We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Match Group (MTCH) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Read MoreHide Full Article
Match Group (MTCH - Free Report) reported third-quarter 2023 earnings of 57 cents per share compared with 58 cents per share in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 7.55%.
Revenues of $881.6 million increased 9% year over year and beat the Zacks Consensus Estimate by 0.1%.
Match Group Inc. Price, Consensus and EPS Surprise
In the third quarter, the number of total payers decreased 5% year over year to 15.7 million. The figure missed the Zacks Consensus Estimate by 0.15%.
The number of total payers from America and Europe decreased 9% and 2%, respectively, whereas the Asia Pacific (APAC) witnessed a decline of 1% on a year-over-year basis.
Total revenues per payer (RPP) increased 15% year over year to $18.39. The figure beat the Zacks Consensus Estimate by 0.23%.
Region-wise, RPP increased 21% in America, 19% in Europe and decreased 4% in APAC on a year-over-year basis.
Direct revenues from the Americas were up 10% to $455.2 million. Direct revenues from Europe increased 17% to $252 million, while the same from APAC decreased 4% to $159.6 million.
Direct revenues from Tinder were up 11% year over year to $509 million. The figure beat the Zacks Consensus Estimate by 0.54%.
Tinder RPP rose 18% year over year to $16.28, driven by pricing optimizations and new weekly subscription packages.
Payers declined 6% year over year to 10.4 million, primarily because of pricing optimizations in the United States, which reduced conversion. Tinder saw an acceleration in subscription revenue growth throughout the quarter.
Hinge revenues surged 44% year over year to $107 million, with a 33% year-over-year increase in payers to 1.3 million and an 8% year-over-year increase in RPP to nearly $27. Hinge continued to grow in English-speaking markets, as well as in its European expansion markets, leading to overall downloads growing nearly 44% year over year in the third quarter.
Match Group Asia Direct revenues declined 5% year over year to $77 million, while Azar revenues increased 20% year over year, helping to partially offset ongoing weakness at Pairs and Hakuna.
Evergreen and Emerging revenues declined 3% year over year to $174.3 million.
Operating Details
Total operating costs and expenses (72% of revenues) increased 7% year over year to $638 million in the third quarter.
Adjusted operating income was $333.1 million, up 17% year over year, representing an adjusted operating margin of 38%, which expanded 270 basis points.
Balance Sheet
As of Sep 30, 2023, Match Group had a cash and cash equivalent and short-term investment of $713 million compared with $741 million as of Jun 30, 2023.
As of Sep 30, 2023, MTCH had a long-term debt of $3.9 billion, unchanged sequentially.
During the quarter ended Sep 30, 2023, the company repurchased 6.7 million shares of common stock for $300 million. As of Oct 31, 2023, $667 million in aggregate value of shares of Match Group stock remains available under the previously announced share repurchase program.
Guidance
Match Group expects fourth-quarter 2023 revenues in the range of $855-$865 million. Apart from adverse forex, the guidance assumes challenging macroeconomic conditions globally to hurt MTCH’s advertising business.
Tinder revenues are expected to grow 11%, driven by higher year-over-year growth in RPP, offset by a larger decline in the Payer base.
Adjusted operating income for the fourth quarter is anticipated in the range of $305-$310 million, indicating roughly 7-9% growth year over year. Operating margin is expected to be 36% at the mid-point of the range.
Zacks Rank & Stocks to Consider
Currently, Match Group has a Zacks Rank #3 (Hold).
Shares of Match Group have lost 16.6% compared with the Zacks Retail and Wholesale sector’s return of 11% in the year-to-date period.
Image: Bigstock
Match Group (MTCH) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Match Group (MTCH - Free Report) reported third-quarter 2023 earnings of 57 cents per share compared with 58 cents per share in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 7.55%.
Revenues of $881.6 million increased 9% year over year and beat the Zacks Consensus Estimate by 0.1%.
