Match Group, Inc. is a leading provider of digital technologies that facilitate meaningful connections through a diverse portfolio of dating brands, including Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, and BLK, among others . These brands cater to various user preferences and are accessible in over 40 languages worldwide . The company's revenue primarily comes from direct user payments for subscriptions and à la carte features, with additional income from online advertising . Match Group is organized into four operating segments: Tinder, Hinge, Match Group Asia (MG Asia), and Evergreen & Emerging Brands (E&E), focusing on product innovation and AI-driven initiatives to enhance user experience and drive growth .
- Tinder - Operates as the largest brand within Match Group, offering a popular dating app that connects users globally.
- Hinge - Provides a dating app designed to be deleted, focusing on fostering long-term relationships.
- Match Group Asia (MG Asia) - Manages the company's operations and brand presence in the Asian market, adapting to regional preferences.
- Evergreen & Emerging Brands (E&E) - Encompasses a variety of established and new dating brands, each tailored to specific user demographics and interests.
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What went well
- Tinder's new features, such as "Spotlight drops" and an expanded "Explore" tab, are showing promising early results in enhancing user engagement, especially among younger users and women.
- Hinge is advancing its innovations with AI-enabled features, like prompt suggestions, to enrich user experiences and facilitate more meaningful conversations that lead to great dates faster.
- The emerging brands are nearing the point where their revenue growth will offset the declines from the evergreen brands, with expectations to cross over in 2025, indicating future overall revenue growth.
What went wrong
- Delays in rolling out new monetization features at Tinder due to cannibalization concerns and mixed test results could impact revenue growth. Bernard Kim mentioned that features like "Like You" showed cannibalistic effects on Gold subscriptions, necessitating careful testing and refinement, which slows down revenue-enhancing feature rollouts.
- Revenue declines in Evergreen brands are not fully offset by growth in emerging brands, with the crossover point where growth exceeds declines not expected until 2025. Gary Swidler indicated that direct revenue from Evergreen and Emerging brands declined 9% year-over-year, and the company is "very close" but has not yet reached the point where emerging brands compensate for declines.
- Expectations of reduced advertising revenue in Q4 due to advertisers pulling back, leading to a slight guide down on ad revenue. Gary Swidler noted that some advertisers plan to spend less in Q4, affecting the company's advertising revenue outlook.
Q&A Summary
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2025 Outlook Impact
Q: Can you give more color on the impact from the Q4 guidance on 2025 outlook?
A: Gary Swidler explained that while they have a good handle on Hinge's trajectory and other stable businesses, Tinder's performance will significantly influence the 2025 outlook. Recent developments at Tinder, including weaker momentum over the last 1.5 months, have introduced some uncertainty ( ). They plan to provide more details at the Investor Day and are focusing on improving Tinder's ecosystem and margins. -
Tinder MAU Trends and Margins
Q: What's happening with Tinder's top-of-funnel trends and is the 52% operating margin appropriate long-term?
A: Bernard Kim noted a step back in Tinder's MAU growth starting mid-September due to possible causes like iOS 18 introduction and trust and safety enhancements, but doesn't see it as a long-term shift ( ). Gary Swidler mentioned that Tinder's margins have declined slightly due to increased investments in marketing and product development, and they will proceed carefully on margins until they see real product transformations ( ). -
Tinder Payer Trends
Q: Is lower Q4 payer number due to pull-forward or other issues like MAU and iOS?
A: Gary Swidler indicated that weaker MAU momentum starting in late Q3 and into Q4, combined with iOS issues affecting higher-value users, is making it more difficult on the payer front in Q4 ( ). They are targeting a mid-single-digit year-over-year payer decline and are working to improve the MAU situation. -
Hinge Revenue Growth
Q: Can you provide color on Hinge's revenue growth deceleration in Q4?
A: Gary Swidler explained that the deceleration is due to tough comparisons against last year's Q4, when Hinge rolled out weekly subscription packages leading to a significant revenue jump ( ). Despite this, they are pleased with Hinge's strong user growth and expect continued robust revenue additions in 2025 similar to 2024. -
Tinder Product Delays
Q: What's contributing to delays in a la carte features and unbundling at Tinder?
