Yahoo Finance Match Group stock jumps on Q3 revenue growth
Yahoo Finance Live anchors discuss third-quarter earnings for Match Group and whether love is recession-proof.
Video transcript
- Switching gears, everyone. Investors saying it's a match as dating app specialist Match Group reported an earnings beat. The company, which owns popular services, including Tinder, Hinge, and Match.com, saw a boost in users and subscriptions in Tinder. That's even as a weakening global economy threatens some of the spending here, particularly from its lower income consumers.
But this is notable, especially given how the reopening would certainly thrust a lot of attention towards people who were just looking to get back out. And year over year, that was the construct, how much of the reopening in 2021 in Q3 back then would actually protrude or permeate over into 2022 and remain kind of this normalized level.
- I guess the only thing I can really add here is love is not recession proof. I mean, really, if you've lost a job recently, you don't have money to go spend $200 on a date night. That's how I read this quarter.
- Yeah. I mean, so the company-- last quarter was not great in terms of the earnings in particular. And so this reminds me oddly of Intel a little bit, where, basically, the company comes out and says, we're going to be disciplined on headcount. We're going to be disciplined on expenses. And that seems to be in this environment what the Street wants to hear, these reassurances that these companies are reading the room, so to speak, and that they understand that we're going into a tricky time. So that seems to be the sort of big picture here of why Match is reacting so well to this report. You wouldn't think that Intel and Match would have much in common. But that's the theme I see at least.
- Well, I don't think Tinder-- I think there was weakness throughout this report. I think they highlighted that, really, through and through. They lost customers in some parts of the business.
- Well, for Match, for Bumble, all of them are trying to build up the amount of revenue that they're seeing on each individual user by offering some of the incremental kind of add-on costs, whether that's being able to move yourself to the top of somebody's queue, whether that's being able to just send somebody a gift through the platform, which to me is a little creepy. But if that's your--
- The things you should not do. XXXXXXX.
- Jesus. Yeah. I mean, the paying users here is what is going to continue to come down to, where they're seeing that paying user kind of increase. And I think it's really going to come back to as well the amount of word of mouth marketing that actually takes place among those paying users because if some paying user is saying, you know what, at the end of the day, this is not really working for me anyway, then you could see a deceleration there.
- I mean, there's also some internal stuff going on. There's no permanent CEO for Tinder right now. The CEO of that group left earlier in the year. And they have not replaced them. And so this is something that they need to work on as well. So they're seeing the revenue strength. They're seeing still paying users keep up. But it's this sort of preparing for maybe things that are not going to be so rosy coming down the pike.
