, beating the analysts’ estimates for revenue of $605.1 million, according to IBES data from Refinitiv.
Moreover, the company posted the Operating income of $200 million, which is an increase of 14% over the prior year quarter, which resulted an operating margin of 31%. The company posted the Adjusted EBITDA of $249 million, which is an increase of 21% over the prior year quarter representing an Adjusted EBITDA margin of 39%. Non-Tinder brands collectively grew Direct Revenue 23% year-over-year, on the back of growth in ARPU of 13%, Average Subscribers of 7%, and contributions from non-subscriber one-to-many video revenue, which got launched earlier this year. The company has generated 11% increase in the year-to-date operating cash flow and free cash flow to $519 million and $486 million, respectively.