Sep 30, 2024

Match Group Q3 2024 Earnings Report

Match Group's Q3 2024 performance reflected revenue growth and exceeded adjusted operating income expectations.

Key Takeaways

Match Group's Q3 2024 saw a 2% increase in total revenue year-over-year to $895 million, with adjusted operating income rising by 3% to $343 million. Tinder's payer trends improved, while Hinge experienced substantial revenue growth. The company is focused on innovation, efficiency, and managing its diverse brand portfolio.

Total Revenue increased by 2% year-over-year to $895 million, or 3% on an FX neutral basis.

Adjusted Operating Income grew by 3% year-over-year to $343 million, with a 38% margin.

Tinder's payer trends improved, with sequential payer additions of 311,000.

Hinge Direct Revenue grew 36% year-over-year, achieving record downloads.

Total Revenue
$895M
Previous year: $882M
+1.6%
EPS
$0.51
Previous year: $0.57
-10.5%
Gross Profit
$642M
Previous year: $626M
+2.6%
Cash and Equivalents
$861M
Previous year: $707M
+21.8%
Free Cash Flow
$252M
Previous year: $278M
-9.5%
Total Assets
$4.43B
Previous year: $4.25B
+4.2%

Match Group

Match Group

Forward Guidance

For Q4 2024, Match Group expects total revenue of $865 to $875 million, representing flat growth year-over-year. Excluding the impact of exited live streaming services, revenue is expected to grow by 2% to 3%. Adjusted Operating Income is projected to be $335 to $340 million, with a margin of 39%.

Positive Outlook

  • Match Group Total Revenue expected to be up 2% to 3% Y/Y, excluding revenue from exited live streaming services.
  • Hinge Direct Revenue expected to grow ~25% Y/Y.
  • Q4 Match Group AOI margin of 39% at the midpoints of the ranges.
  • Across other brands, Direct Revenue expected to be $370 to $375 million, representing 3% to 5% Y/Y growth.
  • Tinder expects modest improvements in RPP.

Challenges Ahead

  • Match Group Total Revenue expected to be essentially flat Y/Y.
  • Tinder Direct Revenue expected to be down 2% to 3% Y/Y.
  • Tinder expects mid-single-digit Y/Y declines in Payers.
  • Q4 Match Group AOI to be down 6% to 7% Y/Y, but up 4% to 6% Y/Y excluding the $40 million escrow refund.
  • Indirect Revenue to be approximately $15 million in the quarter.