Shares of Match Group Inc. (MTCH, Financial) soared 19.06% to $88 in after-hours trading Tuesday after beating second-quarter earnings estimates by 3 cents. Match Group issued earnings per share of 43 cents, reflecting a 4% decrease year-over-year.
Revenue totaled $497.97 million, which was an 18.2% increase from the prior-year quarter. It exceeded expectations by $9.01 million.
Investors were looking for gains in the following metrics of the Dallas-headquartered provider of dating sites worldwide through a portfolio of brands such as Tinder, Match, Meetic and others.
The 18% year-over-year gain in second-quarter average subscribers to 9.1 million resulted from strong 40.5% growth in Tinder average subscribers to 5.2 million. Tinder average subscribers was 10.7% up sequentially. Tinder is one of the most downloaded and used dating application in the world, according to the company's website.
The company measured average revenue of 58 cents per user metric, up 2%, throughout its entire business and of 56 cents per user metric, up 1%, in the international business.
Moreover, operating income increased 15% to $173 million and adjusted Ebitda went up 16% to $204 million. Year-to-date operating cash flow declined 4% to $232.6 million, and year-to-date free cash flow dropped 7% to $211.9 million.
For the current quarter, Match Group forecasted revenue of $535 million to $545 million versus estimates of $520.97 million and Ebitda of $200 million to $205 million. The company anticipated to hit more than 400,000 additions in Tinder subscribers during the second quarter.
For full 2019, the company lifted its revenue growth guidance to a range of 17-19% from the previous 16% and it predicted Ebitda of $770 million to $800 million compared to the previous range of $740 million to $790 million. The company expects to add, on average, more than 1.6 million Tinder subscribers in 2019.
As of June 30, 2019, the balance sheet of Match Group had $266 million cash and equivalents, and $1.6 billion in long-term debt.Â
The stock was around $73.9 per share at close on Tuesday for a market capitalization of approximately $20.8 billion. The share price increased 62% over the past year through Aug. 6 to above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $33.3 to $79.3.
The 14-day relative strength indicator of 50 suggests the stock is neither overbought nor oversold.
Wall Street issued an overweight recommendation rating and an average target price of $71.18.
Disclosure: I have no positions in any securities mentioned.
Read more here:Â
Polyus Records 50% Growth in Net ProfitÂ
Shake Shack Beats Analysts' Revenue Estimates
Analysts Recommend These 2 Falling KnivesÂ
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
