Match Group Q3 2023 Earnings Report
Key Takeaways
Match Group's Q3 2023 results showed a 9% year-over-year increase in total revenue to $882 million, with operating income up 16% to $244 million. Tinder's direct revenue grew by 11%, while Hinge saw a 44% increase. The company's Adjusted Operating Income was $333 million, a 17% increase, and free cash flow for the year-to-date reached $571 million.
Total Revenue grew 9% year-over-year to $882 million.
Operating income increased by 16% year-over-year to $244 million, representing a 28% operating margin.
Tinder Direct Revenue was up 11%, and Hinge Direct Revenue increased by 44% year-over-year.
Adjusted Operating Income grew 17% year-over-year to $333 million, with a 38% margin.
Match Group
Match Group
Forward Guidance
For Q4 2023, Match Group expects Total Revenue between $855 million and $865 million and AOI between $305 million and $310 million.
Positive Outlook
- Tinder's continued marketing and product initiatives are expected to drive results in 2024 and beyond.
- Hinge is expected to continue its focus on expansion in Europe and deliver similar year-over-year Direct Revenue growth rates in 2024 as in 2023.
- Match Group aims to maintain AOI margins in 2024 at least at the same level expected in 2023.
- Capital will be allocated towards key growth brands like Tinder and Hinge.
- Investments in innovation, including AI technologies, will continue to address user pain points and increase adoption.
Challenges Ahead
- Q4 revenue outlook includes $27 million more in FX headwinds than previously anticipated.
- There is a risk of approximately $7 million of quarterly revenue from brands in Israel due to ongoing events.
- The outlook reflects some risk of business deterioration due to weakening macro conditions globally.
- Tinder's sequential Payer count will be negatively impacted by more than 200,000 Payers due to U.S. and international weekly subscribers falling out of the Payer count.
- The company faces potential headwinds from IAP and compliance activities, including the implementation of the EU’s Digital Services Act.