The coronavirus pandemic and social distancing haven't deterred the desire for companionship, and may have even accelerated it. Match Group (NASDAQ:MTCH) reported second-quarter earnings that beat analyst expectations on the top and bottom lines as it reached 10 million subscribers across all of its properties.
Since people are now much less likely to meet in bars, clubs, and other traditional venues (even the opportunity for office romances was quashed by stay-at-home orders), turning to the internet seems a natural recourse.
Loving this growth
Match reported that revenue rose 12% to $555 million, beating Wall Street's consensus forecast of $520 million. And profits of $103 million, or $0.51 per share, a 13% gain, came in nicely ahead of expectations of $0.45 per share.
While people initially hunkered down during the early days of the pandemic when we were supposed to flatten the curve of COVID-19's spread for just two weeks, as the lockdown orders extended to months, they apparently sought out amorous interaction again.
The online dating leader said total daily messages sent across all of its products, and daily average swipes at its leading dating site Tinder, are higher today than they were at the end of February.
CEO Shar Dubey and chief operating officer Gary Swidler said in a statement: "Since early May, we have seen a recovery in propensity to pay across the portfolio. Increases in both subscriber conversion and [average revenue per user] led to year-over-year revenue growth for almost all of our major brands in the second quarter."
They also noted that for the first time since 2016, non-Tinder properties posted their second consecutive quarter of year-over-year direct revenue growth.
Match also completed its previously announced spin-off from IAC/Interactive on June 30.