Shares of Match Group (MTCH) tumbled Wednesday after the company reported earnings and an outlook that came in below expectations amid the acquisition of Hyperconnect and higher investments. Match stock lost more than 7% just after the open.
XLate Tuesday, the provider of online dating services reported second-quarter results, and said earnings were 46 cents per share, up 28% from a year earlier. Revenue climbed 27% to $708 million, including the acquisition of Hyperconnect, Match said. Analysts expected Match earnings of 49 cents a share on sales of $689.4 million for the period ended June 30.
A year earlier, Match earnings were 46 cents on sales of $555.5 million.
Match stock fell 7.2% to 147.12 just after the market open on the stock market today.
Match Stock: Guidance Light
The company, which also owns the Tinder mobile app, said earnings before interest, taxes, depreciation and amortization, also known as EBITDA, rose 15% to $263 million. Analysts had projected EBITDA of $258.7 million. Tinder "direct" revenue rose 26% to $399 million, Match said.
For the September quarter, Match forecast revenue in a range of $790 million to $805 million, including roughly $55 million to $60 million from Hyperconnect. That topped estimates of $755 million. But excluding Hyperconnect, the company expects $735 million to $745 million in revenue, slightly below expectations.
The company also said it expects EBITDA in a range of $275 million to $280 million, below estimates of $284.3 million. Match has been investing in video streaming products amid the coronavirus pandemic.
Hyperconnect Acquisition Closed In June
Match closed the acquisition of South Korean mobile app maker Hyperconnect for $1.73 billion in June. Hyperconnect operates in the social media space.
Additionally, Match said it plans to operate Hyperconnect on a breakeven EBITDA basis in the second half of 2022.
Heading into the Match earnings report, Match stock had a Relative Strength Rating of 73 out of a possible 99, according to IBD Stock Check-Up. Match stock trades about 5% below an entry point of 168.31.
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Match Stock Falls As Earnings Miss Amid Acquisition, Higher Video Investments - Investor's Business Daily
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