- Match Group, the owner of Tinder, OkCupid and Match.com, posted gains that surpassed Wall Street estimates.
- Match CEO Mandy Ginsberg told investors that Facebook is no longer a threat to his dating apps like bars, churches or other ways to meet singles on romantic dating partners since dating is not a "one-size-fits-all" Market is.
- Match shares fell by up to 5% on Wednesday
- Watch Match Group trading here in real time.
Tinder owner Match Group reported solid results for the first quarter. Tuesday, but everyone seemed to focus on Facebook and its intentions to join the dating market.
"Short-term ambiguity about FB's pending dating feature is likely to cloud the impressive quarter," wrote Jefferies analyst Brent Thill in a note.
The Match Group, which includes the dating apps OKCupid and PlentyOfFish, suffered a heavy blow to their stock valuation after stocks lost more than 20% last Tuesday after Facebook announced it would add dating capabilities to its platform. However, the management of Match is not worried that Facebook might steal market share.
Match management defended its position against the potential Facebook threat and assured investors that the social media giant would not invade its client base. Match Group CEO Mindy Ginsberg said at the company's teleconference on Wednesday that Facebook will not compete directly with Match's dating apps, as will bars, churches and other ways that singles do not take partners out of business. She also noted that dating is not a category in which there is a single size and that, on average, at all times, three dating products are used.
"The research bureau says that the vast majority of singles do not want to date Facebook, largely due to data and privacy concerns," Ginsberg said. "More importantly, they do not want to be contacted by strangers on a social network designed to connect with friends and family."
Ginsberg pointed out that Tinder, the company's strongest growth brand, introduced text messaging for its app last year, allowing users to log out via Facebook. Within two months, new users signing up via Facebook dropped from 1
"It's possible that Facebook can convince some of the resistances of dating through technology, and so maybe they can help break the stigma and expand the category," Ginsberg said. "Given our large product portfolio, we believe we can benefit from it."
Match Group reported adjusted earnings of $ 0.26 per share, exceeding the $ 0.24 expected by Wall Street analysts of omBloomberg. Revenue was $ 407.4 million, ahead of $ 386.15 million.
Match Group has grown more than 8% this year.