Shares of Match Group Inc. rose more than 10% in after-hours trading Tuesday after the online-dating company exceeded revenue expectations for its latest quarter and said that it would “accelerate” cost-control efforts.
The company posted net income of $129 million, or 46 cents a share, compared with $131 million, or 44 cents a share, in the year-earlier quarter. Analysts tracked by FactSet were expecting 50 cents a share in earnings.
also posted adjusted operating income of $284 million, nearly flat with the $285 million it logged a year before, while analysts were modeling $254 million on the non-GAAP metric.
Revenue rose to $810 million from $802 million, while analysts had been anticipating $793 million.
“While our subscription revenues overall remain relatively resilient, we have seen some impact from deteriorating macroeconomic conditions on brands like Plenty of Fish, which serves consumers with less discretionary income, and on à la carte…spending, which tends to be more discretionary than subscriptions,” the company said in its shareholder letter.
Match had 16.5 million payers in the third quarter, compared with 16.4 million payers in the second quarter. Revenue per payer was $16.02.
For the fourth quarter, Match executives anticipate $780 million to $790 million in total revenue, along with $270 million to $275 million in adjusted operating income. The FactSet consensus was for $809 million in revenue and $268 million in adjusted operating income.
They also provided a glimpse beyond 2022.
“In the current economic environment, visibility into 2023 performance is challenging,” Match executives added in the shareholder letter. “That said, we’re focused on delivering 5% to 10% revenue growth for the full year.”
They anticipate that year-over-year revenue growth will “accelerate gradually” as 2023 goes on. They also expect a 3-point headwind from foreign exchange for 2023.
“In addition to reigniting Tinder growth, in 2023 we plan to focus on targeted, high-returning investments, especially in Hinge and The League, as well as some newly-incubated apps where we see further opportunity to better serve select demographics and markets,” Chief Executive Bernard Kim said in the shareholder letter. “Because we expect a challenging operating environment for the foreseeable future, we plan to accelerate our efforts to control costs, especially in headcount-related expenses and marketing spend, in other areas of the business.”