Match Group (MTCH) is set to disclose its financial performance for the fourth quarter of 2023 on Jan 30. The company foresees quarterly revenues in the range of $855-$865 million, projecting a year-over-year growth of 9-10%. The Zacks Consensus Estimate for revenues currently stands at $862.05 million, reflecting a 9.7% upsurge from the prior-year quarter.
Market analysts anticipate earnings of 49 cents per share for the fourth quarter, unchanged over the past 30 days. This estimate suggests a strong 63.3% year-over-year growth. While Match Group has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, it missed once, with an average negative surprise of 4.2%.
Factors Shaping the Quarter
Analysts expect robust growth in Tinder, driven by effective marketing and product strategies, to significantly contribute to Match Group’s top-line expansion for the quarter under review. Moreover, the company’s emphasis on integrating music into its platform to attract Gen Z users is likely to elevate its performance. Continued momentum in lower-priced products and the increasing popularity of the Hinge dating app in key markets are anticipated to be additional catalysts.
On the flip side, the return of U.S. student loan repayments may have dented demand, affecting Match Group’s performance. Furthermore, macroeconomic uncertainties and forex headwinds are expected to have impacted the company’s profitability.
Projections and Concerns
The Zacks Consensus Estimate for fourth-quarter 2023 total Revenue Per Person (RPP) stands at $18.20, indicating a robust 13.7% growth year over year. Nevertheless, the consensus mark for total payers in the Americas in the same quarter is expected to be 7.44 million, reflecting a decline of 7.6% year over year.
Match Group’s Earnings ESP stands at -4.07% and it presently holds a Zacks Rank #3. While this adds an element of uncertainty, the real question remains – Will Match Group emerge with yet another earnings beat?
Stocks to Consider
From the same industry, companies like Apple (AAPL), Alphabet (GOOGL), and Twilio (TWLO) are poised to make an impact with their soon-to-be-reported quarterly results.
Apple is expected to release its first-quarter fiscal 2024 results on Feb 1, reflecting an estimated 10.6% increase in earnings over the prior-year quarter. Alphabet is expected to announce its fourth-quarter 2023 results on the same day with a projected 54.3% earnings growth. Twilio is scheduled to announce its fourth-quarter 2023 results on Feb 14, demonstrating a significant year-over-year earnings improvement.
While we wait for the earnings unveil, it is crucial for investors to closely monitor the market pulse. Stay tuned!
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