A: Bernard Kim stated that careful testing is essential to understand the impact on revenue and the ecosystem, which sometimes leads to more rounds of iteration ( ). They are refining features like Passport and Like You due to cannibalization effects on subscriptions and are optimistic about rolling out the first three features broadly in the coming months. -
Emerging Brands Offsetting Declines
Q: How close are emerging brands to offsetting Evergreen declines?
A: Gary Swidler mentioned that gains in revenue at emerging brands are coming close to offsetting declines in Evergreen brands ( ). They expect to cross the threshold where emerging growth exceeds Evergreen declines sometime in 2025 and see significant margin improvement in the E&E business, aiming for margins north of 30% by 2026. -
Managing Margins and Investments
Q: How do you ensure appropriate investment levels across the business while maintaining margins?
A: Gary Swidler explained that they carefully balance investments, focusing on making the right trade-offs among brands at different stages of growth ( ). They've invested in Tinder and expanded Hinge internationally, while offsetting costs by actions like exiting live streaming and redeploying funds to higher-return areas. -
Consideration of Divestitures
Q: Are you and the Board considering divestitures?
A: Gary Swidler stated that they are open to any actions that drive shareholder value and constantly evaluate their portfolio and investments ( ). However, the enhanced disclosure this quarter was not driven by considerations of divestitures but to provide investors with deeper insights into each business unit. -
Advertising Pullback and Marketing Shift
Q: Why is there an advertiser pullback during the holidays and a shift in marketing spend into Q4?
A: Gary Swidler noted that some large advertisers plan to spend less in Q4 due to the crowded holiday market, resuming spending in Q1 ( ). They are being cautious with Tinder's marketing, focusing on product improvements first, while increasing marketing spend for Hinge due to its strong performance. -
Tinder Brand Perception and New CFO
Q: How is Tinder's brand perception trending and what's the reason for appointing Steve Bailey as CFO now?
A: Bernard Kim stated that focus remains on Gen Z and women, with product initiatives rolling out to address their needs and reinforce brand perception without increasing marketing spend as a percentage of revenue ( ). Regarding Steve Bailey, he has deep knowledge from over 12 years at Match Group, and the transition has been in the works for quite a while ( ). -
Hinge's 'Your Turn Limits' Feature
Q: Has the 'Your Turn Limits' feature at Hinge impacted user growth or churn?
A: Bernard Kim mentioned that the feature has received positive global response, addressing the ghosting problem in dating apps, but it's tough to link product launches directly to user growth immediately ( ). The timing of Hinge's strong Q3 and early Q4 performance aligns with this feature's launch. -
Tinder Product Developments
Q: What impact are you seeing from Tinder's new products like Spotlight Drops and the expanded Explore tab?
A: Bernard Kim reported that these features are helping users find more people they are genuinely interested in, with early promising results ( ). They are gathering valuable insights to shape future innovations planned for 2025, focusing on improving ecosystem health and user outcomes.
- Given Tinder's recent step back in MAU growth starting in mid-September and the potential causes such as iOS 18 and trust and safety enhancements , how confident are you that these issues are temporary, and what specific measures are you implementing to reverse this trend?
- With new a la carte features at Tinder experiencing cannibalization of existing subscriptions and requiring extended testing , how do you plan to mitigate cannibalization while driving revenue growth through these features, and what is the timeline for broader rollout?
- Despite significant investments in product and marketing at Tinder, the revenue improvements have not met expectations ; how are you evaluating the return on these investments, and what changes are you making to ensure they lead to sustainable growth?
- You mentioned that gains in revenue at emerging brands are coming close to offsetting declines in evergreen brands, aiming for a crossover point in 2025 ; what gives you confidence in this trajectory, and what risks could delay reaching this crossover?
- Considering the recent exit from live streaming services and new disclosures on business unit profitability , are you reconsidering your portfolio strategy, and is divestiture of underperforming assets or additional strategic actions under active consideration?
Q3 2024 Earnings Call
- Issued Period: Q3 2024
- Guided Period: Q4 2024 and FY 2024
Guidance for Q4 2024:
- Total Revenue: $865 million to $875 million, flat year-over-year.
