MTCH shares plunged 14% post this announcement. IAC shares were also down 10% during aftermarket hours.
The Dallas, Texas-based company, which offers popular dating platforms such as Tinder, OkCupid and Match.com, posted a net profit of 51 cents per share for the quarter, compared to $44 per share in the year-ago quarter. This was better than analysts’ estimate of 42 cents per share.
Revenue grew 22% annually to $541.5 million, driven by a 19% increase in average subscriber growth and a slight rise in revenue per user. Analysts had expected revenue of $540.58 million.
At 5.7 million, average subscribers for Tinder were 1.6 million higher compared to last year.
The average revenue per user, excluding foreign exchange effects, moved up 4% to $0.59 during the three-month period.
MTCH shares have increased 66% since the beginning of this year.
In September, the Federal Trade Commission filed a lawsuit against the company raising objection to certain business practices at Match.com. The company calls these allegations meritless as well as “supported by consciously misleading figures.”