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A blowout earnings report helped the dating app specialist outperform the market last month.
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Match Group (MTCH +0.00%) gained 13% last month, well outperforming the broader market as the S&P 500 fell 2%, according to data provided by S&P Global Market Intelligence.
The August rally added on to what has been a good year for shareholders in the tech stock, who are up roughly 100% so far in 2019.
Image source: Getty Images.
August's gains were propelled by a second-quarter earnings report that was met with cheers on Wall Street. In that announcement, the dating app specialist said its Tinder application gained just over 500,000 subscribers, beating expectations, and helping push revenue up 18% for the period. Adjusted earnings also landed well ahead of targets.
Match Group management issued an aggressive outlook for the current quarter based on its view that Tinder's momentum will continue. Looking further out, executives are excited about the potential of their platform in new international markets and among different demographics. But perhaps the most impressive metric in last month's report was the 6% increase in average revenue per user. That gain suggests the company could become far more profitable as it begins monetizing its rapidly expanding user base.