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Sep 30, 2021
Match Group Q3 2021 Earnings Report
Match Group's revenue increased, driven by growth in both Payers and RPP. Operating income and Adjusted EBITDA also increased, reflecting improved profitability.
Key Takeaways
Match Group's Q3 2021 saw strong revenue growth, driven by both payers and RPP. Tinder's direct revenue surpassed $400 million for the first time. The company is focused on evolving its portfolio and investing in innovation for long-term growth.
Total Revenue grew 25% year-over-year to $802 million.
Tinder Direct Revenue grew 20% year-over-year, driven by 19% Payers growth and 1% RPP growth.
Operating income increased 10% year-over-year to $221 million, representing a 28% operating margin.
All Other Brands collectively grew Direct Revenue 32% year-over-year, driven by 18% RPP growth and 12% Payers growth.
Match Group
Match Group
Forward Guidance
For Q4 2021, Match Group expects Total Revenue of $810 million to $820 million, representing 24% to 26% year-over-year growth. They anticipate continued momentum at Tinder and Hinge to drive mid-to-high teens annual revenue growth in 2022.
Positive Outlook
- Expect Total Revenue of $810 million to $820 million, representing 24% to 26% year-over-year growth.
- Tinder Direct Revenue growth to accelerate meaningfully toward the mid-20% range year-over-year.
- Emerging Brands to continue to grow very strongly year-over-year.
- Expect total Match Group Q4 2021 Adjusted EBITDA to be in the range of $285 million to $290 million.
- Expect continued momentum at Tinder and Hinge to drive the mid-to-high teens annual revenue growth that they typically aim for each year.
Challenges Ahead
- Hyperconnect to deliver a similar level of revenue as in Q3 2021.
- Reduced full year expectations for Hyperconnect’s revenue contribution by about $20 million.
- Before providing a 2022 outlook for Adjusted EBITDA, they want to see how app store policies evolve.
- Hyperconnect to operate at mid-single-digit profitability.
- Given the current highly competitive labor market, they may choose to invest further in attracting and retaining talent next year.