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Match Group (MTCH) to Post Q1 Earnings: What's in Store?

Match Group MTCH is slated to report first-quarter 2023 results on May 2.

The company expects first-quarter 2023 revenues to be between $790 million and $800 million, indicating more or less flat numbers year over year.

The Zacks Consensus Estimate for revenues is currently pegged at $794.58 million, indicating a decline of 0.51% from the year-ago quarter.

For the first quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which has remained unchanged 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 1.11%.

Let’s see how things have shaped up for the upcoming announcement.

Match Group Inc. Price and EPS Surprise

Match Group Inc. Price and EPS Surprise
Match Group Inc. Price and EPS Surprise

Match Group Inc. price-eps-surprise | Match Group Inc. Quote

Factors to Note

Match Group’s first-quarter performance is likely to have benefited from continued momentum at Tinder and solid performance of other apps like Hinge, Pairs and OkCupid.

Tinder is expected to have contributed to the to-be-reported quarter’s top line. In the fourth quarter, direct revenues from Tinder grew 9% from the prior-year quarter, driven by 16.1 million payers, partially offset by an RPP decline of 1%.

In the first quarter, Tinder removed all “fish pics” from member profiles. According to a Tinder study, 92% of singles avoided the profiles with “fish pics”. This is expected to have aided active user growth on Tinder in the to-be-reported quarter.

The introduction of “It Starts With a Swipe”, which intends to celebrate modern dating milestones and offer a romantically stylized experience, is expected to have aided Tinder target young adults better in the first quarter. These young adults have redefined relationships in diverse and inclusive ways.

In the first quarter, Tinder expanded its safety features like Incognito, block profile and long press reporting. This is likely to have given more control to users for interacting with others on platform activity.

The acquisitions of South Korea-based leading social discovery and video technology company, Hyperconnect and non-dating apps like Ablo might have aided international revenues in the to-be-reported quarter.

Hyperconnect continues to build momentum. Hinge rolled out a free-to-use and not-so-frequently asked questions features in the app, which not only addresses questions around sexuality but also features answers from leading LGBTQIA+ voices. This is likely to have attracted subscribers on its platform in the to-be-reported quarter.

What Our Model Says

Our proven model predicts an earnings beat for MTCH this time around. 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.

Match Group has an Earnings ESP of +7.50% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are few more stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Carvana CVNA has an Earnings ESP of +19.16% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CVNA is scheduled to release its first-quarter 2023 results on May 4. The Zacks Consensus Estimate for CVNA’s losses is pegged at $1.91 per share, suggesting an increase of 33.91% from the prior-year quarter’s reported figure.

Jack In The Box JACK has an Earnings ESP of +4.09% and a Zacks Rank #2 at present.

JACK is set to report second-quarter fiscal 2023 results on May 17. The Zacks Consensus Estimate for JACK’s earnings is pegged at $1.16 per share, flat year over year.

Shift Technologies SFT has an Earnings ESP of +33.75% and a Zacks Rank #2 at present.

SFT is scheduled to release its first-quarter fiscal 2023 results on May 11. The Zacks Consensus Estimate for SFT’s losses is pegged at $3.22 per share, suggesting an increase of 54% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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