Match Group Inc. (NASDAQ:MTCH) is, without a doubt, king when it comes to digital romance. At a time when most businesses are crumbling owing to COVID-19 shocks, its core business continues to grow at an impressive rate. A solid third-quarter report all but affirms why the stock is powering up high the charts and flirting with record highs.
Solid Q3 Growth
Revenue and earnings growth are some of the factors that continue to strengthen the stock’s sentiments in the market. The growth can be attributed to Tinder, which is the company’s biggest moneymaker. The popular mobile dating app continues to attract more users in the U.S and Europe, all but strengthening Match revenue run rate.
Match also boasts of a diversified revenue stream thanks to a diversified footprint of dating apps, PlentOfFish Match.com, Hinge, and OkCupid all but continue to strengthen Match.com edge as a leader in digital romance.
Conversely, it does not come as a surprise that the company posted an 18% increase in revenue in the third-quarter that came in at $640 million. The company’s flagship app, Tinder, registered a 15% direct revenue growth attributed to a 16% average subscriber growth.
Subscription Growth
Non-Tinder apps delivered a 23% increase in direct revenue attributed to a 13% increase in average revenue per user. Operating income was up 14% to $200 million as Match.com ended the third quarter with a solid balance sheet with operating and free cash flow of $519 million.
Match is benefiting from robust growth in North America, driven by robust subscriber growth in Tinder Hinge and Chispa. On the international scene, the dating company also continues to register robust international subscriber growth In Tinder and Meetic.
Amid the social distancing policies put to curb the coronavirus's spread, Match should continue to register growth in subscriptions in its app as people resort to socializing online. Business growth should accelerate once the virus related pressures subside.