It seems like
may soon have the whole world swiping right.
On Tuesday, the leading online match maker reported a stellar second quarter, beating Wall Street’s estimates and guidance on both sales and adjusted earnings before interest, tax, depreciation and amortization. Its Tinder app, focused on young adults, helped drive total subscribers above analysts’ estimates, sending the stock up more than 18% in after-hour trading.
Tinder continues to grow at a near-record pace, adding more than half a million subscribers in the quarter—the second highest sequential increase in quarterly subscribers in the app’s history. The company said it now expects to add 1.6 million Tinder subscribers in 2019, up from last quarter’s estimate of more than 1 million, boosted by more than 400,000 expected additions in the third quarter.
Match also continues to be focused on international expansion after announcing in April it would restructure its leadership team to add three general managers in Asia. The company said it made a majority investment in Egypt-based dating app Harmonica, geared toward the underserved Muslim community—nearly a quarter of the world’s population.
Other promising non-U.S. markets include Japan and India. Match says it leads the market in Japan. Quarterly app downloads of its Tinder and Pairs apps grew 60% and 33%, respectively, during the past year in Japan. And Match’s OkCupid is gaining strength in India, where the company says it is now the fourth most-downloaded dating app. Competition in the still nascent Indian market is fierce with competitor Bumble launching there last fall after partnering with actress Priyanka Chopra. Match’s Tinder, meanwhile, is the No. 1 most-downloaded dating app in India, according to App Annie.
As the result of a solid quarter, Match raised full-year estimates for both revenue growth and earnings before interest, tax, depreciation and amortization. Match’s stock already was up 73% this year, fetching just under all-time highs of 38 times forward price to earnings. With Tinder beating expectations and continuing investments in international markets expected to ignite further growth, though, that premium seems justified.
Some flames are just too hot to die.
Write to Laura Forman at email@example.com
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