Match Group Q3 2021 Earnings Report
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.