INSUBCONTINENT EXCLUSIVE:
Facebook Dating is no challenger to Tinder-owner Match Group (NASDAQ: MTCH), which posted third-quarter earnings per share of 44 cents on
Tuesday.
The company, which owns several brands of internet dating services, including Tinder, Hinge, Ok Cupid and PlentyOfFish, surpassed
analyst forecasted revenue of $437 million, reporting Q3 revenue of $444 million, a 29 percent increase year-over-year.
Match says it
expects to bring in a total of $1.72 billion in annual revenue.
Despite positive earnings, the company 4Q outlook failed to satisfy Wall
Match said it expects between $440 and $450 million in revenue in Q4, falling short of the$454.5 million analystestimate.Shares of Match
sank 10 percent in after-hours trading as a result.
Year-to-date, Match stock is up roughly 60 percent.
Tinder, the location-based mobile
dating application, continues to be Match growth engine, responsible for roughly half its paid users and half its projected annual
revenue.Match total number of paid subscribers came in at 8.1 million, up from 7.7 million in Q2 and a 23 percent increase YoY
Much of that growth comes from Tinder Gold, Tinder premium subscription tier thatletsusers see who already liked them without doing any
Overall Tinder paying user base is up to 4.1 millionfrom 3.8 million the previous quarter.
Tinder is expected to bring in $800 million in
revenue in 2018.
Hinge, another app-based dating service acquired by Match in June, is on its way up
Match says it seen a 5x increase in downloads since it first invested.
Tinder Gold, which lets you see who has liked you, launches today in
U.S.
Match also announced that it would, for the first time, issuea special cash dividend of $2.00 per share on Match Group common stock
and Class B common stock, to be paid out on Dec
19.
Match continues to be on the prowl for strategic MA opportunities, said its chief executive officer Mandy Ginsberg in a statement
&[We]
have the financial flexibility to acquire companies when we find innovative products with long-term potential,& she said.
The company has
reportedly attempted to acquire Tinder-competitor Bumble on more than one occasion, though the nasty legal battle playing out between the
dating powerhouses makes that combination unlikely
Most recently, Bumble said it was dropping its $400 million lawsuit against Match,which had claimed Match fraudulently obtained trade
secrets during acquisition talks
Bumble may refile that suit at the state level.
Dallas-based Match is owned by IAC, which will itself report earnings tomorrow after the
closing bell.
Bumble drops its $400M lawsuit against Match, but this battle isn&t over
