Match Group Set to Report Q2 Earnings

By Denny Jacob

Match Group is gearing up to release its second-quarter earnings on Tuesday after the market closes. Let's dive into what you should know about this online dating company.

REVENUE

According to FactSet, Match Group is anticipated to report $811.4 million in revenue for the quarter, reflecting growth from the year-ago period's $794.5 million.

ADJUSTED EARNINGS

FactSet reveals that analysts expect Match Group to announce adjusted earnings of 67 cents per share, as compared to 89 cents per share in the same quarter last year.

NET INCOME

In a significant turnaround, Match Group is projected to report $138.6 million in net income, a substantial shift from the $31.9 million loss recorded in the previous year's quarter.

WHAT TO WATCH

Here are a few key areas to keep an eye on during Match Group's earnings announcement:

ARCHER: The New Dating App

Match Group is expected to provide more insight into its newest dating app, Archer, which launched in June. Archer caters to gay, bisexual, and queer men and is currently available in the New York City area. Investors might be interested in understanding how Archer's standalone app caters specifically to this demographic, especially considering Match Group's existing apps like Tinder and Hinge that also serve a similar audience.

TINDER: Assessing the Marketing Campaign

Match Group may disclose findings from its recent marketing campaign for Tinder. The company initiated a global effort to reshape the dating app's brand perception, moving away from relying solely on word of mouth. Investors will be particularly intrigued by how well Tinder has resonated with Gen Z, a vital demographic that businesses are vying to engage and cultivate loyalty.

GUIDANCE: Any Changes?

Keep an eye out for any updates or modifications to Match Group's guidance. In May, the company expressed confidence in achieving double-digit growth in total revenue and Tinder's direct revenue by 2023. However, lower-than-expected performance in the first half of the year might impact growth rates, potentially aligning them closer to the lower end of the previously stated 5% to 10% year-over-year range.