Match Group (MTCH): Weak Dating Rev Growth Guidance Trumps Solid Results - UBS

UBS analyst, Eric Sheridan, reiterated his Buy rating on shares of Match Group (NASDAQ: MTCH) after the company reported total Q2 2016 revenue of $301mm vs. Street est. of $295mm, for growth of 21% YoY. Dating revenue was $275mm and Non-Dating revenue was $26mm Adj. EBITDA was $100mm vs. Street consensus of $90mm, for growth of 58% YoY. Adj. EPS was $0.17, ahead of the Street est. of $0.15.

Dating direct revenue was $263mm for growth of 23% YoY. Dating indirect revenue was $12mm for growth of 25% YoY. Total Avg. PMC (paid member count) was 5.301mm representing YoY growth of 30%. The Avg. PMC increase was driven primarily by strength at Tinder & the acquisition of PlentyOfFish. Total ARPPU (avg. revenue per paying user) was $0.55. For Q3 2016, management guided to 2-3% seq. Dating revenue growth (vs. Street est. of 5.5%); mid 30% Dating EBITDA margin (vs. our est. of 40.3% & Street est. of 40.8%). For FY 2016, management guided to total EBITDA of $410-415mm vs. previous of $410-$425mm.

No change to the price target of $18.00

For an analyst ratings summary and ratings history on Match Group click here. For more ratings news on Match Group click here.

Shares of Match Group closed at $16.64 yesterday.

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