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Match Group Shares Higher; Profit Misses Estimate

Match Group shares were higher Wednesday, even after the dating-service titan reported weaker-than-expected third-quarter profit.
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Match  (MTCH) - Get Free Report shares were higher Wednesday, after the dating-service titan reported weaker-than-expected profit for the third quarter.

It also offered lower-than-expected revenue guidance for the fourth quarter. 

Net income registered $131.2 million, or 43 cents a share, in the latest quarter, down from $141.2 million, or 47 cents, a year earlier. The FactSet analyst consensus called for 49 cents for the latest quarter.

The owner of Hinge, and Tinder posted revenue of $801.8 million for the third quarter, up 25% from $639.8 million in the year-earlier quarter. The FactSet analyst consensus called for $802.5 million in the latest quarter.

As for the guidance, Match projects fourth-quarter revenue of $810 million to $820 million, trailing analysts’ estimate of $838.4 million.

It anticipates adjusted earnings before interest, taxes, depreciation and amortization of $285 million to $290 million. That compares with the analyst consensus of $286 million.

For all of 2021, Match expects revenue of $3 billion. In August, the company projected full-year revenue of $3 billion to $3.03 billion.

Match Group shares recently traded at $151.33, up 1.9%. The stock had slumped 15% since Oct. 21.

“We are very well positioned entering 2022,” Match said. “We expect continued momentum at Tinder and Hinge to drive the mid-to-high teens annual revenue growth that we typically aim for each year.

“With a full-year contribution from Hyperconnect, we expect the overall company growth rate to approach 20%. Before we provide a 2022 outlook for adjusted Ebitda, we want to see how app store policies evolve…”