Match Group Q2 2024 Earnings Report
Key Takeaways
Match Group's Q2 2024 saw a 4% increase in total revenue to $864 million. Tinder's initiatives stabilized user trends, while Hinge continued its exceptional growth. Strategic decisions were made to exit live streaming services to focus on core businesses.
Total Revenue grew 4% year-over-year to $864 million, or 8% on an FXN basis.
Operating income was $205 million, a decrease of 5% year-over-year.
Adjusted Operating Income increased 2% year-over-year to $306 million.
Hinge Direct Revenue increased 48% year-over-year.
Match Group
Match Group
Forward Guidance
For Q3 2024, Match Group expects Total Revenue of $895 to $905 million, with Tinder Direct Revenue of $505 to $510 million and Hinge Direct Revenue of approximately $145 million. Match Group AOI is expected to be $335 to $340 million.
Positive Outlook
- Total Revenue expected to be $895 to $905 million, up 2% to 3% Y/Y (up 4% to 5% Y/Y FXN).
- Tinder Direct Revenue expected to be $505 to $510 million, roughly flat compared to Q3 '23 (up ~2.5% Y/Y FXN).
- Tinder Payers expected to improve further on a Y/Y basis in Q4.
- Hinge Direct Revenue expected to be approximately $145 million, representing 35% Y/Y growth.
- Match Group AOI of $335 to $340 million, up slightly Y/Y, with a margin of 37.5% at the mid-points of the ranges.
Challenges Ahead
- Revenue impact of exiting live streaming services over the course of Q3 is estimated at roughly $8 million.
- FX headwinds have worsened by roughly one point since last earnings call.
- Tinder Payers expected to be down approximately 5% on a Y/Y basis in Q3.
- Q3 OI to be impacted by roughly $50 million of impairments of intangibles and other charges related to our exit of live streaming services.
- Our AOI range for the quarter reflects approximately $6 million in employee severance and other charges related to the exit of live streaming as well as approximately $1 million of Canada Digital Services Tax.