Match Group stock fell 3% in premarket trading on Wednesday as the lingering effects of Covid-19 resulted in a quarterly forecast that fell short of expectations.
The owner of the popular dating app Tinder said it is still feeling some Covid effects across Asia, particularly in Japan, its second-largest revenue market.
Simultaneously, it stated that it expects "improvement as mobility restrictions are lifted, vaccine levels continue to rise, and case counts fall."
The company anticipates fourth-quarter total revenue of $815 million at the midpoint, a 25 % year-over-year increase similar to July through September growth but lower than the 27 % seen in the second quarter.
Issues at Hyperconnect, a purchase Match made to obtain the South Korean firm's app Azar, weighed on the outlook as well. The app's usage has dropped, and there have been issues with product development.
Match stated that it is incorporating new interactions and live experiences into its apps. This includes adding videos to Tinder profiles and 'Plus One'-style features to assist singles in finding dates to take to a wedding.
Revenue for the third quarter was $801.8 million, which was less than expected. The adjusted profit per share of 43 cents fell short of expectations as well. The company increased its payer base by 16.3 million people, a 16 % increase. Revenue per payer increased by 8%.