The Match Group has continued to see very strong revenue growth in the second quarter of 2016, despite the fact that its paid subscriber increase fell just short of analyst expectations.
Yesterday, the Match Group released its financial results for Q2 of 2016, announcing a 21% increase in revenue compared to the year before, hitting $301m.
This was led by a 23% increase in revenue growth from dating, which rose from $223m to $275m.
Match Group subscriber growth
The revenue growth was thanks to a 30% increase in average paying subscribers to 5.3m.
And as with its Q1 results, Match Group once again saw big gains from international markets outside the US, registering a 40% international revenue growth to $93m, and the number of international paid subscribers increasing 46% to 2m.
Match Group CFO Gary Swidler said Tinder was a massive contributor to the quarter, the app seeing “a lot of growth internationally”, especially in markets like India.
And Tinder now has over 1.23m paid subscribers, registering an increase of 209,000 compared to the previous quarter.
Analyst estimates for Q2
Although it is another strong set of financial results for the dating giant, the company’s shares fell 5.2% to $15.78 after the report was released yesterday.
This could be because the company was just shy of analyst estimates of total paid subscribers hitting 5.4m, likely because it registered a massive 36% increase in its average paid member count in Q1, driven by the acquisition of PlentyOfFish and growth of Tinder Plus.
However despite falling slightly short in terms of PMC, the company’s revenue growth to $301m exceeded analyst expectations of $295m.
Mobile shift slowing
Interestingly, in its investor presentation, Match Group revealed it has noticed the shift from desktop to mobile slowing over the past few years.
The dating giant said that in terms of registrations, it saw a 7% increase in sign ups on mobile compared to the year before – with 26% of registrations taking place on desktop, and 74% on mobile.
As the graph below shows, this is a much smaller shift towards mobile compared to previous years.
Speaking about the company’s Q2 results, Match Group Chairman and CEO Greg Blatt said: “Q2 showed solid performance, with 23% Dating revenue growth, operating income of $74 million and total Adjusted EBITDA of over $100 million.
“We continue to execute against our plan, with exceptional growth at Tinder and solid performance by Meetic, Match and PlentyOfFish.”
Although the Match Group’s dating properties account for 90% of its revenue, it does have non-dating businesses like the Princeton Review and Tutor.com, whose revenue for the quarter fell very slightly to $25.8m.
Check out the full set of results here.