Why Match Group Stock Surged Today
What happened
Shares of Match Group (NASDAQ: MTCH) popped more than 20% on Wednesday, following the release of the online dating specialist's second-quarter results.
So what
Match Group gained 503,000 subscribers for its popular Tinder dating app in the second quarter, besting Wall Street's expectations of 390,000 net additions. The company ended the period with more than 5.2 million Tinder subscribers, representing a year-over-year increase of 39%.
Tinder is igniting growth for Match Group. Image source: Getty Images.
That helped revenue rise 18% to $498 million, above analysts' estimates for $489 million. In turn, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 16% to $204 million. That, too, came in well above the consensus estimate for adjusted EBITDA of $193 million.
Now what
Investors were also pleased with third-quarter guidance. The company expects to generate revenue between $535 million and $545 million, while analysts had been expecting only $521 million.
Match Group also raised its full-year guidance for revenue, EBITDA, and average subscribers. The company said it now expects to add 1.6 million Tinder subscribers, up from a prior forecast of 1 million.
"Our Tinder business continues to grow meaningfully around the world, and we're investing to supplement that growth," CFO Gary Swidler said during a conference call with analysts. "We're taking steps across the portfolio to capture the large opportunity in Asia, and we're executing on our numerous strategic and product objectives. I am confident all of this puts us in a terrific position to continue to deliver solid financial performance for our shareholders."
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
