Match Group (NASDAQ:MTCH) delivered better-than-expected fourth-quarter earnings, but a disappointing forecast for the upcoming quarter and full year sent its stock tumbling over 8% in pre-market today.
The online dating giant, which owns Tinder, Hinge, and other platforms, posted adjusted earnings per share of $0.59, surpassing analyst estimates of $0.56. Revenue for the quarter reached $860 million, edging past the expected $859.4 million.
Despite the solid Q4 performance, Match Group’s guidance fell short of Wall Street expectations. The company projects first-quarter revenue between $820 million and $830 million, notably lower than analysts' $852.7 million forecast. Its full-year 2025 outlook also disappointed, with projected revenue between $3.375 billion and $3.5 billion, missing the $3.52 billion consensus estimate.
Match Group attributed the weaker outlook to foreign exchange headwinds and its decision to exit certain live-streaming services, which it expects to create a small but notable drag on revenue growth in 2025. Foreign exchange fluctuations alone are anticipated to be a more than two-percentage-point headwind for the year.
While Match Group remains optimistic about peak season trends and long-term user growth, the market’s reaction suggests investors are wary of near-term challenges. The company emphasized a focus on innovation, cash flow generation, and capital returns, but it will need to prove that these efforts can counterbalance external pressures.
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