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Mar 31, 2021
Match Group Q1 2021 Earnings Report
Revenue increased and operating income improved.
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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