Tinder Helps Match Group Beat Earnings Expectations

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Tinder Helps Match Group Beat Earnings Expectations
Tinder is Match Group Inc.’s highest performing subsidiary.

Dating app owner Match Group Inc. beat analyst expectations for the second quarter thanks to strong user growth at Tinder, the company’s highest performing subsidiary.

Match on Aug. 4 reported a 12% year-over-year increase in total revenue to $555 million for the quarter. It reported net earnings of $103 million, a 10% increase over the same period a year earlier.

West Hollywood-based Tinder saw direct revenue grow 15% year over year, driven by average subscriber growth of 18% as the unit reached 6.2 million paid users. Match did not disclose revenue and earnings for Tinder, which generated nearly half of the company’s revenue in 2019.

The app is one of eight dating services owned by Match, including OkCupid, Hinge and Pairs. The apps generate revenue from advertising and paid monthly subscriptions.

“As the pandemic took hold, we saw an increase in product usage, particularly among younger users and females,” Match Chief Executive Shar Dubey and Gary Swidler, the company’s chief operating officer and chief financial officer, said in a joint statement.

Match said it has seen subscription rates recover across its portfolio since May, with Tinder leading growth in international average subscribers. The company added that growth in average subscribers in North America was primarily led by Tinder and Hinge.

“Total daily messages sent across all of our products and daily average swipes at Tinder are higher today than they were at the end of February. The increased user activity reinforces that humans need to connect, and our products clearly fulfill that need,” Dubey and Swidler said.

Match predicted third-quarter revenue of $600 million or more, topping analysts’ estimates of about $575 million, according to Yahoo Finance.

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