Market Swipes Left on Match Group's Q3 Earnings
Match Group (NASDAQ: MTCH) reported higher revenue and profit in the third quarter that beat Wall Street's expectations, but investors were disappointed with its fourth-quarter forecast as legal challenges, mounting competition, and a looming spinoff from its parent will make it more difficult to grow as it has.
The owner of online dating apps such as Tinder and OkCupid reported revenue of $541.5 million, up 24% in currency-adjusted sales and higher than the consensus $539 million consensus on Wall Street, while earnings of $0.51 per share easily outpaced the $0.47 analysts were looking for.
But Match also said revenue would grow to only $545 million to $555 million in the fourth quarter -- below the $560 million it was expected to guide toward -- and mounting legal bills and international expansion will also hold back adjusted EBITDA to a range of $205 million to $210 million.
Source Fool.com
