(Reuters)

Match Group Inc forecast current-quarter revenue above expectations today (May 4), banking on its online dating apps including Tinder and Hinge attracting more subscribers as easing pandemic curbs encourage people to socialise.

The company expects second-quarter revenue in the range of US$680 million to US$690 million, 22 per cent to 24 per cent higher than last year and above analysts’ estimates of US$678.8 million, according to IBES data from Refinitiv.

“As we head into summer, with a growing number of people getting vaccinated, we cannot help but be excited … . Looking forward to a summer of love,” Chief Executive Officer Shar Dubey said in a letter to shareholders.

PROPENSITY TO PAY REBOUNDS

He noted that accelerating re-openings in the United States drove growth at its brands in the reported quarter, and as summer months began last year, propensity to pay rebounded across the portfolio.

With the pandemic keeping people from meeting one another in person, the company has also been tapping into the fast-growing social discovery space, which let’s users discover and connect with people not exclusively for dating as they might never meet them face-to-face.

However, Dubey warned that the post-pandemic recovery is going to take some time to play out as the situation in the rest of the world remains more mixed, with the COVID-19 trends in India, Brazil, Japan and certain European markets worsening.

Total revenue jumped 23 per cent to US$668 million versus estimates of US$650.7 million, largely powered by an 18 per cent revenue rise at Tinder on 15 per cent average subscriber growth. Other brands saw a rise of 30 per cent.

Match’s average revenue per user rose nine per cent. Total subscribers increased 12 per cent to 11.1 million.

Net earnings attributable to Match shareholders was US$174.3 million, or 57 cents per share, compared with a loss of US$202.8 million, or US$1 per share, last year.