THE MOTLEY FOOL – Jan 15 – In its first full year as a publicly traded company, Match Group surged past expectations, climbing 26%. A number of factors led to its standout performance, including Tinder's growth, strong operating leverage, and consistently beaten earnings estimates. As the chart shows, Match Group stock plummeted sharply to start the year. Its earnings report from February sent the stock down 20% in two days, even as the company beat earnings estimates. The market instead focused on revenue growth, which increased just 12% to $267.5M short of estimates of $272M. Adjusted net income fell 2% as well, causing some investors to question the company's business model. As the market bounced back, so did Match shares, and the company delivered better numbers in its next report as the stock spiked 16%. Revenue growth accelerated to 21%, and average paid member count jumped 36% to 5.1M. Adjusted net income also jumped 30%. The stock peaked in October at over $19 but then plunged on its Q3 earnings report, as investors thought earnings growth would slow in 2017 based on management comments about investments. The stock slipped 12% on the news.
by Jeremy Bowman
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Summarized by the Courtland Brooks team