Match Group Q1 2021 Earnings Report
Key Takeaways
Match Group's total revenue grew by 23% year-over-year to $668 million. Operating income increased by 38% to $189 million, representing a 28% operating margin. Average Subscribers increased 12% to 11.1 million, and ARPU increased 9% to $0.64.
Total revenue grew 23% over the prior year quarter to $668 million.
Tinder Direct Revenue grew 18% year-over-year, driven by 15% Average Subscriber growth, and ARPU growth of 4%.
Operating income was $189 million, an increase of 38% over the prior year quarter representing an operating margin of 28%.
Average Subscribers increased 12% to 11.1 million, up from 9.9 million in the prior year quarter.
Match Group
Match Group
Match Group Revenue by Segment
Match Group Revenue by Geographic Location
Forward Guidance
For Q2 2021, Match Group expects total revenue of $680 – $690 million, representing 22%-24% year-over-year growth. Adjusted EBITDA is expected to be $255 to $260 million.
Positive Outlook
- Total revenue of $680 – $690 million, representing 22%-24% year-over-year growth
- Both the Tinder and Non-Tinder businesses to contribute growth of 20%+
- Continue to see recovery across the portfolio, especially compared to Q2 2020, which was impacted by COVID.
- The accelerating re-openings in the U.S. have driven improvement at many of our brands.
- Increasingly confident that we are on track to achieve the high end of our previously provided ranges of mid to high-teens revenue and EBITDA growth for full year 2021.
Challenges Ahead
- Anticipate investing into this momentum by spending an incremental ~$40 million on sales and marketing compared to Q2 2020.
- The situation in the rest of the world remains more mixed, with the COVID trends in India, Brazil, Japan and certain European markets worsening.
- Varying trends by country and slow progress on vaccine distribution make it clear that the post-pandemic recovery is going to take some time to play out.
- There will be incremental sales and marketing spend.
- COVID trends in some countries are worsening.
Revenue & Expenses
Visualization of income flow from segment revenue to net income