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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 slated to report third-quarter 2022 results on Nov 1.
The company expects third-quarter 2022 revenues to be $790-$800 million, indicating flat numbers year over year.
The Zacks Consensus Estimate for revenues is currently pegged at $793.03 million, indicating a decline of 1.1% from the year-ago quarter.
For the third quarter, the Zacks Consensus Estimate for earnings has moved south by 1.5% to 64 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 36.3%.
Let’s see how things have shaped up for the upcoming announcement.
Match Group’s third-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 post the COVID-19 crisis.
Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the second quarter, direct revenues from Tinder jumped 13% year over year. A litigation settlement related to Tinder led to a $441 million payment and negative free cash flow of $7 million.
In the third quarter, Tinder announced the relaunch of Desk Mode, a feature from Tinder that lets users swipe through Tinder from their desktop. The company surveyed 1,000 US online daters between the ages of 18 and 30. Of those, 30% swiped during a meeting, and 47% said that they would rather match and chat on company time. This is expected to have boosted active user growth in the to-be-reported 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 beginning of the third quarter, Hinge introduced the Dating Intentions profile feature that is designed to encourage users to be upfront about their expectations. Users can select from one of the following options: “life partner,” “long-term,” “long-term, open to short-term,” “short-term, open to long-term,” “short-term” and “figuring out my dating goals.”
The new feature will also allow users to add more context about their dating backstory to their profile via a new “Backstory” open-text option. The new Dating Intentions feature will allow users to focus on the right people and connect with those who share the same dating goals.
The addition of à la carte feature 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 third 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 steady growth with the addition of live streaming video into the 1:1 video chat app. Hakuna’s partnership 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 +0.28% but carries a Zacks Rank #4 (Sell) 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 worth considering, as our model shows that these have the right combination of elements to beat an earnings in their upcoming releases:
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. TME shares have lost 44.3% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.7%.
Upstart (UPST - Free Report) has an Earnings ESP of +114.71% and a Zacks Rank #3. UPST shares have lost 84.3% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 34.2%.
Image: Bigstock
Match Group (MTCH) to Post Q3 Earnings: What's in Store?
Match Group (MTCH - Free Report) is slated to report third-quarter 2022 results on Nov 1.
The company expects third-quarter 2022 revenues to be $790-$800 million, indicating flat numbers year over year.
The Zacks Consensus Estimate for revenues is currently pegged at $793.03 million, indicating a decline of 1.1% from the year-ago quarter.
For the third quarter, the Zacks Consensus Estimate for earnings has moved south by 1.5% to 64 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 36.3%.
Let’s see how things have shaped up for the upcoming announcement.
Match Group Inc. Price and EPS Surprise
Match Group Inc. price-eps-surprise | Match Group Inc. Quote
Factors to Note
Match Group’s third-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 post the COVID-19 crisis.
Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the second quarter, direct revenues from Tinder jumped 13% year over year. A litigation settlement related to Tinder led to a $441 million payment and negative free cash flow of $7 million.
In the third quarter, Tinder announced the relaunch of Desk Mode, a feature from Tinder that lets users swipe through Tinder from their desktop. The company surveyed 1,000 US online daters between the ages of 18 and 30. Of those, 30% swiped during a meeting, and 47% said that they would rather match and chat on company time. This is expected to have boosted active user growth in the to-be-reported 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 beginning of the third quarter, Hinge introduced the Dating Intentions profile feature that is designed to encourage users to be upfront about their expectations. Users can select from one of the following options: “life partner,” “long-term,” “long-term, open to short-term,” “short-term, open to long-term,” “short-term” and “figuring out my dating goals.”
The new feature will also allow users to add more context about their dating backstory to their profile via a new “Backstory” open-text option. The new Dating Intentions feature will allow users to focus on the right people and connect with those who share the same dating goals.
The addition of à la carte feature 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 third 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 steady growth with the addition of live streaming video into the 1:1 video chat app. Hakuna’s partnership 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 +0.28% but carries a Zacks Rank #4 (Sell) 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 worth considering, as our model shows that these have the right combination of elements to beat an earnings in their upcoming releases:
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. ZI’s shares have lost 28.8% in the year-to-date period compared with the Zacks Computer - Integrated Systems industry’s decline of 7.4%.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. TME shares have lost 44.3% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.7%.
Upstart (UPST - Free Report) has an Earnings ESP of +114.71% and a Zacks Rank #3. UPST shares have lost 84.3% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 34.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.