Revenue Guidance and Margin Outlook
Q: Why does Q1 guide imply a slowdown despite solid dating season start?
A: Steven Bailey explained that while user trends have been solid at Tinder and Hinge during peak season, the immediate revenue impact is modest due to timing. Tinder's year-over-year direct revenue growth reflects stabilizing but still negative MAU trends and planned trust and safety initiatives. Additionally, foreign exchange headwinds and the fact that last year was a leap year reduce year-over-year revenue growth by about 1 percentage point in the quarter. They remain confident in the 2025 revenue trajectory, expecting improving year-over-year trends as the year progresses.

Margin Outlook and Investments
Q: How does the margin outlook for 2025 align with investments?
A: Steven Bailey stated they are committed to delivering at least 50 basis points of margin expansion in 2025. This is at the lower end of the range provided at Investor Day due to worsening FX headwinds, primarily at Tinder. They aim to ensure they can make planned investments in product innovation at Tinder to achieve their three-year revenue growth objectives. They remain confident in achieving their three-year margin target of 39%.

Tinder MAU Trends and Return to Growth
Q: Can Tinder MAUs return to year-over-year growth in 2025?
A: Gary Swidler noted that Tinder's MAU trends have improved over the last few months as the effect of prior iOS issues has begun to dissipate. Global Tinder MAUs were down about 10% year-over-year in October, improving to about 8% down in January. While progress is positive, returning to growth is not currently included in their outlook. They are focused on rolling out product initiatives to drive further improvement.

Impact of Trust and Safety Initiatives
Q: How will trust and safety changes affect user growth in 2025?
A: Gary Swidler acknowledged that trust and safety initiatives at Tinder can impact both users and revenue. They are iterating these features to maximize effectiveness in removing bad actors while minimizing effects on good users and revenue. They monitor KPIs such as reductions in reports of bad actors. The outlook includes effects of biometrics in Canada and face photo requirements in several markets. Spencer Rascoff added that cleaning up the ecosystem is mission-critical, driving real business outcomes like improved net promoter score, positive word of mouth, better retention, and lower customer acquisition costs.

Leadership Change and Strategic Direction
Q: Why is now the right time for a leadership change, and how will strategy evolve?
A: Spencer Rascoff stated that the transition will be smooth as he was already on the Board and familiar with the team and strategy. He stands behind the strategy and financial targets from Investor Day and is focused on executing the plans with urgency and accountability.

Tinder Monetization and A la Carte Features
Q: Update on Tinder's a la carte features and expected revenue contribution?
A: Steven Bailey reported that they rolled out "First Impressions" in December, allowing users to send contextual messages on specific profile elements. User adoption has been solid, and users who send a first impression are more likely to get a match. They have reduced cannibalization impact, and it is adding incremental revenue. The expected contribution from revised a la carte features at Tinder on 2025 revenue is relatively small.

Monetization Strategy
Q: Should there be more focus on monetizing non-paying users?
A: Spencer Rascoff emphasized that they focus on maximizing total revenue rather than the number of paying users. Steven Bailey added that they are constantly testing and optimizing for revenue, not specifically RPP or payers. There's significant opportunity to increase focus on monetization optimization at Hinge while continuing to drive user growth.

Hinge's Matching Algorithms and Cross-brand Application
Q: Will Hinge's new matching algorithms be replicated across brands?
A: Steven Bailey confirmed that they can leverage Hinge's advancements across brands. The "Pops Plus" initiative allows them to use shared learnings effectively. They have seen examples like AI Photo Finder being deployed across brands. Spencer Rascoff added that leveraging AI across brands is a key focus, citing prior success with cross-brand innovation.

Emerging Brands Driving Growth
Q: Update on emerging brands contributing to growth?
A: Gary Swidler stated they expect moderating declines at evergreen brands and continued strong growth at emerging brands over the course of 2025. They have been targeting demographic groups, with brands like Chispa and BLK continuing to be strong growers. The recent acquisition of Salaams, focused on the Muslim community, has seen revenues expand by about 50% since acquisition. They plan to continue this strategy to drive growth.