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Match Group (MTCH) to Post Q3 Earnings: What's in Store?

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Match Group (MTCH - Free Report) is set to report third-quarter 2021 results on Nov 2.

The company expects third-quarter 2021 revenues of $790 million to $805 million, indicating year-over-year growth of 23-26%.

The Zacks Consensus Estimate for revenues is currently pegged at $801.2 million, indicating an increase of 25.2% from the year-ago quarter.

For the third quarter, the Zacks Consensus Estimate for earnings has been steady at 60 cents per share over the past 30 days.

Match Group Inc. Price and EPS Surprise

Match Group Inc. Price and EPS Surprise

Match Group Inc. price-eps-surprise | Match Group Inc. Quote


The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing in one, the average surprise being 12.31%.

Let’s see how things are shaping up for this announcement.

Factors to Consider

Match Group’s third-quarter top line is expected to have benefited from continued momentum at Tinder and solid performance of other apps like Hinge, Pairs and OkCupid.

The company is seeing a rebound in propensity to pay, driven by robust uptake of video-enabled services to boost engagement amid the COVID-19 crisis.

Tinder is expected to have aided top-line growth in the to-be-reported quarter. In second-quarter 2021, direct revenues from Tinder jumped 26% year over year. The total number of payers for Tinder rose 17% year over year to 9.6 million, while Tinder RPP increased 8% year over year.

The introduction of Tinder Lite, with an aim to expand international presence, has been a key catalyst. Tinder has expanded its video in profile feature to more members around the world in additional countries across Europe, Asia, and Latin America. Videos within Tinder profile give members the ability to express themselves better, discover more about others and find the right match.

The addition of à la carte features and price optimization for the Hinge app, higher premium subscription purchases at Tinder and OkCupid as well as increases in live video streaming for PlentyOfFish app are expected to have been the key catalysts in driving subscriber growth in third-quarter 2021.

The acquisition of South Korea-based leading social discovery and video technology company, Hyperconnect, as well as of non-dating apps like Ablo, is expected to have aided international revenues in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Match Group has an Earnings ESP of 0.00% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

AMC Entertainment (AMC - Free Report) has an Earnings ESP of +6.69% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

Clarivate (CLVT - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #2.

Wesco International (WCC - Free Report) has an Earnings ESP of +7.87% and a Zacks Rank #2.