The Classy Investors

  /  Stock   /  Match forecasts sales above estimates as pandemic boosts Tinder’s appeal

Match forecasts sales above estimates as pandemic boosts Tinder’s appeal

imageStock Markets7 hours ago (Aug 04, 2020 06:20PM ET)

(C) Reuters. Photo illustration of dating app Tinder shown on an Apple iPhone

(Reuters) – Match Group Inc (O:MTCH) forecast current-quarter sales above Wall Street expectations after beating quarterly estimates, as demand for its online dating app Tinder rebounded during the coronavirus lockdowns.

Tinder added about 200,000 users in the second quarter, taking its average subscribers to 6.2 million, as restrictions to stop the spread of the pandemic limited face-to-face meetings and encouraged more people to use dating apps as an alternative.

The numbers also allayed investor concerns over slowing growth at the company’s flagship product, sending shares 3.2% higher after the bell.

“Despite the pandemic, our user trends like engagement and willingness to pay for our products is up,” Chief Executive Officer Shar Dubey said.

Match had revamped its video calling feature to boost usage during lockdowns and also offered free access to the “Passport” feature on Tinder, which allows users to virtually change their location and match with people across the world.

The company expects third-quarter revenue of at least $600 million, above analysts’ estimate of about $575 million, according to Refinitiv IBES data.

Match-owned apps, including Hinge and OkCupid, dominated nearly 61% of the dating app market in the quarter, by measure of monthly active users, according to data from analytics firm Apptopia.

“As the pandemic took hold, we saw an increase in product usage, particularly among younger users and females,” the company said in its shareholder letter.

Total revenue rose 12% to $555.5 million in the second quarter, beating analysts’ average estimate of about $533.7 million.

Match forecasts sales above estimates as pandemic boosts Tinder’s appeal

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.