Singles continue to pay up for online dating features during the COVID-19 crisis, helping Match Group Inc. exceed expectations for the third quarter with its financial results and its Tinder subscriber growth.
Shares were up 3.4% in after-hours trading Wednesday.
The company reported net income of $132.1 million, or 45 cents a share, compared with $108.5 million, or 52 cents a share, in the year-earlier quarter. Analysts surveyed by FactSet were projecting 40 cents a share in earnings.
which owns a portfolio of dating brands including Hinge, OkCupid and Tinder, posted adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $249.2 million for the quarter, up from $205.2 million a year prior. Analysts tracked by FactSet were expecting $221 million.
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Revenue for the period grew to $639.8 million from $541.5 million, while analysts had been projecting $606 million.
“Western market businesses have performed extremely well despite the COVID challenges, while some developing markets, several of which have been hard hit by the pandemic, are recovering more slowly,” the company said in its shareholder letter.
Match’s Tinder brand had 6.6 million subscribers on average in the September quarter, up from 6.2 million in the June quarter. Match disclosed that Tinder’s direct revenue rose 15%, while the average revenue per user slipped 1%.
Analysts tracked by FactSet were modeling 6.47 million Tinder subscribers.
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Across the broader company, Match had 10.8 million subscribers on average, compared with 10.1 million in the June quarter and 9.6 million a year earlier. The FactSet consensus was for 10.5 million.
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Match shares have risen 20% over the past three months as the S&P 500
has gained 4.3%.