- Tinder Direct Revenue: $480 million to $485 million, down 2% to 3% year-over-year.
- Tinder Payers: Decline mid-single digits year-over-year.
- Other Brands Direct Revenue: $370 million to $375 million, up 3% to 5% year-over-year.
- Hinge Direct Revenue: Approximately $145 million, 25% year-over-year growth.
- AOI (Adjusted Operating Income): $335 million to $340 million.
- Margins: 39% at the midpoint.
- Marketing Spend: Lower than the prior year quarter.
Guidance for FY 2024:
- Total Revenue Growth: Approximately 4%, 5% FX neutral.
- Tinder Direct Revenue Growth: 1% to 2%, 3% FX neutral.
- AOI Margins: At least 36%.
- Free Cash Flow: Approximately $1 billion .
Q2 2024 Earnings Call
- Issued Period: Q2 2024
- Guided Period: Q3 2024
Guidance for Q3 2024:
- Total Revenue: $895 million to $905 million, up 2% to 3% year-over-year.
- Tinder Direct Revenue: $505 million to $510 million, roughly flat year-over-year.
- Other Brands Direct Revenue: $375 million to $380 million, up 5% to 6% year-over-year.
- Hinge Direct Revenue: Approximately $145 million, 35% year-over-year growth.
- AOI (Adjusted Operating Income): $335 million to $340 million.
- Marketing Spend: Up about 6% year-over-year.
- Tinder Payers: Decline around 5% year-over-year.
- Full Year 2024 Revenue Growth: Approximately 5%.
- Full Year 2024 AOI Margin: Target of 36% .
Q1 2024 Earnings Call
- Issued Period: Q1 2024
- Guided Period: Q2 2024
Guidance for Q2 2024:
- Total Revenue: $850 million to $860 million, 2% to 4% year-over-year increase.
- Tinder Direct Revenue: $475 million to $480 million, flat to up 1% year-over-year.
- Other Brands Direct Revenue: $360 million to $365 million, up 5% to 7% year-over-year.
- Hinge Direct Revenue: $125 million to $130 million, 38% to 44% year-over-year growth.
Guidance for Full Year 2024:
- Total Company Revenue Growth: Near the lower end of 6% to 9% year-over-year.
- AOI Margin: At least 36%.
- Free Cash Flow: Nearly $1.1 billion .
Q4 2023 Earnings Call
- Issued Period: Q4 2023
- Guided Period: Q1 2024 and FY 2024
Guidance for Q1 2024:
- Total Revenue: $850 million to $860 million, up 8% to 9% year-over-year.
- Tinder Direct Revenue: $480 million to $485 million, up 9% to 10% year-over-year.
- Other Brands Direct Revenue: $355 million to $360 million, up 7% to 8% year-over-year.
- Hinge Direct Revenue: Approximately $120 million, 45% year-over-year growth.
- Match Group AOI: $270 million to $275 million.
Guidance for FY 2024:
- Total Revenue: $3.565 billion to $3.665 billion, 6% to 9% year-over-year growth.
- Tinder Direct Revenue: $2.025 billion to $2.075 billion, 6% to 8% growth.
- Other Brands Direct Revenue: $1.480 billion to $1.530 billion, 6% to 10% growth.
- Hinge Direct Revenue: $535 million to $545 million, 35% to 38% growth.
- Indirect Revenue: Approximately $60 million, up 8% year-over-year.
- FX Impact: 2-point headwind in Q1, 1.5-point headwind for the full year.
- AOI Margins: At least 36%.
- Marketing Spend: Increase by $30 million year-over-year.
- Incremental Expenses: Various increases in product innovation and marketing.
- App Store Fee Changes: $20 million annualized benefit .
Competitors mentioned in the company's latest 10K filing.
- Facebook: Offers a dating feature on its platform, which has grown dramatically in size supported by Facebook's massive worldwide user footprint .
Recent developments and announcements about MTCH.
Corporate Leadership
CFO Change
On October 6, 2024, Match Group, Inc. announced the appointment of Steven Bailey as the new Chief Financial Officer (CFO), effective March 1, 2025. He will succeed Gary Swidler, who will continue to serve as the President of the company .