Match Group Inc. Price, Consensus and EPS Surprise
Match Group Inc. price-consensus-eps-surprise-chart | Match Group Inc. Quote
Quarter in Detail
In the third quarter, the number of total payers decreased 5% year over year to 15.7 million. The figure missed the Zacks Consensus Estimate by 0.15%.
The number of total payers from America and Europe decreased 9% and 2%, respectively, whereas the Asia Pacific (APAC) witnessed a decline of 1% on a year-over-year basis.
Total revenues per payer (RPP) increased 15% year over year to $18.39. The figure beat the Zacks Consensus Estimate by 0.23%.
Region-wise, RPP increased 21% in America, 19% in Europe and decreased 4% in APAC on a year-over-year basis.
Direct revenues from the Americas were up 10% to $455.2 million. Direct revenues from Europe increased 17% to $252 million, while the same from APAC decreased 4% to $159.6 million.
Direct revenues from Tinder were up 11% year over year to $509 million. The figure beat the Zacks Consensus Estimate by 0.54%.
Tinder RPP rose 18% year over year to $16.28, driven by pricing optimizations and new weekly subscription packages.
Payers declined 6% year over year to 10.4 million, primarily because of pricing optimizations in the United States, which reduced conversion. Tinder saw an acceleration in subscription revenue growth throughout the quarter.
Hinge revenues surged 44% year over year to $107 million, with a 33% year-over-year increase in payers to 1.3 million and an 8% year-over-year increase in RPP to nearly $27. Hinge continued to grow in English-speaking markets, as well as in its European expansion markets, leading to overall downloads growing nearly 44% year over year in the third quarter.
Match Group Asia Direct revenues declined 5% year over year to $77 million, while Azar revenues increased 20% year over year, helping to partially offset ongoing weakness at Pairs and Hakuna.
Evergreen and Emerging revenues declined 3% year over year to $174.3 million.
Operating Details
Total operating costs and expenses (72% of revenues) increased 7% year over year to $638 million in the third quarter.
Adjusted operating income was $333.1 million, up 17% year over year, representing an adjusted operating margin of 38%, which expanded 270 basis points.
Balance Sheet
As of Sep 30, 2023, Match Group had a cash and cash equivalent and short-term investment of $713 million compared with $741 million as of Jun 30, 2023.
As of Sep 30, 2023, MTCH had a long-term debt of $3.9 billion, unchanged sequentially.
During the quarter ended Sep 30, 2023, the company repurchased 6.7 million shares of common stock for $300 million. As of Oct 31, 2023, $667 million in aggregate value of shares of Match Group stock remains available under the previously announced share repurchase program.
Guidance
Match Group expects fourth-quarter 2023 revenues in the range of $855-$865 million. Apart from adverse forex, the guidance assumes challenging macroeconomic conditions globally to hurt MTCH’s advertising business.
Tinder revenues are expected to grow 11%, driven by higher year-over-year growth in RPP, offset by a larger decline in the Payer base.
Adjusted operating income for the fourth quarter is anticipated in the range of $305-$310 million, indicating roughly 7-9% growth year over year. Operating margin is expected to be 36% at the mid-point of the range.
Zacks Rank & Stocks to Consider
Currently, Match Group has a Zacks Rank #3 (Hold).
Shares of Match Group have lost 16.6% compared with the Zacks Retail and Wholesale sector’s return of 11% in the year-to-date period.
The Gap (GPS - Free Report) , Groupon (GRPN - Free Report) , and Walmart (WMT - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While The Gap sports a Zacks Rank #1 (Strong Buy), Groupon and Walmart carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of The Gap have gained 13.5% in the year-to-date period. The company is set to report third-quarter 2023 results on Nov 16.
Shares of Groupon have increased 49.1% year to date. The company is slated to report third-quarter 2023 results on Nov 9.
Shares of Walmart have gained 15.2% in the same time frame. The company is slated to report third-quarter fiscal 2024 results on Nov 16.