Shares of Match Group (NASDAQ:MTCH) sank nearly 8% in after-hours trading yesterday after beating third-quarter Fiscal 2023 expectations. The decline was attributed to dismal Q4 guidance. The reasons for the poor outlook included reduced consumer spending, unfavorable macroeconomic factors, foreign exchange headwinds ($27 million), and an expected fall in revenues ($7 million) from war-stricken Israel. For Q4, Match forecasts revenue between $855 and $865 million, while consensus is pegged at $895.2 million.
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The online dating service provider posted diluted earnings of $0.57 per share, easily beating analysts’ consensus of $0.53 per share and higher than the prior-year figure of $0.44 per share. Similarly, revenue rose 9% year-over-year to $881.6 million, outpacing the consensus of $879.85 million. Compared to the prior year, Direct revenues at Tinder and Hinge grew 11% and 44%, respectively.
Further, Match Group announced that it had reached a binding term sheet to settle the ongoing lawsuit with Google Apps maker Alphabet (NASDAQ:GOOGL). Per the deal, the $40 million placed in escrow will be returned to Match. Also, by March 31, 2024, Match’s apps will start using Google’s User Choice Billing, allowing Match Group to use cheaper payment systems other than Google.
What is the Forecast for MTCH Stock?
On TipRanks, MTCH stock has a Moderate Buy consensus rating based on 14 Buys and six Hold ratings. The average Match Group price forecast of $55.37 implies 60% upside potential from current levels. Year-to-date, MTCH stock has lost 15.7%.
