Yahoo Finance Match stock sinks after Q4 earnings miss
Yahoo Finance Live anchors discuss fourth-quarter earnings for Match.
Video transcript
[AUDIO LOGO]
BRAD SMITH: All right, let's talk about Match.
BRIAN SOZZI: Make it a full-time job.
BRAD SMITH: Finding love, yes. Shares of Match Group, they're feeling the love here today. After missing estimates for its latest quarter, the online-dating app saw revenue decline 2% over the year prior, as revenue for its brand Tinder came in flat. However, I would say that they're about willing to bet the house on Hinge here.
They had some strong performance within Hinge. Hinge's direct revenue, that grew nearly 30% year-over-year. And they also took some action to move up Justin McLeod, at least-- and he is the founder and CEO of Hinge-- at least in his reporting structure there. So bringing him closer to the CEO, at least in a direct-reporting capacity.
BRIAN SOZZI: I'm just looking for simple analysis today. It's been a busy morning for me. This quarter from Match suggests that this notion that recession-- that finding love is recession-proof. That's not the case. I think Match saw a lot of consumer pullback, notably in the Tinder business. So that thesis, you can toss that right in the trash.
BRAD SMITH: Well, because they're relying on people to--
BRIAN SOZZI: Like a bad ex. Just toss them in the trash.
BRAD SMITH: --buy further into the experience. Well, yeah. Well, yes, actually. And if you ask McDonald's, they would say, why did you--
BRIAN SOZZI: Too agressive?
BRAD SMITH: Why did you text them in the first place?
BRIAN SOZZI: [LAUGHS]
JULIE HYMAN: Whoo. Yes. Ronald McDonald has some words--
BRIAN SOZZI: [LAUGHS] Julie.
JULIE HYMAN: --has some looks for you. I mean, you know, I don't know off the top of my head which is bigger. I mean, I know that Tinder is bigger than the company. It makes about a little more than half of the company's revenue, I believe. So the question is, if Tinder really falls back, how much can they lean on Hinge, right? How great can Hinge do, and how much of the slack can that pick up?
I mean, they're talking about $400 million is what they expect of direct revenue from Hinge in 2023. So we'll see if that--
BRIAN SOZZI: Their year hinges on this brand, Julie. Really? Too soon?
JULIE HYMAN: Don't put that on your dating-- don't put that joke on your dating profile, please.
[LAUGHTER]
