Match Shares Plunge More Than 20% After Online Dating Company Misses on Revenue and Forecast

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Match Shares Plunge More Than 20% After Online Dating Company
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Introduction

Online Dating Company Match Group Inc. (Nasdaq: MTCH) reported a drop in revenue, but it’s expecting to return to growth next quarter. Shares fell more than 20% during after-hours trading Tuesday after the company missed analysts’ revenue expectations for the second quarter. The company reported revenue of $488 million on Tuesday well below analysts’ expectations of $496.2 million. The stock fell as much as 26% after hours following the announcement before recovering slightly from its low point of around $56 per share early Wednesday morning.”

Match Group

Stock price fell more than 20% during after-hours trading Tuesday after the company missed analysts’ revenue expectations for the second quarter. Match Group’s stock price fell more than 20% during after-hours trading Tuesday after the company missed analysts’ revenue expectations for the second quarter.

Match, which owns dating services Tinder, Hinge, and OkCupid, reported revenue of $488 million on Tuesday. Analysts had projected $489 million in sales for that period. The company’s earnings per share came in at $0.12, slightly below forecasts of $0.13 per share from analysts polled by Refinitiv consensus estimates tracker Consensus Metrix.

Dating Services Tinder

Match, which owns Dating Services Tinder, Hinge, and OkCupid, reported revenue of $488 million on Tuesday — well below analysts’ expectations of $496.2 million.

Which owns online dating services Tinder, Hinge and OkCupid among others, reported revenue of $488 million on Tuesday — well below analysts’ expectations of $496.2 million.

Match shares fell more than 20% during after-hours trading Tuesday after the company missed analysts’ revenue expectations for the second quarter.

The company also lowered its revenue forecast for full-year 2019 from $1.95 billion-$1.97 billion to $1.92 billion-$1.93 billion.

Shares of Match Group Inc. fell more than 20% during after-hours trading Tuesday after the online dating company missed analysts’ revenue expectations for the second quarter.

“We’re disappointed in our results,” Mandy Ginsberg, CEO of Match Group Inc., said in a statement Tuesday evening.

Match Group’s stock was down about 25% to $12.80 per share as of 8:15 p.m. ET Tuesday — well below its closing price of $17 on Monday afternoon and one hour before earnings were released.

“The Total Number of Subscribers in the Quarter was 5.5 Million net

Match Group Inc. (MTCH) shares plunged more than 20% in early trading Monday after the online dating company missed analysts’ revenue expectations for the second quarter and lowered its revenue forecast for full-year 2019 from $1.95 billion-$1.97 billion to $1.92 billion-$1.93 billion, citing weaker-than-expected average revenue per user growth.

The total number of subscribers in the quarter was 5.5 million net new subscribers, down from 6 million in 2018’s first quarter despite launching Tinder Select late last year, which offers exclusive features like “Tinder Premium,” according to Chief Executive Mandy Ginsberg during a conference call with analysts Monday morning. adds, a decline from the 7 million we saw in Q2 2018,” said CEO Shar Dubey on Tuesday’s earnings call.

Match Shares Plunge More Than 20% After Online Dating Company

Online Dating Company

Addressing the company’s premium product offerings, Dubey said that Match Group has been pleased with the performance of its new Tinder Gold and Match Plus offerings. “Match, a decline from the 7 million we saw in Q2 2018,” said CEO Shar Dubey on Tuesday’s earnings call.

Match Group’s year-over-year growth rate for paid users from January to March was just 2%, down from 5% in Q4 2018.

The number of Tinder Gold subscribers increased 43% year-over-year but declined 27% sequentially due to seasonality during the first quarter, according to Match Group CEO Shar Dube. “Tinder Gold subscriber adds were up 43% year-over-year but down 27% sequentially due to seasonality during the first quarter,” he said on Tuesday’s earnings call with investors after reporting fourth quarter earnings results.” She added that growth in paid memberships was largely driven by Tinder Gold and OkCupid’s

A-List New Premium Product Offerings. – Online Dating Company 

Tinder Gold subscriber adds were up 43% year-over-year but down 27% sequentially due to seasonality during the first quarter.

“Gold” is an upgrade that lets users pay $4.99 per month for perks like seeing. Who like them before they swipe, unlimited likes and no ads. Tinder A-List subscribers pay $9.99 per month for the same thing plus access to exclusive events. Exclusive stories and special badges on. Their profiles that show off their status as “A-Listers.”

The company also said it has more than 150 million active users worldwide. At any given time, with over 3 billion matches happening every day. Though that doesn’t mean everyone on Tinder finds a match; some have had more luck than others: Dubey said during the earnings call with investors. Adding that Tinder Gold subscriber adds were up 43% year-over-year but down 27% sequentially due to seasonality during the first quarter

In the earnings call with investors, Dubey said during. The earnings call with investors, adding that Tinder Gold subscriber adds. Were up 43% year-over-year but down 27% sequentially due to seasonality during the first quarter.

Match Group’s stock price fell more than 20% during after-hours trading. Tuesday after the company missed analysts’ revenue expectations for the second quarter.

Overall People are Starting to Prefer Free Services like Facebook and Snapchat Instead of Paid Dating Apps

The company, which operates the Match and Tinder dating platforms, reported a quarterly loss of $1.5 million on Friday and said revenue would be lower than expected.

The shares fell more than 20% in premarket trading on Monday to $6.10, extending losses since July to almost 40%.

The results show that there are more people using free dating apps instead of paid dating apps. People are also starting to prefer free services like facebook and snapchat. Instead of Paid Dating Apps because those services are free. “We believe that the shift from an app-based ecosystem to a mobile-first. World has negatively impacted our business model,” Match chief financial officer Anthony DiMarco wrote in a letter explaining. Why the company missed its top line forecast for the third quarter by about $40 million. “Our core consumer is not comfortable with paying for these services at this point in time,” he added. “I think it was just tough for them [Match] because. They didn’t have enough scale,” Piper Jaffray analyst Michael Olson told. Reuters after speaking with investors following Friday’s release of Match’s earnings report

Conclusion – Online Dating Company 

Match Group’s stock price fell more than 20% during after-hours trading. Tuesday after the company missed analysts’ revenue expectations for the second quarter. The company also lowered its revenue forecast for full-year 2019 from $1.95 billion-$1.97 billion to $1.92 billion-$1.93 billion.

“The total number of subscribers in the quarter was 5.5 million net adds. A decline from the 7 million we saw in Q2 2018,” said CEO Shar Dubey on Tuesday’s earnings call. She added that growth in paid memberships was largely driven by Tinder Gold and OkCupid’s A-List new premium product offerings.”

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