What happened
Match Group (NASDAQ:MTCH) shareholders beat a booming rally last month. Their stock gained 13% in April compared to a 5.2% spike in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally wasn’t enough to put the stock in positive territory in 2021, but shares are still up more than 100% in the past 12 months.
IMAGE SOURCE: GETTY IMAGES.
So what
April’s increase came as investors gained confidence in the online dating business. Match received a few Wall Street upgrades ahead of a potentially strong first-quarter earnings report in early May. The owner of the Tinder, Hinge, and OkCupid apps has been enjoying robust engagement trends through the pandemic while targeting a growing list of international markets.
Now what
Match said on May 4 that this momentum has carried through into early 2021. Revenue jumped 23% through late March, mainly thanks to a 15% increase in Tinder users and a 4% boost in average spending on that platform. The company’s operating income rose at an even faster pace. “We are pleased with the way 2021 has begun,” CEO Shar Dubey said in a letter to shareholders.
Match is calling for sales to land between $680 million and $690 million in the second quarter, with help from relaxed social-distancing efforts in places like the U.S. and parts of Europe. Management is even more confident in reaching its broader 2021 goals of sales and earnings growth in the high-teen percentage range.
