Match Group, Inc. ((MTCH)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Match Group, Inc.’s recent earnings call painted a mixed picture, highlighting both achievements and challenges. The sentiment was buoyed by strong growth at Hinge and effective cost management, yet tempered by difficulties at Tinder and in the Asian market, alongside a legal settlement impacting financials.
Hinge Revenue Growth
Hinge demonstrated impressive growth, with direct revenue increasing by 27% year-over-year. This was driven by a 17% increase in payers and a 9% rise in revenue per payer (RPP), underscoring Hinge’s strong momentum and successful international expansion efforts.
Successful Cost Management
Match Group’s financial discipline resulted in approximately $100 million in annualized savings. These savings have been reinvested across the company’s portfolio, fostering operational momentum and supporting further growth initiatives.
Improved User Experience at Tinder
Tinder introduced new features such as Chemistry and Double Date, which have significantly enhanced user engagement. Notably, Double Date adoption increased by 30% in the U.S., and College Mode is gaining traction among younger users.
Face Check Initiative
The Face Check initiative has led to a 60% reduction in user views of profiles identified as bad actors, boosting user trust. This is reflected in an improved Net Promoter Score, indicating higher user satisfaction.
Strong Performance in Alternative Payments
Testing of alternative payment methods has yielded promising results, with expected savings of approximately $14 million in Q4 and $90 million by 2026, showcasing the potential for significant cost efficiencies.
Tinder Revenue Decline
Tinder faced a 3% decline in direct revenue year-over-year, with a 7% decrease in payers. Additionally, adjusted EBITDA fell by 23%, highlighting ongoing challenges in maintaining growth.
Challenges in Match Group Asia
Match Group Asia experienced a 4% decline in direct revenue, largely due to the blockage of the Azar app in Turkey, which impacted revenue by an estimated $3 million, illustrating the region’s regulatory challenges.
Legal Settlement Impact
A $61 million charge was incurred to settle an age-based pricing lawsuit involving Tinder, which adversely affected the company’s adjusted EBITDA, highlighting the financial impact of legal challenges.
E&E Revenue Challenges
E&E’s direct revenue decreased by 4% year-over-year, with a 13% decline in payers. The performance was weaker than expected, with no growth anticipated from Emerging brands in 2025, indicating a need for strategic adjustments.
Forward-Looking Guidance
In its guidance, Match Group reported a total revenue of $914 million for the third quarter, a 2% year-over-year increase. Adjusted EBITDA was $301 million, down 12% year-over-year, excluding the legal settlement. Looking ahead, the company is focusing on product improvement and marketing, particularly for Tinder and Hinge, to drive long-term growth. Q4 revenue is projected to be between $865 million and $875 million, with adjusted EBITDA expected to range from $350 million to $355 million.
In summary, Match Group, Inc.’s earnings call revealed a complex landscape of growth and challenges. While Hinge’s performance and cost management efforts are commendable, Tinder’s struggles and regional challenges in Asia present hurdles. The company’s forward-looking guidance suggests a strategic focus on enhancing user experience and operational efficiencies to sustain growth.