Match Group stock (NASDAQ:MTCH) slid more than 9% in early postmarket action after the online-dating name saw revenues grow as expected given price increases at its Tinder product, but guided sharply lower for the fourth quarter.
Total revenue rose 9% to $881.6M, slightly better than expectations for $880.5M. Match Group (MTCH) saw its strongest percentage gains in its Hinge product and the European region.
“While our collective efforts have put the company on much improved footing, there is still much work to be done to sustain this momentum, especially amid an uncertain macro backdrop,” CEO Bernard Kim and Chief Financial Officer Gary Swidler said.
Direct revenue by region: Americas, $455.2M (up 10%); Europe, $252M (up 17%); APAC and other, $159.6M (down 4%).
Direct revenue by product: Tinder, $508.5M (up 11%); Hinge, $107.3M (up 44%); MG Asia, $76.8M (down 5%); Evergreen and Emerging, $174.2M (down 3%).
In operating metrics, Match saw paying users decline broadly. Overall, payers fell by 5% to 15.7M; in the Americas, they fell 9% to 7.49M; in Europe, down 2% to 4.57M; and APAC and other payers fell 1% to 3.65M.
Revenue per payer rose 15% overall to $18.39. In Americas, that figure rose 21% to $20.25; in Europe, up 19% to $18.37; and in APAC and other, down 4% to $14.60.
For Q4, the company forecast total revenues of $855M-$865M, well below Street consensus for $893.8M. The new forecast includes $27M more in foreign-exchange headwinds than anticipated before, and “risk on approximately $7 million of quarterly revenue that our brands collectively generate in Israel, given the ongoing events there,” as well as a risk of deterioration due to “weakening macro conditions globally,” including its ads business and a la carte Tinder revenue.
It expects Q4 adjusted operating income of $305M-$310M (up 7%-9% year-over-year), a margin of 36% at the midpoint.
Also in company news, Match Group settled an antitrust suit against Alphabet (GOOG) (GOOGL) over Google Play ahead of a trial, according to a court filing.
Conference call to come Wednesday at 8:30 a.m. ET.