Match Slumps After Revenue Forecast Misses Analyst Estimates
(Bloomberg) -- Match Group Inc. shares dropped more than 10 percent after the company said revenue growth would flat-line through the rest of the year.
Sales in the fourth quarter will be $440 million to $450 million, missing the average analyst estimate of $454.5 million. Revenue in the third quarter, which Match reported Tuesday, rose 29 percent to $444 million.
Match is working to become a one-stop shop for dating apps by buying smaller competitors and building up its main money-making app, Tinder. The company had about 8.1 million users in the third quarter, compared to 6.6 million in the same quarter last year.
- Third-quarter earnings came in at 44 cents a share. Wall Street was looking for 33 cents, according to data compiled by Bloomberg.
- Match said it will pay a special dividend of $2 a share on Dec. 19.
- The shares fell 11 percent in extended trading, after closing at $51.47 in New York.
- Tinder saw revenue double in the third quarter from a year earlier, the company said.
- Tinder is on track to pull in about $800 million in sales this year.
- Match said average revenue per subscriber was 57 cents in the third quarter, up 6 percent from a year earlier.
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