Shares in Match Group (MTCH), owner of Match.com and Tinder dating sites, plunged 12% Wednesday after reporting third-quarter earnings with revenues up 18% from last year but warned of slowing growth ahead.
Average Paid Subscribers for Match Group dating services grew 33% to 5.5 million led by continued strength at Tinder, growth at Meetic and Pairs, in Japan, and from PlentyOfFish, which was acquired in October 2015.
Tinder’s strong subscriber growth continued, ending Q3 with over 1.5 million paid subscribers.
Dating revenue grew 22% over the prior year quarter to $288 million and total revenue grew 18% to $316 million. Total revenue was impacted by a revenue decline at Match Group’s Non-dating division, which includes Princeton Review and college test-preparation services.
“Q3 was another strong quarter for Match Group,” said Greg Blatt, Chairman and CEO. “We grew revenue 22% and expanded margins in our Dating businesses, delivering results ahead of expectations, driven by great growth at Tinder, as well as PlentyOfFish and Meetic. Our Non-dating business turned a meaningful profit this quarter as expected, and overall, we are meeting or exceeding the marks we have set for ourselves. The outlook for our Dating businesses remains very positive.”
Match Group was spun off from Interactive Corp. (IAC) in November 2015.