Match Group Reports Second Quarter Financial Results

Match Group (NASDAQ: MTCH) reported second quarter 2018 financial results.  Total Revenue grew 36% over the prior year quarter to $421 million, driven by 27% Average Subscriber growth and 8% ARPU growth.  Tinder Average Subscribers were 3.8 million in Q2 2018, increasing 299,000 sequentially and 1.7 million year-over-year.  Operating income was $150 million, an increase of 81% over the prior year quarter, while Adjusted EBITDA increased 60% over the prior year quarter to $176 million.  Operating Income and Adjusted EBITDA margins increased 8.8 and 6.2 points to 36% and 42%, respectively, as we continue to benefit from operating leverage in our business.  Net earnings attributable to shareholders of $133 million, or $0.45 per diluted share, an increase of over 150% over the prior year quarter, was driven by strong revenue growth and operating leverage.

In the second quarter of 2018, Match Group recorded a GAAP income tax provision of $11.5 million, or an effective tax rate of 8%. The effective tax rate was lower than the statutory tax rate of 21% due primarily to excess tax benefits generated by the exercise and vesting of stock-based awards.

Match Group share value rose over $45 on early trading Wednesday.

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