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Jun 30, 2023
Match Group Q2 2023 Earnings Report
Achieved record total revenue and demonstrated ability to reignite momentum and position the company for consistent, long-term success.
Key Takeaways
Match Group's Q2 2023 financial results showed a 4% year-over-year increase in total revenue to $830 million. Tinder's revenue grew by 6%, and Hinge's revenue increased by 35%. The company is focusing on AI-enabled capabilities and a product refresh for Gen Z.
Total Revenue grew 4% over the prior year quarter to $830 million.
RPP increased 10% over the prior year quarter to $17.41.
Operating income was $215 million, representing an operating margin of 26%.
Hinge Direct Revenue was up 35% versus the prior year quarter.
Forward Guidance
For Q3, Match Group expects Total Revenue of $875 to $885 million, up 8% to 9% Y/Y compared to Q3 ‘22, and AOI of $320 to $325 million, up 13% to 14% Y/Y.
Positive Outlook
- Tinder can deliver solidly double-digit Y/Y Direct Revenue growth in Q4.
- Hinge, we expect Y/Y Direct Revenue growth in Q3 to further accelerate
- Across MG Asia, we expect low-single digit Y/Y declines in Direct Revenue in Q3, with continued improving performance at Hyperconnect
- Within E&E, we expect low-single digit Y/Y declines in Direct Revenue.
- Match Group is on track to deliver better AOI margins for the full year compared to 2022
Challenges Ahead
- Expects to spend a higher percentage of Total Revenue on marketing in Q3 compared to historical levels
- Expects low-single digit Y/Y declines in Direct Revenue in Q3 for MG Asia
- Expects no notable change at Pairs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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