Market Overview

Match Group Delivers Q3 Beat, But Guides Lower

Match Group Delivers Q3 Beat, But Guides Lower

Match Group Inc (NASDAQ: MTCH) reported its third-quarter results ahead of expectations, but seems to be headed toward a lighter end to the year, according to Nomura.

The Analyst

Nomura’s Mark Kelley maintained a Buy rating on Match Group with a price target of $88.

The Thesis

Match Group reported 22% year-on-year growth in total revenue for the third quarter, Kelly said in the note.

Revenue grew to $541.5 million, past the Street estimate of $540.7 million. This was driven by around 19% growth in total subscriptions and 4% growth in average revenue per user (ARPU).

North America direct revenue grew 15% year-on-year to $269 million, versus the consensus expectation of $267 million. Its International direct revenue rose 32% to $26 million, in-line with expectations.

The company also delivered an adjusted EBITDA beat at $206 million, versus consensus of $204 million. Tinder net adds came in at 437,000, while direct revenue from this platform grew 49%.

Match Group guided to revenue and adjusted EBITDA of $545-$555 million and $205-$210 million for the fourth quarter. The company’s full-year revenue remains on track for high-teens growth, Kelly mentioned.

He added that the implied adjusted EBITDA for the year is $770-$775 million, which is lower than the previous expectation of $770-$800 million, mainly due to incremental investment and expenses since the beginning of 2019.

Price Action

Shares of Match Group were down 3.85% to $66.96 at the time of publishing on Wednesday.

Related Link

Analyst: Snap, Twitter Off To Strong Starts In Q4

Latest Ratings for MTCH

Jan 2020DowngradesBuyNeutral
Jan 2020MaintainsOutperform
Dec 2019Initiates Coverage OnNeutral

View More Analyst Ratings for MTCH
View the Latest Analyst Ratings

Posted-In: Analyst Color Earnings News Guidance Reiteration Analyst Ratings Tech Media Best of Benzinga


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