Match Group (NASDAQ: MTCH) reported first-quarter results on May 2. The parent company of Tinder and Match.com saw its revenue and earnings boosted by strong international member growth.
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Match Group results: The raw numbers
Data source: Match Group Q1 2017 earnings press release.
Image source: Getty Images.
What happened with Match Group this quarter?
- Revenue rose 15% year over year to $299 million, fueled by 30% growth in Match Group's international direct revenue.
- Average paid member count (PMC) grew 16% to 5.9 million, with North America PMC rising 7% to 3.4 million and international PMC surging 33% to 2.4 million.
- Tinder added 227,000 paid members, bringing its average PMC to nearly 1.9 million, up from 915,000 at the end of the Q1 2016.
- Average revenue per paying user (ARPPU) was down less than 1% to $0.53, as a 2% increase in ARPPU in Match Group's North America segment was offset by a 2% decline in international ARPPU.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) -- adjusted to exclude stock-based compensation expense, acquisition-related costs, and other special items -- jumped 28% to$86 million.
- Adjusted EBITDA margin improved to 29%, up from 26% in the prior-year quarter, as a larger proportion of Match's revenue continues to shift toward brands with lower marketing requirements.
- All told, adjusted net income increased 17% to $36 million, or $0.12 per share.
New share repurchase program
Match Group's board of directors authorized a stock buyback program of up to 6 million shares of Match's stock. CFO Gary Swidler commented on the share purchases during a conference call with analysts:
Swidler did, however, note that he still expects Match Group's public float to increase over the course of this year, despite this new share repurchase program.
Match Group expects second-quarter revenue of $303 million to $313 million, with adjusted EBITDA of $102 million to $107 million.
Management also left its 2017 full-year guidance unchanged, which incudes revenue of $1,260 million to $1,305 million and adjusted EBITDA of $450 million to $470 million.
"Match Group is off to a solid start in 2017. Strong paid user growth continues, and we're making meaningful progress on our product and marketing strategies," Chairman and CEO Greg Blatt said in a press release. "We're on track to have a strong year."
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