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Jun 30, 2024
Match Group Q2 2024 Earnings Report
Match Group's Q2 2024 results were delivered slightly ahead of expectations, with revenue growing and strategic decisions made to enhance growth and margin profile.
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
Match Group Revenue by Segment
Revenue by Segment
Direct Revenue
CapyFin.com 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.