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Sep 30, 2022
Match Group Q3 2022 Earnings Report
Revenue increased slightly, driven by payers growth, with Tinder showing improvement and Hinge continuing its strong growth trajectory.
Key Takeaways
Match Group's Q3 2022 earnings showed slight revenue growth, driven by an increase in payers. Tinder's direct revenue grew, fueled by payers growth. Hinge continued its strong performance with substantial revenue growth. The company is focusing on cost control and strategic investments for 2023.
Total Revenue grew 1% year-over-year to $810 million, up 10% on a foreign exchange neutral basis.
Tinder Direct Revenue increased by 6% year-over-year, driven by a 7% increase in payers.
Operating income was $211 million, a 5% decrease year-over-year, representing a 26% operating margin.
Hinge Direct Revenue grew nearly 40% year-over-year, contributing to the overall growth of All Other Brands.
Match Group
Match Group
Forward Guidance
For Q4 2022, Match Group anticipates total revenue between $780 million and $790 million and adjusted operating income between $270 million and $275 million.
Positive Outlook
- Emerging Brands, led by Hinge, BLK, and Chispa, are expected to continue strong year-over-year growth.
- Cost discipline is expected to take hold in Q4.
- Tinder's AOI margin is expected to remain best in class.
- Hinge's ongoing international expansion is expected to lead to continued strong user growth.
- Global user growth and the new premium tier subscription will enable Hinge to deliver at least an incremental ~$100 million in Direct Revenue in 2023.
Challenges Ahead
- Total Revenue is expected to be between $780 million and $790 million for Q4 2022.
- Tinder Direct Revenue is expected to be relatively flat year-over-year due to ALC softness and building product momentum.
- FX is expected to be nearly a nine-point drag on both Total Revenue and Tinder Direct Revenue growth.
- Established Brands are expected to show modest aggregate revenue declines.
- Visibility into 2023 performance is challenging in the current economic environment.