Match Group has released its first financial results of 2020 which have given a good indicator as to how the online dating company is operating during the coronavirus outbreak.
Total revenue has grown by 17% over the previous year quarter to $545 million, while adjusted EBITDA also increased 11% to $172 million.
Match Group is still moving in the right direction but the rate of growth was slower than earlier Wall Street estimations.
This is largely due to Tinder, its flagship product, only adding 100,000 premium members over the past three months, despite the number of daily ‘swipes’ increasing by 37% and reaching an all-time high.
At the beginning of April, Match Group CEO Shar Dubey noted in a public letter that the acquisition of subscribers had slowed, especially in areas most affected by the pandemic like continental Europe.
A spokesperson added in a statement alongside the Q1 financial report: “The virus has had a number of effects on our business, including…higher levels of engagement among users of our products to make virtual connections, increased acceptance of video chat for dating, and lower levels of new users signing up and propensity to pay.”
Match Group has already begun to release video dating products across its portfolio. A live streaming feature was added to Plenty of Fish midway through March and Match.com launched private video calls a month later.
It was also announced today that Tinder will be getting a one-to-one video call feature at some point during Q2. Initial details are very limited but a tough moderation process may be necessary because of the dating app’s negative ‘hookup’ reputation.
An update was also provided on the proposed separation from IAC, which is still on schedule to close before the end of Q2. IAC will be publishing its own financial results ahead of the markets opening tomorrow.
Match Group’s stock price has seen an approximate 5% increase in price following the release, meaning the company now has a market cap of just under $24 billion.
Find the full financial report here.