Match (MTCH) is trading at all-time highs after the company reported strong third quarter results and gave a bullish outlook.
Average paid member count (PMC) grew 18% to 6.6 million, marking an acceleration from 15% growth last quarter.
Tinder added a record 476K paid subs during the quarter, bringing PMC up 85% year-over-year to 2.6 million.
In late August, Tinder rolled out Tinder Gold in the US on iOS. It launched on Android in late September. Management said Tinder Gold meaningfully exceeded expectations: The net effect is higher ARPPU (average revenue per paying user), higher conversion -- more than offsetting lower duration. Expectations were high after Tinder became a top grossing app on the Apple app store following the Tinder Gold launch and the company delivered.
Management said fourth quarter Tinder PMC adds would be similar to Q3 and would grow next year at a slower pace than the Q3/Q4 surge.
What's more, the turnarounds at legacy dating brand Match and OkCupid are progressing well as both properties returned to PMC growth during the quarter.
Match guided for mid-teens revenue growth next year, towards the high end of expectations. Management remains very exciting about the potential for Tinder.
Match now has a ~$8 billion valuation. Some 40% of the float is sold short. IAC (IAC) still owns 82% of the shares outstanding after floating the IPO 2 years ago.