On August 5, Match fell 8.95% in pre-market trading, trading at $37.4/share. The decline was triggered by the company's Q2 earnings report, which revealed revenue below expectations and soft forward guidance.
Match reported Q2 revenue of $853.1 million, missing the analyst consensus estimate of approximately $857 million and declining 1.2% year-over-year. While Q2 EPS of $0.70 beat the $0.65 estimate by 7.69%, the earnings beat failed to offset concerns over decelerating growth. For Q3, management guided revenue of $885 million to $895 million, with the midpoint falling short of the Street's $892.7 million expectation. Additionally, the company disclosed that Tinder's ongoing user experience testing and product adjustments are expected to negatively impact full-year direct revenue by $30 million to $40 million. The E&E (Evergreen & Emerging) business segment's direct revenue is projected to decline in the mid-to-high teens percentage range for the fiscal year, further weighing on sentiment.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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