Match Group (NASDAQ:MTCH) stock fell more than 3% on the back of weaker-than-expected revenues reported by the company in its first-ever quarterly report. The company went public back in November and owns about 50 dating and educational brands on the Internet.
The company is better known for its escapades in Match.com and Tinder, the app that has everyone swiping right. While the company has seen an exponential increase in paid subscriptions on the dating side, there has been more than what you’d call a slump on the educational side.
The company’s dating business accounted for about 90% of the total revenue recorded for the quarter, while its educational sector could only manage about 10% of the amount. The setback is attributed to Princeton Review and Tutor.com who, according to the company, lost about 1.7% in revenue during the quarter.
While the company announced that its dating side was growing without showing any signs of slowing down, Barclay’s Chris Merwin was definitely not impressed by the rate of the growth as he stated: “It looks like, out of the gate, the reported dating revenue growth was only about in line, and I think the market was hoping for something better.”
Though some people might perceive that Mr. Merwin’s statement might have been a tad too harsh, the analyst’s suggestion rightly points out that the growth in Match Group’s dating section, no matter how exponential, is not even nearly enough to offset the soft education sales environment.
The company reported $267.5 million against the consensus estimate of $276 million and will have to revamp its educational game, so to say, if it aims to do better in future quarters. Popular opinion suggests that the company’s well-oiled dating business is overshadowed by its under-performing efforts in the educational sector.