Shares of Match Group tumbled after the online-dating company issued a fiscal second-quarter revenue forecast that missed Wall Street expectations.
Match (ticker: MTCH) also said it named Zynga (ZNGA) President Bernard Kim as chief executive, taking over for Shar Dubey at the end of May. Dubey, who has been with Match for 16 years, will remain on the board of Match. Dubey was named chief executive in March 2020.
Kim has been the president of Zynga, known for mobile game apps “Words With Friends” and “Farmville,” since 2016.
Match shares declined 6.7% in after-hours trading Tuesday to $73.75. The stock has declined more than 40% year to date.
Match forecast revenue in the fiscal second quarter ending in June of $800 million to $810 million. Analysts surveyed by FactSet were expecting $836 million.
The company said the 13% to 14% year-over-year growth “reflects the impact of the challenging current macroeconomic environment.” Match said it anticipates adjusted operating income in the second quarter of $285 to $290 million, which includes an estimated $6 million of negative impact from Google’s policy changes that begin June 1.
“There is a lot of uncertainty — the macro negatives but also potential positives, particularly around post-Covid reopening around the globe — that make forward visibility challenging,” Match said in a press release.
Analyst Brad Erickson of RBC Capital Markets, which has an Outperform rating on the stock and a price target of $150, said a slower-than-expected pace of recovery combined with foreign exchange headwinds drove “the tempered forward revenue outlook.”
For the first quarter, Match earned 60 cents a share, topping analysts’ estimates of 53 cents, and revenue of $799 million, up 20% from a year earlier and higher than forecasts of $794.1 million.
Payers on the website increased 13% to 16.3 million in the first quarter, Match said, up from 14.4 million a year earlier. The numbers matched expectations.
Write to Joe Woelfel at [email protected]
Credit: www.marketwatch.com /