Match Group (NASDAQ: MTCH), a leading provider of dating products available globally, has experienced a notable 5.4% increase in its share price since its last earnings report a month ago, outpacing the S&P 500. This growth is attributed to the company’s impressive first-quarter earnings for 2024, which saw a 4.8% increase in earnings per share from the previous year to 44 cents, and a 9% rise in revenues year-over-year to $859.65 million. The success of its popular dating apps, Tinder and Hinge, played a significant role in this performance, particularly in the Americas and Europe.
Despite the overall positive revenue growth, Match Group faced challenges with a 6% year-over-year decrease in the total number of payers to 14.93 million, slightly missing the Zacks Consensus Estimate. However, the company managed to significantly increase its total revenues per payer (“RPP”) by 16% year-over-year to $18.87. This was partly due to Tinder’s direct revenues growing by 9% year-over-year to $481.5 million, despite a 9% decline in the number of Tinder payers, which was attributed to pricing optimizations affecting conversion rates. Conversely, Hinge showcased exceptional growth, with a 50% surge in revenues to $123.75 million and a 31% increase in payers year-over-year.
The company’s operating costs and expenses rose by 15% year-over-year, resulting in a slight contraction in the adjusted operating margin to 33%. Despite this, Match Group ended the quarter with a strong cash position of $921 million and continued to return value to shareholders by repurchasing 5.6 million shares of common stock for $197.6 million. Looking forward, Match Group anticipates second-quarter 2024 revenues to be between $850 million and $860 million, indicating a modest year-over-year growth of 2% to 4%. The company expects Tinder’s direct revenues to show minimal growth, while projecting a significant 38% to 44% year-over-year increase in Hinge’s direct revenues.
However, the company’s stock recently saw a decrease of 1.28% to $31.61, with fluctuations between $31.34 and $32.02 during the trading session. Over the past year, MTCH’s shares have experienced highs and lows, trading as high as $49.24 and as low as $27.655, reflecting the volatile nature of the market. With a current market capitalization of approximately $8.4 billion and a trading volume of 967,980 shares, Match Group remains a significant player in the online dating industry. Despite the positive performance, the downward trend in investor and analyst sentiment, as indicated by a Zacks Rank #3 (Hold), suggests caution about the stock’s future performance, highlighting the competitive and ever-changing nature of the online dating market.
To view the full press release, visit https://ibn.fm/KJpT5
About Match Group
Match Group, through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Its global portfolio of brands includes Tinder(R), Hinge(R), Match(R), Meetic(R), OkCupid(R), Pairs(TM), PlentyOfFish(R), Azar(R), BLK(R), and more, each built to increase its users’ likelihood of connecting with others. Through the company’s trusted brands, it provides tailored services to meet the varying preferences of its users. Match Group’s services are available in over 40 languages to users all over the world.
About TechMediaWire
TechMediaWire (“TMW”) is a specialized communications platform with a focus on pioneering public and private companies driving the future of technology. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, TMW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, TMW brings its clients unparalleled recognition and brand awareness. TMW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from TechMediaWire, text “TECH” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.TechMediaWire.com
Please see full terms of use and disclaimers on the TechMediaWire website applicable to all content provided by TMW, wherever published or re-published: https://www.TechMediaWire.com/Disclaimer
TechMediaWire
Los Angeles, CA
www.TechMediaWire.com
310.299.1717 Office
[email protected]
TechMediaWire is powered by IBN