Match Group Q4 2022 Earnings Report
Key Takeaways
Match Group's total revenue for Q4 2022 declined by 2% year-over-year to $786 million. Tinder's direct revenue was flat, while Hinge's direct revenue grew nearly 30%. The company is focusing on streamlining operations and maximizing profitability.
Total Revenue declined 2% year-over-year to $786 million (5% growth on an FX neutral basis).
Tinder Direct Revenue was flat (+8% FXN) year-over-year with 3% Payers growth, offset by RPP declines of 2%.
Operating income was $107 million, a 54% decrease year-over-year, representing a 14% operating margin, reflecting $102 million of impairments.
Hinge Direct Revenue grew nearly 30% year-over-year.
Match Group
Match Group
Forward Guidance
Match Group expects Q1 2023 Total Revenue of $790 to $800 million, roughly flat year-over-year, and Adjusted Operating Income of $250 to $255 million, representing a margin of 32% at the midpoint.
Positive Outlook
- Tinder Direct Revenue to be up slightly year-over-year.
- Hinge Direct Revenue growth to be up more than 25% year-over-year.
- Marketing spend to increase at Tinder and Hinge, offset by reductions in most of our other brands.
- For full year 2023, reaffirm focus on delivering 5% to 10% year-over-year growth, in both Match Group Total Revenue and Tinder Direct Revenue.
- Expect Hinge to deliver nearly $400 million of Direct Revenue in 2023.
Challenges Ahead
- Macroeconomic pressures are expected to remain challenging at least through the first half of 2023.
- In-app purchase fees, which include $8 million paid into the escrow related to the Google litigation, are a significant year-over-year headwind.
- Expect to incur $3 to $5 million in severance and similar costs in Q1 2023.
- Expect margins to show year-over-year improvement in the second half of the year as revenue growth accelerates and cost savings are realized.
- Expect to be a U.S. federal cash taxpayer in 2023 and in subsequent years.