Match brings in Zynga exec as next CEO, but stock falls as outlook comes up short

Match Group Inc. incorporates a new CEO with a history full of games as the online dating company pursues continued growth, but shares fell nearly 7% in out-of-hours trading on Tuesday after the company ran out short with its revenue outlook for the current quarter.

The company announced on Tuesday that Zynga president Bernard Kim will take over the MTCH Match.
CEO in late May, replacing current CEO Shar Dubey, who will remain on Match’s board of directors.

Kim has been the president of Zynga ZNGA,
+ 0.12%
since 2016 and participated in areas such as data science, product management and global marketing, according to Match’s statement. The company also noted that “it was instrumental in expanding the business into new markets such as blockchain and hyper-casual gaming” and helped Zynga introduce new platforms, including Snap Inc.’s SNAP.
Nintendo Co.’s Snapchat and NTDOY Ltd.,
+ 0.48%

Switch console.

Kim spent nearly a decade at Electronic Arts Inc. EA,
+ 2.09%
before his passage to Zynga.

“It’s hard to find creative, dynamic executives who are able to lead an organization and promote a culture that produces innovative products, embraces new technologies, and attracts and retains the best people,” Match President Tom McInerney said in a statement. “It simply came to our notice then [Dubey] and it made it clear to us that Bernard’s clear track record of success demonstrates the same unwavering commitment to people, products and shareholder value. “

Dubey, the outgoing CEO, plans to resign as Match official, but will “focus on product strategy” and help with the leadership transition through her role on the board.

Match announced the change of CEO along with its latest earnings results, which showed that the dating company generated revenue of $ 799 million during the March quarter, up from $ 668 million the previous year. Analysts followed by FactSet were expecting revenue of $ 794 million.

“This strong growth was achieved despite the negative impacts of the invasion of Ukraine by Russia on our European business, the continuity of COVID-19 cases and restrictions in several geographical areas and the negative effects of foreign exchange (‘ FX ‘) in our revenue, “Match said in a letter to shareholders.

The company reported net income of $ 180.5 million, or 60 cents per share, while net income of $ 174.3 million, or 57 cents per share, in the previous year. .

Tinder’s direct revenue increased 18% year-over-year, while the company saw a 17% increase in the number of people paying for the service.

Match plans to launch a global launch of Tinder Coins, an in-app currency, over the summer. It is also working on “monetization features designed for female users, with a planned launch of a new women-centered package during the second half of 2022,” according to the company’s shareholder letter.

For the June quarter, Match expects revenue of $ 800 million to $ 810 million. FactSet’s consensus was $ 836 million.

The outlook “reflects the impact of today’s challenging macroeconomic environment,” Match said in his letter.

Match also revealed on Tuesday that its board had authorized the repurchase of up to 12.5 million shares. The repurchase authorization reflects “Match’s confidence in our team and the prospects for our business,” the company said in its letter to shareholders.

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