What happened
Shares of Match Group Inc. (MTCH +0.00%), a leading provider of dating brands -- including Tinder, Match, and PlentyOfFish, among others -- were flying 18% higher as of 2:27 p.m. EDT on Wednesday after the company released strong second-quarter results.
So what
Revenue soared 36% during the second quarter to $421.2 million, topping analysts' estimates calling for $413.3 million. Adjusted EBITDA jumped 60%, compared to the prior year, driven by a 620 basis point improvement in adjusted-EBITDA margin. Earnings per share checked in at $0.45, well above analyst calls for $0.32.
Image source: Getty Images.
CEO Mandy Ginsberg said in a press release:
We are off to the best start to a year in the company's history, and remain focused on execution and delivering results. Tinder's product and revenue momentum are exceptional. We are progressing with our product road map across our brands, innovating new brands and adding strategic acquisitions where we see opportunity.
Now what
Tinder now boasts more than 3.8 million subscribers, a giant 81% increase compared to the prior year's second quarter. For context, Match Group's total subscribers across all brands are 7.7 million. Although the Tinder app is free, users can pay for extra features, and it's proven to be an excellent growth engine for the company.
In fact, CFO Gary Swidler said Tinder is on pace to exceed $800 million in revenue this year after being monetized for less than four years. Management bumped up full-year revenue guidance from a previous range of $1.6 billion to $1.7 billion, to a range between $1.68 billion and $1.72 billion.
