Match Group Revenue Beats Expectations as Tinder Attracts More Paying Users

Match Group Revenue Beats Expectations as Tinder Attracts More Paying Users
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This story originally appeared on Reuters

Dating website operator Match Group Inc. reported better-than-expected quarterly on Tuesday, as its popular dating app Tinder attracted more paying users.

The company's shares rose 7.3 percent to $11.98 in after-hours trading.

Match Group, which also owns and OkCupid, gets bulk of its revenue from membership fees and paid features.

The company said its average paid-member count jumped 36 percent to 5.1 million in the first quarter ended March 31, also helped by the acquisition of .

Match Group, majority owned by media mogul Barry Diller's IAC/InterActiveCorp, agreed to buy Vancouver-based PlentyOfFish for $575 million in July last year.

Tinder surpassed 1 million paid members during the quarter.

The Dallas-based company's dating business, its biggest, which includes apps such as Tinder, recorded a 24 percent rise in revenue to $260.4 million.

Total revenue rose 21.4 percent to $285.3 million, beating the average analyst estimate of $281.8 million, according to Thomson Reuters I/B/E/S.

Operating income rose 8 percent to $29.2 million.

The company's operating expenses jumped 23 percent, largely due to an additional $11.2 million of stock-based compensation.

Net income attributable to Match Group shareholders fell to $7.2 million, or 3 cents per share, from $26.2 million, or 16 cents per share, a year earlier.

Excluding items, the company earned 11 cents per share. Analysts on average had expected 8 cents.

Revenue from the company's non-dating business, which includes educational websites Princeton Review and Tutor.com, was flat at $24.9 million.

Up to Tuesday's close of $11.16, Match Group's shares had fallen 7 percent since the company went public in November.

(Reporting by Sai Sachin R and Kshitiz Goliya in Bengaluru; Editing by Sriraj Kalluvila)

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