Match Group keeps looking for love in all the right places. The continued growth of its popular digital dating brands, including Tinder, sent the company’s shares soaring in after-hours trading on Tuesday following better than expected quarterly results.
The Dallas-based company behind matchmaking names like Tinder, OKCupid and Match.com said that revenue rose 36 per cent year-on-year to $461m in the three months ended June 30. It credited the advance to a 27 per cent increase in average subscribers and 8 per cent growth for average revenue per user.
One of its most prominent brands, Tinder — which popularised the swipe-right, swipe-left method of sorting potential matches — saw a total of 3.8m subscribers in the second quarter, up 299,000 from the first quarter of 2018 and 1.7m from a year ago.
Net earnings attributable to shareholders advanced 150 per cent from the year-ago quarter to $133m, or 45 cents a diluted share.
Analysts had been looking for $413m in sales and $92m in net income, or 32 cents a share, according to Factset estimates.
Match Group has benefited from the increasing popularity of online dating, both on websites and mobile apps. It recently added to its stable of brands with the purchase of a majority stake in Hinge, a dating app popular with millennials.
However, its leading position has come into question in recent months, after social network Facebook said it was planning to get into the dating game, an announcement that sent Match Group shares tumbling.
After gaining 83.1 per cent in 2017, Match Group shares are up 24 per cent so far this year. They climbed another 13.6 per cent after the results were released on Tuesday evening.
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