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The match brings the Zynga performer as the next CEO, but stocks are falling due to the fact that the prospects are short

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Match Group Inc. attracts a new CEO with a history steeped in gaming as the online dating company continues to rise, but shares fell nearly 7% in trading on Tuesday after the company failed to meet its earnings forecast for the current quarter.

The company announced on Tuesday that Zynga President Bernard Kim will take over the match
MTCH,
-2.07%

The CEO took over as CEO in late May, replacing the current CEO Shara Dubey, who will remain on the Match board of directors.

Kim was president of Zynga
ZNGA,
+ 0.12%

since 2016 and has been involved in areas such as data science, product management and global marketing, according to a Match statement. The company also stressed that it “took off an important role in expanding the company into new markets such as blockchain and hyper-everyday games” and helped Zynga deploy on new platforms including Snap Inc.
SNAP,
-2.00%

Snapchat and Nintendo Co. Ltd.
NTDOY,
+ 0.48%

7974,
-2.35%

Switching console.

Kim spent nearly ten years at Electronic Arts Inc.
EA,
+ 2.09%

before his stay in Zynga.

“It’s hard to find creative, dynamic leaders 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 Chairman Tom McInnerney said in a release. “We had it with Shar [Dubey] and it has become clear to us that Bernard’s accurate track record of success demonstrates the same unwavering commitment to people, products and values ​​for shareholders ”.

Dubby, who is stepping down as CEO, plans to resign as Match Officer, but will “focus on product strategies” and facilitate the transition of leadership through his role on the board.

Match announced a change of CEO along with the latest earnings results, which showed the dating company earned $ 799 million in revenue for the March quarter against $ 668 million a year earlier. Analysts tracked by FactSet expected profits of $ 794 million.

“This strong growth has been achieved despite the negative impact of the Russian invasion of Ukraine on our European business, the prolonged COVID-19 cases and restrictions in various regions, and the negative impact of foreign exchange (” FX “) on our revenues.” , – said in a statement Match.

The company’s net income was $ 180.5 million, or 60 cents per share, while net income was $ 174.3 million, or 57 cents per share, in the previous period.

Tinder’s direct revenue grew 18% year-over-year, and the number of people paying for the service increased 17%.

Match plans to launch Tinder Coins, the app’s currency, globally, over the summer. It is also working on “monetization functions for female users, with the planned launch of a new package targeted at women in the second half of 2022,” the company’s shareholder said in a letter.

Match expects $ 800 to $ 810 million for the June quarter. The FactSet consensus was $ 836 million.

The forecast “reflects the impact of complex macroeconomic conditions,” the Match letter said.

On Tuesday, Match also reported that its board had allowed a buyout of up to 12.5 million shares. The repurchase authorization reflects “Match’s confidence in our team and the prospects of our business,” the company said in a letter.

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