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Match Crashes on Huge EPS, Outlook Miss; Analysts Surprised by Tinder Developments

Stock Markets Aug 03, 2022 08:30
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By Senad Karaahmetovic

Shares of Match Group (NASDAQ:MTCH) are down over 22% in premarket trading after the company’s Q2 EPS and guidance for Q3 revenue missed consensus estimates.

Match Group reported Q2 adjusted EPS of -11c, well below the consensus projection of 58c per share. Revenue stood at $794.5 million, below the analyst consensus of $804.1 million. Match Group reported 16.4 million total payers, while analysts were expecting 16.5 million.

For Q3, the company said it expects revenue to be in the range of $790 million to $800 million, widely missing the expectations of $883.6 million. MTCH estimates Q3 adjusted operating income to be in the range of $255 million to $260 million.

Match Group said it expects muted top-line growth in the second half of the year. Moreover, it anticipates limited improvement for YoY top-line growth rates in the fourth quarter.

Moreover, Match said it needs “some time for the new Tinder team to improve execution and see how they deliver on their product roadmap”. As a result, Tinder Coins and virtual goods initiatives are paused with the Tinder CEO Renate Nyborg departing the company.

A JPMorgan analyst is disappointed with Match’s results as they proved to be “not as resilient as hoped”.

“MTCH 2Q results were fine, but the 2H outlook implies revenue growth of ~8% Y/Y in 2022—a much bigger reset than expected... Based on our calculations & some assumptions, we estimate MTCH 2022 Revenue downgrades are likely to be in the ~6% range,” he wrote in a note.

A Goldman Sachs analyst said the results were “mixed and largely below investor expectations”.

Match Crashes on Huge EPS, Outlook Miss; Analysts Surprised by Tinder Developments
 

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