Match Group Inc (MTCH) Average PMC Grows 18% in Third Quarter

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Match Group Inc (NASDAQ:MTCH) had a strong quarter that carried shares higher after hours Tuesday.

Match Group Inc (MTCH) The match-making website posted third-quarter adjusted earnings at 19 cents per share, which fell 17% year-over-year and missed the Wall Street consensus estimate. However, revenue rose 19% to $343 million, beating analysts’ projections.

A year ago, Match Group raked in $317 million in revenue and earned 23 cents per share. Analysts were calling for earnings of 22 cents per share for the period, along with sales of $330 million.

The company posted an average paid member count (PMC) that grew by 18%, thanks in part to the rise in popularity of Tinder. Match Group also experienced increased PMC stability at Match and OkCupid, which helped its North America numbers.

The company garnered a record 476,000 average PMC for the quarter, marking a year-over-year surge of 85%. The booming popularity of Tinder can be attributed to expanded access through the development of “growth product,” while Match Group also ramped up marketing technique such as new “Likes You” features.

Its margins were affected by $11 million of Tinder payroll taxes, while its operating income was affected by a $9 million hike in non-cash compensation related to Tinder, as well as a $5 million reduction in contingent consideration income.

For its fourth quarter of fiscal 2017, Match Group predicts that it will rake in between $355 million to $365 million, while its adjusted EBITDA is slated to be between $147 million and $152 million.

MTCH shares gained 5.9% after the bell Tuesday.


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