Match Sees Slowing Revenue Growth in Second Quarter on Virus
- More people are engaging in conversations but not buying perks
- Shelter in place rules have reduced the number of new users
Match Group Inc. said it expects revenue growth to slow in the second quarter from the first, suggesting that singletons forced to shelter in place won’t be willing to pay for extra features to enhance their online dating life when relationships can’t move beyond the screen.
Sales at the owner of some of the world’s most popular dating products rose 17% in the first three months of the year to $544.6 million, according to a statement Tuesday. That was in line with the average analyst’s estimate, according to data compiled by Bloomberg. Match said that year-over-year revenue growth in April was only 9% and “absent a dramatic change,” expects revenue growth in the current period to increase from a year ago, but decline a low single-digit percentage from the first quarter. The company reported a net profit of $160 million in the first quarter, or 55 cents a share. Analysts were expecting 34 cents.