© Reuters Match Group posts record Q3 revenues but shares plunge 7% on disappointing guidance
(Updated – November 1, 2023 7:19 AM EDT)
Match Group (NASDAQ:) reported its Q3 results, with EPS of $0.57 coming in better than the consensus estimate of $0.53.
Revenue grew 9% year-over-year to $882 million, beating the consensus estimate of $879.9M, representing its strongest quarterly revenue in the company’s history.
For Q4/24, the company sees revenues at $855-$865M, missing the consensus estimate of $896M.
As a result, shares fell 9.1% in early Wednesday trade.
Tinder’s Q3 direct revenue increased 11% year-over-year to $509 million, driven by a continued tailwind from U.S. pricing optimizations and weekly subscription packages. As a result, RPP (revenue per payer) grew 18% year-over-year to $16.28, partially offset by a 6% decline in payers to 10.4M, primarily due to the expected impact of U.S. price optimizations on conversion.
Hinge direct revenue increased 44% year-over-year to $107M, with payers up 33% to 1.3M and RPP up 8% to nearly $27.
Analysts from Citi commented:
“Much hinges on the Tinder app refresh that will roll out by year-end and the accompanied marketing campaign, but as management awaits more indications, the initial 2024 outlook for Tinder is below the Street. Hinge continues to outperform, however, remaining a bright spot.”
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