Match Group has reported better than expected financial results for the second quarter, as lockdown restrictions caused by the pandemic drove new users to its platforms.
Total revenue grew by 12% year-on-year to just over $555 million. This was aided by the company adding almost one million more paying subscribers across its portfolio.
Furthermore, Adjusted EBITDA was reported as $228 million, an increase of 13% over the previous year quarter.
At the beginning of the COVID-19 pandemic Tinder lost a significant number of premium members, despite overall user activity growing sharply. This was largely due to people using dating apps to find human connections and combat boredom, while not wishing to pay a subscription fee in the face of economic uncertainty.
However, the latest figures show that Match Group saw a steady recovery throughout the quarter and the rate of first-time subscribers are now more than 15% higher than pre-COVID levels.
The recovery has been a lot stronger in North America and Western Europe than the rest of the world because some major markets, especially India, are still severely struggling from the effects of COVID-19.
Match Group is predicting Q3 revenue will exceed $600 million, over $50 million higher than current Wall Street estimations.
CEO Shar Dubey concluded her accompanying letter to shareholders by saying: “As we look ahead, we have a phenomenal portfolio of businesses addressing the fundamental human need for connections.
“We believe we have new growth vectors emerging in video-enabled and live experiences, both one-to-many and one-to-one, which we expect to develop over the coming years.”
Read more here.