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Jun 30, 2022
Match Group Q2 2022 Earnings Report
Total revenue grew, driven by payers growth and RPP increase. Operating loss was impacted by an impairment of intangibles relating to the Hyperconnect acquisition.
Key Takeaways
Match Group's Q2 2022 saw a 12% increase in total revenue to $795 million, driven by a 10% increase in payers and a 3% increase in RPP. However, the company reported an operating loss of $10 million due to a $217 million impairment of intangibles related to the Hyperconnect acquisition. Adjusted Operating Income was $286 million, up 9% year-over-year, with a margin of 36%.
Total Revenue grew 12% over the prior year quarter to $795 million (19% growth on foreign exchange (“FX”) neutral basis).
Tinder Direct Revenue grew 13% over the prior year quarter driven by 14% Payers growth to 10.9 million partially offset by RPP decline of 1%.
Operating loss of $10 million driven by a $217 million impairment of intangibles relating to the Hyperconnect acquisition.
Adjusted Operating Income was $286 million, an increase of 9% over the prior year quarter, representing an Adjusted Operating Income Margin of 36%.
Match Group
Match Group
Forward Guidance
Muted top-line growth is expected in the second half of 2022. Q3 Total Revenue is expected to be $790 to $800 million, essentially flat year-over-year. Q3 Adjusted Operating Income is expected to be $255 to $260 million, implying a margin of 32% at the midpoints.
Positive Outlook
- Changes made at Tinder will lead to improved product execution and velocity, monetization wins, and enhanced user growth.
- Tinder and the overall company top-line growth rates will accelerate as 2023 progresses.
- Hinge, BLK, and Chispa to continue to perform strongly and help offset declines at the Established Brands.
- Expect margins to improve modestly as we remain disciplined on marketing spend and hiring.
- Expect limited improvement in year-over-year top-line growth rates compared to Q3 with the teams focused on execution against the current product initiatives leading into 2023.
Challenges Ahead
- Muted top-line growth in the second half of 2022.
- FX to have an 8-point impact on year-over-year revenue growth in Q3.
- Tinder year-over-year Direct Revenue growth to be in the mid single-digits (low teens on an FX neutral basis).
- Higher overall app store fees.
- Weakness in live streaming business and the Japanese market has yet to show meaningful recovery following the lifting of COVID restrictions.