Match Group ( MTCH ) December-quarter revenue outlook topped views, owing to Tinder Gold, sending shares surging despite a miss on third-quarter earnings.
[ibd-display-video id=2533216 width=50 float=left autostart=true]The provider of online dating services has been investing in older, subscription-based websites and said Tuesday that adjusted third-quarter earnings were 19 cents a share, down 17% from a year ago, missing estimates. Revenue rose 19% to $343 million, above expectations. A year earlier, Match earned 23 cents a share on sales of $317 million. Analysts expected Match to report earnings of 22 cents on sales of $330 million for the period ended Sept. 30.
Match forecast December-quarter revenue of $360 million at its midpoint of guidance vs. estimates of $347.5 million. Match said it expects Tinder's average revenue per user to go up, owing to "Tinder Gold" upgrades.
Match has been developing paid versions of Tinder, originally a free mobile app. In September, Match rolled out Tinder Gold, a premium service.
The Tinder Gold subscription costs $5 more than Tinder Plus, which varies in price based on region, age and subscription length. Tinder Plus costs $9.99 for one month for U.S. users under 30.
Match has named a new CEO as of Jan. 1
Media mogul Barry Diller's IAC/InterActiveCorp .[ticker symb=IAC ] spun off Match Group in 2015. IAC consolidates the online dating firms' financial results. IAC reports earnings late Wednesday.
Shares in Match ended the regular trading day down 3.1% to 26.90, but turned around to gain 5.6% to 28.40 in after-hours trading on the stock market today .