The Covid-19 pandemic resulted in an increase in people looking for love on dating platforms such as Match Group’s Tinder app.
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Match Group shares tumbled 22% in extended trading on Tuesday after the dating site reported second-quarter revenue that missed analyst expectations and issued weaker-than-expected guidance.
Here’s how the company did.
- Revenue: $795 million vs. estimate of $804 million, according to Refinitiv
- Earnings: 52 cents per share
Match, whose properties include Tinder, OkCupid and Hinge, said revenue grew 12% from a year earlier.
In addition to trailing estimates for the second quarter, Match also gave a forecast for the third quarter of $790 to $800 million, which would result in no growth for the period and is well below analysts’ estimates. The company said its forecast includes a hit from foreign exchange rates.
Match said it saw weakness in its live streaming business and in Japan, which “has yet to show meaningful recovery following the lifting of Covid restrictions,” according to the shareholder letter.
The company also said that in the second half of 2021, its business benefited from the availability of Covid-19 vaccines and increased social activity.
“We are not seeing a similar surge of activity in 2022,” the company said.
The number of paid users increased 10% to 16.4 million, and revenue per payer rose 3% to $15.86.
Revenue at Tinder grew 13%. A litigation settlement related to Tinder led to a $441 million payment and negative free cash flow of $7 million.
Match’s stock price is down 42% of its value year to date, prior to the after-hours slump.
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