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Match Group Inc(MTCH-Q)

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Match Group (MTCH) Q4 Earnings Report Preview: What To Look For

StockStory - Mon Jan 29, 1:00AM CST

MTCH Cover Image

Dating app company Match (NASDAQ:MTCH) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter Match Group reported revenues of $881.6 million, up 8.9% year on year, in line with analyst expectations. It was a mixed quarter for Match. Its revenue narrowly beat analysts' expectations, driven by better-than-expected ARPU. That growth, however, was offset by year-on-year subscriber churn. This churn can be attributed to management's significant price increases, a new strategy the team implemented. Its subscribers did increase sequentially, however, showing that the initial shock from Match's price increase could be stabilizing. Management has also taken measures to make the company more efficient, enabling it to beat Wall Street's adjusted operating income and EPS estimates.

Is Match Group buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Match Group's revenue to grow 9.6% year on year to $861.3 million, improving on the 2.5% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Match Group Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Match Group's peers in the consumer internet segment, only Netflix has so far reported results, delivering top-line growth of 12.5% year on year, and beating analyst estimates by 1.4%. The stock traded up 4.4% on the results.

Read our full analysis of Netflix's earnings results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks down on average 0.3% over the last month. Match Group is up 4.7% during the same time, and is heading into the earnings with analyst price target of $44, compared to share price of $38.13.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.

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