Match Group Inc. (Nasdaq: MTCH) reported better-than-expected revenues and profit for the third quarter of 2019, aided by the continued strength in membership growth for its search app Tinder.
Meanwhile, the company added that it has formed a special committee to evaluate a previously announced proposal to separate Match Group from its parent company InterActiveCorp (Nasdaq: IAC) .
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.”