Shares of Match Group Inc. (MTCH) experienced a significant surge of more than 14% during the after-hours session on Tuesday. The online dating company, known for its popular brands including Tinder, announced that it had turned a profit in the second quarter and showcased its commitment to utilizing artificial intelligence (AI) to enhance the dating experience.
Impressive Financial Performance
Match Group reported earnings of $137 million, equivalent to 48 cents per share, for Q2. This marks a notable contrast to the loss of $32 million, or 11 cents per share, that the company incurred during the same period last year. Revenue also saw a 4% increase, reaching $830 million. These figures exceeded the FactSet consensus, which estimated earnings of 44 cents per share on sales of $812 million.
A Focus on Innovation
In a letter addressed to shareholders, Match Group highlighted the improvements in its various brands and emphasized the company’s dedication to innovation. With its financial performance steadily improving, Match Group reported that it now has more resources to allocate towards enhancing user experience. The company aims to achieve this through the development of AI-enabled capabilities that address users’ dating challenges and attract even more individuals to the dating category.
Positive Outlook for Q3
Match Group projects a strong third quarter, anticipating revenue between $875 million and $885 million. This forecast reflects an expected 8% to 9% increase compared to the previous year. Meanwhile, the FactSet consensus predicts third-quarter revenue of $865 million.
Despite trading down 0.8% during regular trading hours, Match Group’s impressive Q2 results and optimistic outlook for Q3 have propelled its stock price upward in after-hours trading.