Match Group (MTCH) to Post Q3 Earnings: What's in Store?
Match Group MTCH is slated to report third-quarter 2023 results on Nov 1.
Match Group expects third-quarter 2023 revenues of $875-$885 million, indicating 8-9% year-over-year growth.
The Zacks Consensus Estimate for revenues is currently pegged at $880.71 million, indicating growth of 8.79% from the year-ago quarter.
For the third quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 53 cents per share, which has remained unchanged in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average negative surprise being 8.47%.
Let’s see how things have shaped up for the upcoming announcement.
Match Group Inc. Price and EPS Surprise
Match Group Inc. price-eps-surprise | Match Group Inc. Quote
Factors to Note
Match Group’s third-quarter performance is likely to have benefited from continued momentum at Tinder and the solid performance of other apps like Hinge, Pairs and OkCupid.
Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the second quarter, direct revenues from Tinder were up 6% over the prior-year quarter to $474.7 million. Revenue per payer (RPP) rose 10% year over year to $15.12, driven by pricing optimizations and new weekly subscription packages.
Tinder’s ongoing marketing and product efforts are likely to have aided new user and reactivation trends, which are expected to have also contributed to improved revenue trends. In the second quarter, the company announced the re-launch of Desk Mode, a feature from Tinder that lets users swipe through the app from their desktops, presumably at the office and quickly hide activities if needed.
MTCH is persistently investing for the improvement of machine learning tools that can efficiently and proactively identify, prevent and eliminate spam across its worldwide collection of services.
In the second quarter, Hinge Direct revenues grew 35% year over year, with a 24% year-over-year increase in payers to 1.2 million and an 8% year-over-year increase in RPP to slightly above $25. This trend is likely to have continued in the to-be-reported quarter.
Hinge continues to grow in English-speaking markets as well as in its European expansion markets, which led to overall downloads growing nearly 50% year over year in the second quarter.
The launch of Archer, a social-first dating app for queer men, is expected to have gained popularity, thereby driving user growth in the to-be-reported quarter.
The acquisitions 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.
Hyperconnect continues to build momentum. Hinge rolled out a free-to-use and not-so-frequently asked questions feature in the app, which not only addresses questions around sexuality but also presents answers from leading LGBTQIA+ voices. This is likely to have attracted subscribers on its platform in the to-be-reported quarter.
What Our Model Says
Our proven model doesn’t predict an earnings beat for MTCH this time around. 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.
Match Group has an Earnings ESP of -0.75% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Per our model, NVIDIA Corporation NVDA, Palantir Technologies PLTR and Synaptics SYNA have the right combination of elements to post an earnings beat in their upcoming releases.
NVIDIA sports a Zacks Rank #1 and has an Earnings ESP of +6.93% at present. The company is scheduled to report third-quarter fiscal 2023 results on Nov 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same on one occasion, the average surprise being 9.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $3.34 per share, indicating a year-over-year increase of 475.9%. The consensus mark for revenues is pinned at $16.12 billion, suggesting a year-over-year surge of 171.7%.
Palantir carries a Zacks Rank #2 and has an Earnings ESP of +4.35% at present. The company is scheduled to report third-quarter 2023 results on Nov 2. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, with the average surprise being 2.1%.
The Zacks Consensus Estimate for Palantir’s third-quarter earnings is pegged at 6 cents per share, indicating a year-over-year improvement of 500%. It is estimated to report revenues of $555 million, which suggests an increase of approximately 16.1% from the year-ago quarter.
Synaptics is slated to report first-quarter fiscal 2024 results on Nov 9. The company has a Zacks Rank #2 and an Earnings ESP of +3.54% at present. Its earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 3.6%.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 38 cents per share, suggesting a decrease of 89.2% from the year-ago quarter’s earnings of $3.52. Synaptics’ quarterly revenues are estimated to decline 48.2% year over year to $232 million.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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