What happened
Shares of Match Group Inc. (NASDAQ: MTCH) , a leading provider of dating brands -- including Tinder, Match, and PlentyOfFish, among others -- were flying 18% higher as of 2:27 p.m. EDT on Wednesday after the company released strong second-quarter results.
So what
Revenue soared 36% during the second quarter to $421.2 million, topping analysts' estimates calling for $413.3 million. Adjusted EBITDA jumped 60%, compared to the prior year, driven by a 620 basis point improvement in adjusted-EBITDA margin. Earnings per share checked in at $0.45, well above analyst calls for $0.32.
CEO Mandy Ginsberg said in a press release:
Now what
Tinder now boasts more than 3.8 million subscribers, a giant 81% increase compared to the prior year's second quarter. For context, Match Group's total subscribers across all brands are 7.7 million. Although the Tinder app is free, users can pay for extra features, and it's proven to be an excellent growth engine for the company.
In fact, CFO Gary Swidler said Tinder is on pace to exceed $800 million in revenue this year after being monetized for less than four years. Management bumped up full-year revenue guidance from a previous range of $1.6 billion to $1.7 billion, to a range between $1.68 billion and $1.72 billion.
10 stocks we like better than Match Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Match Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Match Group. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
