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Match Group (MTCH) to Post Q1 Earnings: What's in Store?

Match Group MTCH is slated to report first-quarter 2022 results on May 4.

The company expects first-quarter 2022 revenues between $790 million and $800 million, indicating year-over-year growth of 18-20%.

The Zacks Consensus Estimate is currently pegged at $796.58 million, indicating an increase of 19.32% from the year-ago quarter.

For the first quarter, the Zacks Consensus Estimate for earnings has been steady at 67 cents per share in the past 30 days.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 45.65%.

Let’s see how things are shaping up for the upcoming announcement.

Factors to Note

Match Group’s first-quarter performance is likely to have benefited from continued momentum at Tinder and solid performance of other apps like Hinge, Pairs and OkCupid.

The company has been witnessing a rebound in the propensity to pay, driven by a robust uptake of video-enabled services to boost engagement amid the COVID-19 crisis.

Match Group Inc. Price and EPS Surprise

Match Group Inc. Price and EPS Surprise
Match Group Inc. Price and EPS Surprise

Match Group Inc. price-eps-surprise | Match Group Inc. Quote

Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the fourth quarter of 2021, direct revenues from Tinder jumped 23% year over year. The total number of payers for Tinder rose 18% year over year to 10.6 million, while Tinder RPP increased 4% in the fourth quarter.

The introduction of Tinder Lite, which intends to expand its international presence, has been acting as a key catalyst. Tinder has expanded its video in profile feature to more members globally. Videos within Tinder profile allow members to express themselves better, discover more about others and find the right match.

Direct revenues from non-Tinder brands collectively increased 26% on a year-over-year basis. Non-Tinder brands witnessed 9% growth in the total number of payers to 5.7 million and a 16% increase in RPP. The trend is likely to have continued in the to-be-reported quarter.

The addition of à la carte features and price optimization for the Hinge app, higher premium subscription purchases at Tinder and OkCupid and increases in live video streaming for the Plenty Of Fish app might have been the key catalysts contributing to subscriber growth in the first quarter of 2022.

The acquisition of South Korea-based leading social discovery and video technology company, Hyperconnect and non-dating apps like Ablo might have aided international revenues in the to-be-reported quarter. In the fourth quarter, growth was strong in all geographies, up 10% year over year in both the Americas and Europe and 36% in APAC and others, aided by the acquisition of Hyperconnect.

Key Q1 Highlights

In March, Match Group announced that Garbo's new online background check platform will be made available to the general public in the United States and will also be launched to Tinder members via Tinder's Safety Center, marking a first-of-its-kind partnership for the dating industry.

Previously, Match Group had announced a significant contribution to Garbo to help the non-profit organization accelerate its growth and adoption across the technology industry.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Match Group has an Earnings ESP of -9.87% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

AutoNation AN has an Earnings ESP of +2.68% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Costco Wholesale COST has an Earnings ESP of +1.39% and a Zacks Rank #2.

FIGS FIGS has an Earnings ESP of +7.14% and a Zacks Rank #2.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AutoNation, Inc. (AN) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Match Group Inc. (MTCH) : Free Stock Analysis Report

FIGS, Inc. (FIGS) : Free Stock Analysis Report

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