NASDAQ$MTCH

Match Group, Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Match Group's revenue increased, driven by growth in both Payers and RPP. Operating income and Adjusted EBITDA also increased, reflecting improved profitability.

Match Group's Q3 2021 saw strong revenue growth, driven by both payers and RPP. Tinder's direct revenue surpassed $400 million for the first time. The company is focused on evolving its portfolio and investing in innovation for long-term growth.

  • Total Revenue grew 25% year-over-year to $802 million.
  • Tinder Direct Revenue grew 20% year-over-year, driven by 19% Payers growth and 1% RPP growth.
  • Operating income increased 10% year-over-year to $221 million, representing a 28% operating margin.
  • All Other Brands collectively grew Direct Revenue 32% year-over-year, driven by 18% RPP growth and 12% Payers growth.

Headline financials

Total Revenue

$802M

Previous: $640M+25.3%
EPS (adj)

$0.43

Previous: $0.45-4.4%
Capital Expenditures

-$52.8M

Previous: -$32.4M-63.1%
Free Cash Flow

$78.1M

Previous: $99.6M-21.6%
Net Income

$131M

Previous: $132M-0.8%
Operating Income

$221M

Previous: $200M+10.2%
Gross Profit

$570M

Previous: $470M+21.2%
Cash & Equivalents

$511M

Previous: $399M+28.2%
Total Assets

$4.89B

Previous: $2.67B+83.3%
Stock-Based Comp

$39.6M

Previous: $37.3M+6.0%

Revenue & EPS history

Match Group · Revenue · Quarterly

$802M

Q3 2021+25.3%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

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

  • Direct Revenue
    $635M

Forward guidance

For Q4 2021, Match Group expects Total Revenue of $810 million to $820 million, representing 24% to 26% year-over-year growth. They anticipate continued momentum at Tinder and Hinge to drive mid-to-high teens annual revenue growth in 2022.

Tailwinds

  • Expect Total Revenue of $810 million to $820 million, representing 24% to 26% year-over-year growth.
  • Tinder Direct Revenue growth to accelerate meaningfully toward the mid-20% range year-over-year.
  • Emerging Brands to continue to grow very strongly year-over-year.
  • Expect total Match Group Q4 2021 Adjusted EBITDA to be in the range of $285 million to $290 million.
  • Expect continued momentum at Tinder and Hinge to drive the mid-to-high teens annual revenue growth that they typically aim for each year.

Headwinds

  • Hyperconnect to deliver a similar level of revenue as in Q3 2021.
  • Reduced full year expectations for Hyperconnect’s revenue contribution by about $20 million.
  • Before providing a 2022 outlook for Adjusted EBITDA, they want to see how app store policies evolve.
  • Hyperconnect to operate at mid-single-digit profitability.
  • Given the current highly competitive labor market, they may choose to invest further in attracting and retaining talent next year.

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 Q3 2021

Historical avgQ3 2021

+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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