Estimated revenue for the group behind Tinder and Hinge, Match Group Inc, in the current quarter rose. The company increased its bet on its quarterly revenue as speedy vaccination and easing pandemic attract people to socialize.
The company puts its bet higher to $690 million from $680 million. The figure is 22% higher from a year prior, 3% higher from the initial prediction with a 22% incline. Accordingly, IBES data from Refinitiv showed the analysts’ estimates to range around $678.8 million.
The news pulled the shares for Match Group 6% higher in extended trading.
In comparison, Match Group presented a 23% jump to $668 million in total revenue for the first quarter. A quite significant difference to the estimated figure at $650.7 million. Tinder noted a 15% growth on average subscriber which led to an 18% revenue rise. Similarly, other brands saw a revenue rise of 30%.
Reuters further noted that Match Group’s average revenue per user inclined 9% with a 12% rise in total subscribers to 11.1 million. the company generated 17 cents more than expected with 57 cents earned on a per-share basis.
What’s behind the revenue incline
Match Group’s CEO Shar Dubey addressed the matter through a letter sent to shareholders. Quoted from Reuters, an excerpt of the letter said, “As we head into summer, with a growing number of people getting vaccinated, we cannot help but be excited … Looking forward to a summer of love”.
Additionally, accelerating re-openings in the United States, she said, drove growth at the company’s brands in the recorded quarter. Furthermore, starting as of last summer the tendency to pay increased across the portfolio as the months progressed.
The long pandemic has been keeping people off each other for over a year. This contributed to the fast-growing social discovery space to discover and connect people with each other. People have started to use similar platforms to gain more acquaintances, not necessarily for relationships.
Dubey further added that the post-pandemic recovery will likely take some time as different parts of the world suffer differently from COVID-19. India, Brazil, Japan and certain European markets, for example, are worsening.
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