Match Group has published a positive earnings report for the first quarter, which includes an optimistic outlook for the rest of 2021.
Total revenue came in at $667.6 million, an increase of 22.5% compared to the same period last year. This figure comfortably beat the average analyst estimate by approximately $17 million.
The earnings per share of 57 cents also represented a year-on-year climb of 3.6% and surpassed analyst estimates which had set the bar at 40 cents.
Match Group is expecting the next few months will continue to be strong, with singles engaging in a “summer of love” and going on a string of offline dates after being vaccinated. The outlook for Q2 predicts total revenue to be between $680 and $690 million, which would mark a rise of around 25%.
CEO Shar Dubey concluded her quarterly letter to shareholders by saying: “Exiting the first quarter we are seeing improving trends across the portfolio. We are pleased with the way 2021 has begun and are optimistic that the rest of the year will continue this momentum.”
Investors are overall very bullish on this report and shares are trading 6% higher during the Nasdaq’s pre-market hours.
However, while this positivity around the end of the pandemic may ring true for certain countries like the US and UK, the dating company is under no illusions that it will be the same all around the world. Several major markets are experiencing devastating third waves and users in India, Japan and Brazil need to continue virtual dates for the foreseeable future.
Tinder remains Match Group’s flagship product and main source of revenue, individually growing by 18% this quarter. Its global users can expect to get a new feature later this month called ‘Vibes’, which will ask them a series of questions and display the answers on their profiles to help create connections with others who are on a similar wavelength.
Dubey also insisted that there will be a greater focus given to trust and safety. She promised that more than $100 million is going to be spent this year on “product, technology and moderation efforts related to trust and safety”.
Match Group outlined its plans to continue expanding into the ‘social discovery’ space, providing users with the ability to connect across the spectrum of dating, friendship and shared interests.
This will be driven in part by its live streaming product on Plenty Of Fish and the recent acquisition of Hyperconnect.
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