- Total revenue was $794.5 million, below the consensus estimate of $804.33 million.
- Adjusted operating income gained 9% to $286 million.
- Tinder’s direct revenue surged by approximately 13% in Q2.
Match Group stock plunged by 20% after publishing a Q2 earning per share of 11c, 68c less than the analyst estimate of 57c. The quarter saw total revenue at $794.5 million, below the consensus prediction of $80.4.33 million.
Moreover, the second quarter’s total revenue surged 12% from the same Q the past financial year. Its $217 million intangible impairment related to the hyperconnect agreement drove the $10 million operating loss.
The firm’s adjusted operating income was $286 million, a 9% surge from the same quarter during the previous financial year. Payers surged to 16.4 million from 15 million, a 10% uptick.
Also, Tinder’s direct revenue increased by approximately 13% from the previous year’s second-quarter number. The 14% Payers increase drove the upswing.
Meanwhile, all other brands within the Match Group canopy registered a total direct revenue increase of nearly 12% Y/Y. the RPP’s 5% surge to 5.5 million and 2% Payers increase drove this.
Operating and free cash flows remained negative at $20 million and $7 million, respectively. The approximately $441 million litigation settlement for Tinder catalyzed these numbers.
The letter to stakeholders from the company’s CEO Bernard Kim and the COO Gary Swidler revealed that the officials spent the previous two minutes visiting their offices in Paris, New York, Seoul, Dallas, Vancouver, and LA to interact with teams within the organization.
They added that Match Group boasts a brighter future, regardless of the work the firm needs to do. The CEO and CFO confirmed having an experienced international team and lucrative business with more growth opportunities in the future.
Match Group anticipates Q3 2022 revenues to hover at $790 – $800 million, suggesting flag figures Y/Y. Moreover, it expects third-quarter adjusted operating income to stand at $255 – $260 million.
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