NASDAQ$MTCH

Match Group, Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Revenue increased slightly, driven by payers growth, with Tinder showing improvement and Hinge continuing its strong growth trajectory.

Match Group's Q3 2022 earnings showed slight revenue growth, driven by an increase in payers. Tinder's direct revenue grew, fueled by payers growth. Hinge continued its strong performance with substantial revenue growth. The company is focusing on cost control and strategic investments for 2023.

  • Total Revenue grew 1% year-over-year to $810 million, up 10% on a foreign exchange neutral basis.
  • Tinder Direct Revenue increased by 6% year-over-year, driven by a 7% increase in payers.
  • Operating income was $211 million, a 5% decrease year-over-year, representing a 26% operating margin.
  • Hinge Direct Revenue grew nearly 40% year-over-year, contributing to the overall growth of All Other Brands.

Headline financials

Total Revenue

$810M

Previous: $802M+1.0%
EPS (adj)

$0.44

Previous: $0.43+2.3%
Payers

16.5M

No prior period
RPP

$16.02

No prior period
Capital Expenditures

-$38.4M

Previous: -$52.8M+27.3%
Free Cash Flow

$89.9M

Previous: $78.1M+15.1%
Net Income

$128M

Previous: $131M-2.0%
Operating Income

$211M

Previous: $221M-4.5%
Gross Profit

$563M

Previous: $570M-1.2%
Cash & Equivalents

$391M

Previous: $511M-23.6%
Total Assets

$3.91B

Previous: $4.89B-20.0%
Stock-Based Comp

$53.3M

Previous: $39.6M+34.6%

Revenue & EPS history

Match Group · Revenue · Quarterly

$810M

Q3 2022+1%vs Q3 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

For Q4 2022, Match Group anticipates total revenue between $780 million and $790 million and adjusted operating income between $270 million and $275 million.

Tailwinds

  • Emerging Brands, led by Hinge, BLK, and Chispa, are expected to continue strong year-over-year growth.
  • Cost discipline is expected to take hold in Q4.
  • Tinder's AOI margin is expected to remain best in class.
  • Hinge's ongoing international expansion is expected to lead to continued strong user growth.
  • Global user growth and the new premium tier subscription will enable Hinge to deliver at least an incremental ~$100 million in Direct Revenue in 2023.

Headwinds

  • Total Revenue is expected to be between $780 million and $790 million for Q4 2022.
  • Tinder Direct Revenue is expected to be relatively flat year-over-year due to ALC softness and building product momentum.
  • FX is expected to be nearly a nine-point drag on both Total Revenue and Tinder Direct Revenue growth.
  • Established Brands are expected to show modest aggregate revenue declines.
  • Visibility into 2023 performance is challenging in the current economic environment.

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 2022

Historical avgQ3 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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