Match Group logged fourth-quarter results that exceeded Wall Street’s estimates, except in the number of paying users, which extended its decline to a fifth consecutive quarter.
The online-dating company posted earnings of $229.7 million, or 81 cents a share, for the fourth quarter ended Dec. 31, up from $84.6 million, or 30 cents a share, a year earlier. Analysts polled by FactSet expected 50 cents a share.
Revenue rose 10%, to $866.2 million. Analysts polled by FactSet expected $861.3 million.
Payers declined 5%, to 15.2 million, compared to the year-ago period, while revenue per payer increased 17%, to $18.67, during the same period. Analysts polled by FactSet expected about 15.4 million paying users.
The decline in payers has extended to five quarters in a row, a point that will be top of mind for investors who are concerned about potential saturation in the online-dating space. Pressure to show that growth is still possible will be critical for Match in the coming quarters, particularly after The Wall Street Journal reported that Elliott Investment Management has built a stake in the company and that it intends to discuss ways to turn its performance around.
“We estimate that the impact of the 2023 pricing optimizations on payers is largely complete, and we remain confident that the price changes have created a more sustainable and healthier payer base going forward,” Chief Executive Bernard Kim and Chief Financial Officer Gary Swidler said in a letter to investors.
Match forecast revenue between $850 million and $860 in the first quarter and between $3.57 billion and $3.67 billion for 2024. Analysts polled by FactSet expected $868 million and $3.62 billion for the respective periods.