Match Group Inc (MTCH.O) forecast current-quarter sales above Wall Street expectations after beating quarterly estimates, as demand for its online dating app Tinder rebounded during the coronavirus lockdowns.
Tinder added about 200,000 users in the second quarter, taking its average subscribers to 6.2 million, as restrictions to stop the spread of the pandemic limited face-to-face meetings and encouraged more people to use dating apps as an alternative.
The numbers also allayed investor concerns over slowing growth at the company’s flagship product, sending shares 3.2% higher after the bell.
“Despite the pandemic, our user trends like engagement and willingness to pay for our products is up,” Chief Executive Officer Shar Dubey said.
Match had revamped its video calling feature to boost usage during lockdowns and also offered free access to the “Passport” feature on Tinder, which allows users to virtually change their location and match with people across the world.
The company expects third-quarter revenue of at least $600 million, above analysts’ estimate of about $575 million, according to Refinitiv IBES data.
Match-owned apps, including Hinge and OkCupid, dominated nearly 61% of the dating app market in the quarter, by measure of monthly active users, according to data from analytics firm Apptopia.
“As the pandemic took hold, we saw an increase in product usage, particularly among younger users and females,” the company said in its shareholder letter.
Total revenue rose 12% to $555.5 million in the second quarter, beating analysts’ average estimate of about $533.7 million.