Match Group, the parent company of some of the most popular online dating platforms, soared the most in nine months after quarterly earnings beat analysts’ estimates, boosted by new subscribers to Tinder.
Revenue rose 36% to $421.2m (€363m) in the second quarter, above the average forecast of $413.3m. The Dallas-based company had operating income of $150.2m, up 81% from a year earlier. Earnings were 45c a share, above projections for 32c.
Tinder, the app that made “swipe right” and “swipe left” to like or delete a potential partner part of the millennial vernacular, is the “growth engine” behind Match, chief executive Mandy Ginsberg said. Though the base app for Tinder is free, extra features cost money, helping boost direct revenue by 136% year-over-year in the quarter.
The app boasts more than 3.7 million subscribers, an 81% increase since the second quarter of 2017. Total subscribers across Match Group’s about 45 brands totaled 7.7 million for the three months to the end of June.
Based on such momentum, Match said it’s expecting as much as $440m in revenue in the current quarter. For the full year, Match raised the top end of its revenue range by $20m to as much as $1.72bn, largely driven by Tinder.
The app is expected to exceed $800m in revenue for 2018. Match Group also added to its portfolio, which includes the dating apps Plenty of Fish and OkCupid, in the second quarter. The company in June purchased a 51% stake in Hinge, which markets itself as a dating alternative for individuals seeking more serious relationships.
The contribution from Hinge may be “immaterial” now, but given that the user base has grown about 400% since September 2017, the platform could eventually be a “solid contributor” .