Match Group (MTCH:US) stock gained more than 10% on Wednesday after the company that offers popular online dating services like Tinder delivered a strong set of Q2 results, as well as offered Q3 outlook that came ahead of the average analyst estimate.
Match said it generated $830 million in Q2 revenue, topping the consensus for sales of $811.1 million. The adjusted operating income of $301 million for the second quarter also beat analyst expectations. Tinder, the company’s biggest business segment by revenue, saw its sales rise 6% year-over-year.
“Our Q2 financial and operating results demonstrate Match Group’s ability to reignite momentum and position the company for consistent, long-term success. In the first half of 2023, Match Group capitalized on effective organizational improvements, which led to better product and marketing execution at our brands, to deliver strengthening financial performance. We expect these trends to continue, with momentum increasing through the rest of the year,” CEO Bernard Kim said in a shareholder letter.
For this quarter, the company expects to generate $320 million to $325 million in adjusted operating income, together with $875 million to $885 million in Q3 revenue. Tinder revenue growth is expected at 10% as new initiatives continue to build momentum, the company said.
The MTCH stock was up 12.4% year-to-date through Tuesday’s close.