News

Earnings Results: Match brings in Zynga exec as next CEO, but stock falls as outlook comes up short

0

Match Group Inc. is bringing in a new chief executive with a history steeped in gaming as the online-dating company chases continued growth, but shares were headed 4% lower in after-hours trading Tuesday after the company fell short with its revenue outlook for the current quarter.

The company announced Tuesday that Zynga President Bernard Kim would be taking over the Match
MTCH,
-2.07%

CEO post at the end of May, replacing current Chief Executive Shar Dubey, who will stay on Match’s board of directors.

Kim has been the president of Zynga
ZNGA,
+0.12%

since 2016 and was involved in areas such as data science, product management and global marketing, per Match’s statement. The company also highlighted that he “was pivotal in the company’s expansion to new markets such as blockchain and hyper-casual gaming” and helped Zynga branch into new platforms, including Snap Inc.’s
SNAP,
-2.00%

Snapchat and Nintendo Co. Ltd.’s
NTDOY,
+0.48%

7974,
-2.35%

Switch console.

Kim spent almost a decade at Electronic Arts Inc.
EA,
+2.09%

before his time at Zynga.

“Creative, dynamic executives that are able to lead an organization and promote a culture that produces innovative products, embraces new technologies, and attracts and retains the very best people are hard to find,” Match Chairman Tom McInerney said in a release. “We had it with Shar [Dubey] and it became apparent to us that Bernard’s clear track record of success demonstrates the same unwavering commitment to people, products and shareholder value.”

Dubey, the outgoing CEO, plans to resign as an officer of Match but will “focus on product strategy” and assist with the leadership transition through her role on the board.

Match announced the CEO change alongside its latest earnings results, which showed that the dating company generated $799 million in revenue for its March quarter, up from $668 million a year earlier. Analysts tracked by FactSet were expecting $794 million in revenue.

“This strong growth was achieved despite the negative impacts from Russia’s invasion of Ukraine on our European business, continued COVID-19 cases and restrictions in various geos, and negative foreign exchange (‘FX’) effects on our revenues,” Match said in its letter to shareholders.

The company posted net income of $180.5 million, or 60 cents a share, whereas it saw net income of $174.3 million, or 57 cents a share, in the year-prior period.

Direct revenue from Tinder was up 18% from a year earlier, while the company saw a 17% increase in the number of people paying for the service.

Match plans to conduct a global launch of Tinder Coins, an in-app currency, during the summer. It’s also working on “monetization features designed for female users, with a planned launch of a new female-focused package in the second half of 2022,” according to the company’s shareholder letter.

For the June quarter, Match anticipates $800 million to $810 million in revenue. The FactSet consensus was for $836 million.

The outlook “reflects the impact of the challenging current macroeconomic environment,” Match said in its letter.

Match also disclosed Tuesday that its board authorized the repurchase of up to 12.5 million shares. The buyback authorization reflects Match’s “confidence in our team and the prospects for our business,” the company said in its shareholder letter.

The Wall Street Journal: Roku and Apollo Global team up to bid for minority stake in cable channel Starz

Previous article

Earnings Results: Herbalife executives cut forecast, point fingers at newest ‘distributors’ as stock heads for 2-year low

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News