Match Group (MTCH +0.00%) reported second-quarter results on Aug. 1.
The world's leading provider of dating products delivered double-digit revenue growth, as more people searched for love using its popular apps.
It's not easy finding love, but Match Group's apps can help. Image source: Getty Images.
Match Group results: The raw numbers
|
Metric |
Q2 2017 |
Q2 2016 |
Year-Over-Year Change |
|---|---|---|---|
|
Revenue |
$309.6 million |
$275.3 million |
12% |
|
Operating income |
$83 million |
$77.5 million |
7% |
|
EPS from continuing operations |
$0.17 |
$0.14 |
21% |
Data source: Match Group Q2 2017 earnings press release. EPS = earnings per share.
What happened with Match Group this quarter?
- Revenue rose 12% year over year to $309.6 million, driven by a 15% jump in average paid member count (PMC) to 6.1 million.
- Tinder's average PMC surged 86% to more than two million.
- Average revenue per paying user (ARPPU), however, decreased 3% to $0.53, mostly due to the negative impact of foreign exchange on Match's international operations.
- EBITDA -- adjusted to exclude stock-based compensation expense, acquisition-related costs, and certain other items -- increased 8% to $109.9 million, as adjusted EBITDA margin declined to 36% from 37% in the year-ago quarter.
- All told, adjusted net income was flat year over year at $48.2 million, and adjusted EPS -- which was impacted by a higher share count -- fell 11% to $0.16 per share.
Greg Blatt is passing the CEO baton to Mandy Ginsberg. Image source: Getty Images.
Leadership changes
Match also announced that Mandy Ginsberg would succeed Greg Blatt as CEO on Jan. 1, 2018. Ginsberg is currently CEO of Match Group's Americas division.
Joey Levin, CEO of Match parent IAC, will succeed Blatt as chairman of Match Group's board of directors at that time, and Blatt will serve as vice chairman. Blatt will also stay on as CEO of Tinder until a replacement is found.
Said Blatt in a press release:
I'm handing over the reins at a time when the company is in a strong position, with Tinder having transitioned from a unique global phenomenon into a fully fleshed out company rocketing forward on firm footing, and our other businesses under excellent leadership with defined strategies to drive continued value creation. ... Match Group will be in the best of hands with Mandy Ginsberg, who was here on the day I arrived, and without whom many of the company's greatest successes would not have been possible.
Looking forward
For the third quarter, Match Group expects revenue of $322 million to $332 million, with adjusted EBITDA of $110 million to $115 million.
"As we look to the future, we have so much opportunity ahead," said Ginsberg. "Our apps have fostered millions of connections and relationships around the world, and we believe through continued product innovation we will create even more."
