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Dec 31, 2022
Match Group Q4 2022 Earnings Report
Match Group's Q4 2022 performance was below expectations, but corrective changes were implemented, and momentum is expected to build in 2023.
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.