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Match Group (MTCH) to Post Q2 Earnings: What's in Store?

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Match Group (MTCH - Free Report) is slated to report second-quarter 2022 results on Aug 2.

The company expects second-quarter 2022 revenues to be $800-$810 million, indicating 13-14% growth from the prior-year quarter’s reported number.

The Zacks Consensus Estimate for revenues is currently pegged at $802.4 million, indicating an increase of 13.3% from the year-ago quarter.

For the second quarter, the Zacks Consensus Estimate for earnings has moved up 1.5% to 69 cents per share in the past 30 days.

The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average negative surprise being 42.3%.

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

Match Group Inc. Price and EPS Surprise

Match Group Inc. Price and EPS Surprise

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

Factors to Note

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

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

Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the first quarter, direct revenues from Tinder jumped 18% year over year. The total number of payers for Tinder rose 17% year over year to 10.7 million, driven by continued product momentum and the slower-than-expected rollout of an initiative to eliminate age-based discounts. Tinder RPP increased 1% in the first quarter.

The introduction of Tinder Lite, which intends to expand its international presence, has been acting as a key catalyst. Tinder has expanded its video in profile feature to more members globally. Videos within a Tinder profile allow members to express themselves better, discover more about others and find the right match.

In the first quarter, direct revenues from non-Tinder brands collectively increased 22% on a year-over-year basis. Non-Tinder brands witnessed 7% growth in the total number of payers to 5.6 million as well as a 14% increase in RPP. The trend is likely to have continued in the to-be-reported quarter.

The addition of à la carte features and price optimization for the Hinge app, higher premium subscription purchases at Tinder and OkCupid and increases in live video streaming for the Plenty Of Fish app might have been the key catalysts contributing to subscriber growth in the second quarter of 2022.

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

Hyperconnect continues to build momentum. Azar has seen recent success with the addition of live streaming video into the 1:1 video chat app. Hakuna’s partnerships with popular brands, including Hello Kitty and Tokyo Avengers, are expected to drive revenues and new user growth 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

Per our model, MRC Global (MRC - Free Report) , Alcon (ALC - Free Report) and Grocery Outlet (GO - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.

MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has an Earnings ESP of +30.27% and a Zacks Rank #1 at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MRC’s quarterly earnings is pegged at 25 cents per share, suggesting a whopping year-over-year surge of 212.5%. Its quarterly revenues are estimated to increase 23.4% year over year to $846.5 million.

Alcon has an Earnings ESP of +5.07% and a Zacks Rank #1. The company is scheduled to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.

For the second quarter, the Zacks Consensus Estimate for Alcon’s earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.

Grocery Outlet, has an Earnings ESP of +5.62% and sports a Zacks Rank #1. The company is slated to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.

The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Match Group Inc. (MTCH) - free report >>