Match shares rise over 12% as online dating skyrockets

Shares of Tinder’s parent company, Match Group, jumped more than 12% on Wednesday after it said singles trapped at home turning to its apps for love had generated surprisingly high earnings.

The dating juggernaut – which also owns OKCupid, Hinge and Plenty of Fish – topped Wall Street forecasts for both earnings and revenue, making $ 103 million in second-quarter profit.

Tinder led the charge, growing 15% year-over-year thanks to an 18% increase in subscribers. The dating app added 200,000 users during the quarter, bringing the total to 6.2 million.

Shares of Match Group climbed Wednesday to close at $ 120.71, up 12.2%.

“Despite the pandemic, our user trends like engagement and willingness to pay for our products are on the rise,” said CEO Shar Dubey.

Match had revamped its video calling feature to increase usage during blockages and also offered free access to the ‘Passport’ feature on Tinder, which allows users to virtually switch locations and correspond with people around the world. .

This was the first earnings report since Match Group split from its parent company, Barry Diller’s IAC.

The company expects its lockdown-fueled growth to continue, forecasting third-quarter revenue of $ 600 million, beating analysts’ forecasts of $ 563 million.

In a note to investors, Jeffries analyst Brent Thill said the stock continues to be attractive because “people need to date them” and Match “is the only public game in town.”

“While the action may take a short-term hiatus given the recent run, we believe Match’s highly profitable business model and significant scale advantage will allow it to remain the industry leader,” he said. -he declares.

With post wires.

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