Match Group Warns Negative Currency Impacts Will Bring Down Revenue

Shares of Match Group (MTCH) fell more than 5% Wednesday when the operator of Tinder and other online dating services warned that its current-quarter revenue would be lower than originally thought because of disadvantageous currency exchange (FX) rates. 

Match Group reported ahead of its first investor day that when including the impact of FX, it “expects Q4 Total Revenue and Tinder Direct Revenue to be below the outlook previously provided.”

In its third-quarter earnings report, Match Group estimated Q4 revenue between $865 million and $875 million, with Tinder revenue of $480 million to $485 million. The company said Wednesday that the FX hit will be about $15 million more than expected then, with about two-thirds of that attributable to Tinder. 

Tinder New User Declines on Apple iOS ‘Have Not Fully Recovered’

Also weighing on shares was the update on Tinder’s new user declines on Apple iOS, which Match Group noted “remain stable at lower levels but have not fully recovered to the early September trend line.”

On the plus side for investors, the company announced another $1.5 billion in stock buybacks, to take effect when the $247 million remaining in the current share repurchase authorization is exhausted.

Match Group shares are down about 14% year-to-date.