Match Group Q1 2022 Earnings Report
Key Takeaways
Match Group's Q1 2022 showed strong performance with a 20% increase in total revenue to $799 million. Tinder's direct revenue grew by 18%, and All Other Brands collectively grew by 22%. The company is navigating macroeconomic challenges, including the war in Ukraine and foreign exchange impacts.
Total Revenue grew 20% year-over-year to $799 million.
Tinder Direct Revenue grew 18% year-over-year, driven by Payers and RPP growth.
Operating income increased 10% over the prior year quarter to $208 million.
Adjusted Operating Income was $273 million, up 19% year-over-year.
Match Group
Match Group
Forward Guidance
Match Group anticipates Q2 2022 Total Revenue to be between $800 to $810 million, representing 13% to 14% year-over-year growth, and Adjusted Operating Income to be between $285 to $290 million.
Positive Outlook
- Continued leverage in sales and marketing spend.
- Post-COVID reopening around the globe.
- The war in Ukraine impact is expected to be approximately one point.
- FX impact is expected to be approximately five points.
- Q2 Adjusted Operating Income outlook includes an estimated $6 million of negative impact from Google’s policy change beginning June 1st.
Challenges Ahead
- Challenging current macroeconomic environment.
- The war in Ukraine is expected to impact revenue by approximately $10 million per quarter.
- Strengthening U.S. dollar is reducing the dollar value of revenue earned in other geographies.
- COVID recovery is gaining momentum more slowly than expected.
- There is a lot of uncertainty that make forward visibility challenging.