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Match Group (MTCH) Q3 Earnings Preview: What to Expect?

Match Group, Inc. MTCH is set to report third-quarter 2016 earnings results after the closing bell on Nov 2.

The company went public last November and in its first earnings announcement as a publicly-traded company, Match Group had missed earnings estimates by 5.3%.

The succeeding quarters proved to be much better, with the company’s earnings beating estimates by 20% in its first-quarter 2016 results, and more recently, by 7.7% in the last reported quarter. The average beat for the three quarters comes to 7.5%.

Let's see how things are shaping up for its fourth earnings report as a public company.

Key Factors Influencing Q3 Results

Match Group is the world’s foremost provider of dating products and operates a portfolio of over 45 brands. Three of its biggest and best known brands are Match.com, OkCupid and Tinder. The company’s reputation, established user base and size should prove to be favorable in the upcoming earnings.

About 60% of the company’s revenues come directly from the users of its dating services in North America, mostly in the form of membership subscriptions. Most of its users connect from mobile devices, where conversion to paid members is also higher. Last quarter, its dating revenues rose 24%, which drove a 21% increase in the top line. This momentum bodes well for the company’s top-line growth in the quarter under review.

Furthermore, a big part of Match Group's growth comes from its acquisitions. Over the past six years, Match Group bought 25 companies for an aggregate of about $1.3 billion. Recently, the company acquired the online...


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