Match Group (MTCH) has issued a statement warning that Q1 results are likely to fall around the low end of the previously estimated range due to the impact of Covid-19.
“While we have seen increases in engagement trends among younger users, we are seeing fewer new users joining our products. This impact is most pronounced among users over the age of 30 and varies by region, depending on the level of COVID-19 containment” the Tinder-owner explained. That’s despite an increase in the number and length of conversations on Tinder, which are up anywhere from 10-30% in many countries since the outbreak started.
As a result CEO Shar Dubey moved to modify investor expectations for the current quarter, writing: “We expect the virus’s impact may make it challenging to grow revenue from Q1 to Q2 this year, although we currently believe we will have year-over-year Q2 revenue growth.”
Match also announced the delay of several product feature and press launches, including the international launch of Swipe Night on Tinder. To offset revenue decline, the company plans to reduce some expenses including marketing spend.
However, Match’s proposed separation from US media giant IAC (IAC) is still expected to close sometime in Q2, though the company adds that the timing could be impacted by the current pandemic. Overall, TipRanks reveals that Match scores a Moderate Buy consensus based on 12 analyst ratings over the last three months. With shares down 19% year-to-date, analysts are now predicting upside of 32% from current levels.