Match Group (MTCH) Tops Q3 EPS by 4c
Match Group (NASDAQ: MTCH) reported Q3 EPS of $0.23, $0.04 better than the analyst estimate of $0.19. Revenue for the quarter came in at $316.45 million versus the consensus estimate of $318.07 million.
"Q3 was another strong quarter for Match Group," said Greg Blatt, Chairman and CEO. "We grew revenue 22% and expanded margins in our Dating businesses, delivering results ahead of expectations, driven by great growth at Tinder, as well as PlentyOfFish and Meetic. Our Non-dating business turned a meaningful profit this quarter as expected, and overall, we are meeting or exceeding the marks we have set for ourselves. The outlook for our Dating businesses remains very positive."
Q3 2016 HIGHLIGHTS
- Average PMC grew 33% to 5.5 million over the prior year quarter led by continued strength at Tinder, growth at Meetic and Pairs, in Japan, and from PlentyOfFish, which was acquired in October 2015.
- Tinder's strong subscriber growth continued, ending Q3 with over 1.5 million PMC.
- Dating revenue grew 22% over the prior year quarter to $288 million and total revenue grew 18% to $316 million. Total revenue was impacted by a revenue decline at Non-dating.
- Growth in operating income outpaced revenue growth, increasing 57% over the prior year quarter to $92 million, while Adjusted EBITDA grew 34% to $111 million.
- Operating income margin and Adjusted EBITDA margin for Dating improved to 32% and 37%, respectively, compared to 25% and 34%, respectively, in the prior year quarter.
- ARPPU continues to exhibit stability during 2016 and was $0.54 for the quarter.
- Operating cash flow for the nine months ended September 30, 2016 increased 34% to $169 million compared to the prior year period, while free cash flow increased 22% to $130 million. Match Group ended Q3 2016 with $231 million of cash and cash equivalents.
- Non-dating generated positive operating income in Q3 2016, while Adjusted EBITDA increased 55% to $3.6 million compared to the prior year quarter.
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