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Key Takeaways
- Match Group shares slipped Thursday morning as revenue projections for the fourth quarter fell short of estimates.
- The owner of Tinder, Hinge, and other dating services beat profit estimates for the third quarter.
- However, the company said revenue from Tinder was below expectations and said some new features negatively impacted subscription revenue.
Shares of online dating giant Match Group (MTCH) tumbled Thursday morning despite a third-quarter earnings beat released after the bell Wednesday.
The company, which operates a number of online dating services like its namesake Match, Hinge and OkCupid, posted $895.48 million in revenue for the quarter, up slightly year-over-year but less than the $901.15 million analysts had expected.
Net income, however, came in above estimates compiled by Visible Alpha at $136.48 million, but that was down about 17% from the same time last year.
The largest miss, however, was in the company’s projections for fourth quarter revenue, which analysts expected to come in around $904.24 million, while Match Group said it expects revenue between $865 million to $875 million.
Revenue and downloads of Hinge continued to grow, but Match said Tinder Direct revenue came in below its own expectations, as the app’s monthly active users (MAUs) declined 9% from the same time last year and its revenue per payer (RPP) grew less than expected. Some new features tested with Tinder users in the quarter negatively impacted subscription revenue, which the company said will likely also have an impact on fourth quarter revenue.
Match Group was down about 17% in early morning trading.