Shares of dating app company Match Group (NASDAQ:MTCH) jumped 5.61% in the after-market session after the company reported first-quarter results that topped analysts' estimates for revenue, paying customers, adjusted operating income, and earnings per share (EPS). However, free cash flow was below the Consensus. In addition, revenue and adjusted operating income guidance for the next quarter missed analysts' expectations. Despite the weak topline guidance, management added that "Total Revenue and Tinder Direct Revenue can both exit 2023 with double-digit Y/Y growth", which suggests potential acceleration in revenue growth. Finally the company announced board approval for an incremental $1B share buyback. Overall, it was a mixed quarter for the company. The stock initially traded down on the results, but the market seemed to digest the more detailed commentary related to the individual apps and the company's outlook, resulting in a subsequent rebound.
What is the market telling us:
Match's shares are quite volatile and over the last year have had 43 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Match is down 10.7% since the beginning of the year, and at $36.62 per share it is trading 56.7% below its 52-week high of $84.64 from June 2022. Investors who bought $1,000 worth of Match's shares at the IPO in June 2020 would now be looking at an investment worth $347.02.
Is now the time to buy Match? Access our full analysis of the earnings results here, it's free.