Tinder owner’s shares surge over 12 percent as online dating soars amid COVID-19 pandemic – New York Post
Shares of Tinder’s parent company Match Group surged more than 12 percent Wednesday after it said stuck-at-home singles turning to its apps for love have fueled surprisingly strong earnings.
The dating juggernaut — which also owns OKCupid, Hinge and Plenty of Fish — beat Wall Street’s forecasts for both earnings and revenue, raking in a $103 million profit in the second quarter.
Tinder led the charge, with 15-percent growth year-over-year thanks to an 18-percent jump in subscribers. The dating app added 200,000 users in the quarter, bringing the total to 6.2 million.
Match Group shares on Wednesday soared to close at $120.71, up 12.2 percent.
“Despite the pandemic, our user trends like engagement and willingness to pay for our products is up,” CEO Shar Dubey said.
Match had revamped its video calling feature to boost usage during lockdowns and also offered free access to the “Passport” feature on Tinder, which allows users to virtually change their location and match with people across the world.
It was the first earnings report since Match Group spun off from its parent company, Barry Diller’s IAC.
The company expects its lockdown-powered growth to continue, forecasting third-quarter revenue of $600 million, beating analyst forecasts of $563 million.
In a note to investors, Jeffries analyst Brent Thill said the stock continues to be attractive, as “people need to date” and Match “is the only public game in town.”
“While the stock may take a short-term breather given the recent run, we believe Match’s highly profitable business model and significant scale advantage will