NASDAQ$MTCH

Match Group, Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Total revenue grew, driven by payers growth and RPP increase. Operating loss was impacted by an impairment of intangibles relating to the Hyperconnect acquisition.

Match Group's Q2 2022 saw a 12% increase in total revenue to $795 million, driven by a 10% increase in payers and a 3% increase in RPP. However, the company reported an operating loss of $10 million due to a $217 million impairment of intangibles related to the Hyperconnect acquisition. Adjusted Operating Income was $286 million, up 9% year-over-year, with a margin of 36%.

  • Total Revenue grew 12% over the prior year quarter to $795 million (19% growth on foreign exchange (“FX”) neutral basis).
  • Tinder Direct Revenue grew 13% over the prior year quarter driven by 14% Payers growth to 10.9 million partially offset by RPP decline of 1%.
  • Operating loss of $10 million driven by a $217 million impairment of intangibles relating to the Hyperconnect acquisition.
  • Adjusted Operating Income was $286 million, an increase of 9% over the prior year quarter, representing an Adjusted Operating Income Margin of 36%.

Headline financials

Total Revenue

$795M

Previous: $708M+12.3%
EPS (adj)

$0.70

Previous: $0.46+52.2%
RPP

$15.86

Previous: $15.46+2.6%
Capital Expenditures

-$27.3M

Previous: -$32.4M+15.7%
Free Cash Flow

-$59.7M

Previous: $108M-155.2%
Net Income

-$32.4M

Previous: $141M-123.0%
Operating Income

-$10.1M

Previous: $210M-104.8%
Gross Profit

$554M

Previous: $515M+7.6%
Cash & Equivalents

$464M

Previous: $236M+96.1%
Total Assets

$4.19B

Previous: $4.43B-5.4%
Stock-Based Comp

$54.8M

Previous: $42.4M+29.2%

Revenue & EPS history

Match Group · Revenue · Quarterly

$795M

Q2 2022+12.3%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Match Group · $635M total across 1 segment · Q4 2020

  • Direct Revenue
    $635M

Forward guidance

Muted top-line growth is expected in the second half of 2022. Q3 Total Revenue is expected to be $790 to $800 million, essentially flat year-over-year. Q3 Adjusted Operating Income is expected to be $255 to $260 million, implying a margin of 32% at the midpoints.

Tailwinds

  • Changes made at Tinder will lead to improved product execution and velocity, monetization wins, and enhanced user growth.
  • Tinder and the overall company top-line growth rates will accelerate as 2023 progresses.
  • Hinge, BLK, and Chispa to continue to perform strongly and help offset declines at the Established Brands.
  • Expect margins to improve modestly as we remain disciplined on marketing spend and hiring.
  • Expect limited improvement in year-over-year top-line growth rates compared to Q3 with the teams focused on execution against the current product initiatives leading into 2023.

Headwinds

  • Muted top-line growth in the second half of 2022.
  • FX to have an 8-point impact on year-over-year revenue growth in Q3.
  • Tinder year-over-year Direct Revenue growth to be in the mid single-digits (low teens on an FX neutral basis).
  • Higher overall app store fees.
  • Weakness in live streaming business and the Japanese market has yet to show meaningful recovery following the lifting of COVID restrictions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.4%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.7%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+28.5%

Q2 2019

Best reaction

-16.5%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-3.2%-10.0%
Q4 2025+5.9%+12.8%+5.4%
Q3 2025+5.2%+5.6%+9.4%
Q1 2025-9.7%-5.2%+4.8%
Q4 2024-7.9%-7.8%-10.6%
Q3 2024-15.8%-13.5%-10.9%
Q2 2024+14.9%+10.5%+12.0%
Q1 2024-7.5%-4.8%+1.4%
Q4 2023+0.0%-2.5%-6.1%
Q3 2023-14.0%-13.5%-4.9%
Q2 2023-1.6%-5.8%+0.8%
Q1 2023-6.7%-7.6%+5.7%
Q4 2022-1.9%-7.5%-20.4%
Q3 2022+5.9%-0.4%+15.6%
Q2 2022-14.0%-7.8%-24.6%
Q1 2022+4.0%-8.2%+4.3%
Q4 2021+4.7%+2.9%-8.6%
Q3 2021-0.7%+4.3%-16.7%
Q2 2021-6.7%-9.6%-8.8%
Q1 2021-3.2%-1.5%-7.8%
Q4 2020-5.4%+9.5%-1.6%
Q3 2020+11.0%+12.8%+19.5%
Q2 2020+9.3%+5.0%+0.1%
Q1 2020+3.2%-0.2%+12.5%
Q4 2019-4.1%-8.6%-20.9%
Q3 2019-5.9%-3.0%-4.3%
Q2 2019+28.5%+19.9%+14.5%
Q1 2019+8.5%+7.5%+13.1%
Q4 2018+0.1%+3.7%-4.8%
Q3 2018-16.5%-16.6%-19.6%
Q2 2018+18.7%+32.3%+31.3%
Q1 2018+4.1%+14.4%+15.5%
Q4 2017+6.5%+5.6%+31.1%
Q3 2017+6.6%+2.6%+7.6%
Q2 2017+4.2%+3.1%+19.2%
Q1 2017-3.6%+0.7%+1.1%
Q4 2016-5.4%+0.2%-8.0%
Q3 2016-13.1%-14.2%-6.1%
Q2 2016-2.2%-1.7%-2.2%
Q1 2016+13.5%
Q4 2015-1.9%
Q2 2015+7.4%
Q3 2015-0.6%
Q1 2015+2.7%
Q4 2014+1.9%
Q2 2014+1.9%
Q3 2014+0.1%
Q1 2014+0.5%
Q4 2013+2.5%
Q3 2013+3.4%
Q2 2013+1.1%
Q1 2013-0.9%
Q4 2012+0.5%
Q3 2012-0.3%
Q2 2012+1.2%
Q1 2012-0.4%
Q4 2011+3.2%
Q3 2011-3.6%
Q2 2011-6.1%
Q1 2010-0.1%
Q1 2011-0.1%
Q4 2008+0.3%
Q4 2010+0.3%
Q3 2010+0.1%
Q3 2009+0.1%
Q4 2009+0.8%
Q2 2010+0.8%
Q2 2009+0.8%

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