Match Group (MTCH) to Post Q4 Earnings: What's in Store?
Match Group MTCH is slated to report fourth-quarter 2022 results on Jan 31.
The company expects fourth-quarter 2022 revenues to be between $780 million and $790 million, indicating flat numbers year over year.
The Zacks Consensus Estimate for revenues is currently pegged at $786.7 million, indicating a decline of 2.39% from the year-ago quarter.
For the fourth quarter, the Zacks Consensus Estimate for earnings has moved south by 2.1% to 47 cents per share in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average negative surprise being 35.8%.
Let’s see how things are shaping up for the upcoming announcement.
Match Group Inc. Price and EPS Surprise
Match Group Inc. price-eps-surprise | Match Group Inc. Quote
Factors to Note
Match Group’s fourth-quarter performance is likely to have benefited from continued momentum at Tinder and solid performance of other apps like Hinge, Pairs and OkCupid.
The company has been witnessing a rebound in the propensity to pay, driven by the robust uptake of video-enabled services to boost engagement post the COVID-19 crisis.
Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the third quarter, direct revenues from Tinder grew 6% from the prior-year quarter, driven by 7% Payers growth to 11.1 million, partially offset by an RPP decline of 1%.
In the fourth quarter, Tinder launched a series of healthy dating guides in collaboration with No More, a global non-profit dedicated to eradicating domestic violence and sexual assault.
On Dec 14, according to Join Techcrunch, Tinder launched a new Relationship Goals feature that allows users to display their dating goals on their profile, whether they’re looking for a long-term partner, long-term but open to short-term and so on.
The introduction of Tinder Lite, which intends to expand its international presence, has been acting as a key catalyst. Tinder expanded its video in profile feature to more members globally. Videos within a Tinder profile allow members to express themselves better, discover more about others and find the right match.
In the fourth quarter, Hinge rolled out a feature that allows users to add their Relationship Type to their profile, whether that be monogamous, non-monogamous or figuring out my relationship type. This feature will allow users to focus on the right people and connect with those who share the same dating goals.
The acquisitions of South Korea-based leading social discovery and video technology company, Hyperconnect and non-dating apps like Ablo, are expected to have aided international revenues in the to-be-reported quarter.
Hyperconnect continues to build momentum. Azar has seen steady growth with the addition of live streaming video into the 1:1 video chat app. Hakuna’s partnership with popular brands, including Hello Kitty and Tokyo Avengers, are expected to drive revenues and new user growth in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Match Group has an Earnings ESP of -17.41% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
MSCI MSCI has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MSCI is scheduled to release its fourth-quarter 2022 results on Jan 31. The Zacks Consensus Estimate for MSCI’s earnings is pegged at $2.71 per share, suggesting an increase of 7.97% from the prior-year quarter’s reported figure.
Endava DAVA has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.
Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Analog Devices ADI has an Earnings ESP of +2.99% and a Zacks Rank #3 at present.
Analog Devices is scheduled to release its first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.
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