Match Group has reported its financial results for the fourth quarter which exceeded analyst estimates. However, the outlook for 2021 is not as positive as first expected, which has led to the online dating company taking a hit in after-hours trading.
Total revenue for Q4 grew by 19% over the prior year quarter to $651 million, beating the average estimations by a couple of million dollars. It reported revenues of $2.4 billion across the whole year.
Adjusted EBITDA for the quarter also climbed 13% to $245 million. Average subscribers across all Match Group brands reached 10.9 million, marking the first time the number has crossed the eight-figure threshold.
The prediction for 2021 is total revenue of $2.75 billion to $2.85 billion. While this is just below Wall Street’s forecast of $2.84 billion, it was enough to see MTCH shares trading 6% lower after hours.
Match Group is experiencing longer lasting effects from COVID-19, as extended social-distancing measures in North America cause many singles to remain sceptical about dating at this time.
The business is still seeing positive growth in other markets around the world, as many countries appear to be coping better with the pandemic. There was a 14% increase in international subscriptions throughout Q4 compared to just 9% in North America.
Furthermore, Japan has emerged as Match Group’s second-highest grossing country, with revenue growing by 600% over the past five years.
In an accompanying letter to shareholders, CEO Shar Dubey explained that they will continue to innovate to produce products and features that go beyond “traditional profile discovery” for dating.
She explained: “As more of life moves online, we believe it creates opportunities to apply our expertise in making meaningful connections for dating to the growing space of online ‘social discovery’.”
A conference call to discuss the results and answer investor questions is due to be held today at 8:30am ET.
Read the full report here.