Match (MTCH) 2 Nov 222022 Q3 Earnings call transcript

Good day, and welcome to the Match Group Third Quarter 2022 Earnings Conference Call. All participants are in a listen-only mode. [Operator Instructions]After today’s presentation, there will be an opportunity to ask questions. [Operator Instruction] Please note, this event is being recorded.

I would now like to turn the conference over to Tanny Shelburne, SVP of Investor Relations. ahead. go Please

then and led operator, COO, everyone. call remarks, Today's Swidler. questions. up Thank CEO, good Bernard be and brief few by make and open Kim; will it They'll for you, a morning, we'll and Gary CFO

discuss I statements may statements. may we by such outlook we be call, differ start, that expect, this performance. subject the to and are materially uncertainties, results as we statements similar to preceded These need Before and anticipate we everyone today. future remind expressed during and we from our forward-looking or views actual believe, These words risks our could

risks these release periodic with of and Some our filed been our set forth in reports earnings SEC. have the

to the BK. turn to like over call that, With I'd

for and morning, call. together, team that earnings accelerate call coming Thanks, everyone, today's real action to on time you momentum. The I calls making by, company. to decisive thank and has our joining be Good flown attribute at second and delighted taking I'm the Tanny. to the

of value. is be environment And while to shareholder we quarter of great There have As to a is lot double-digit a exclude and more of. a we When the we macroeconomic you still an That lot me proving create optimistic long-term can significant have third challenging, makes team brands. results portfolio excellent that we FX growth. demonstrate, do. impact, our proud saw work

palpable together, in After there just the a few a at gelling the months, change and is team has been Tinder well culture.

product to big and improve get shipping team and some efficiencies to operations made have changes We accelerating growth. the organizational

and in that product excited one the are so product to features bringing together supporting collaborating about. that shared working team The ensure users teams Some examples marketing team mission. can one with they're building also teams is another this we're revenue challenging and the and as our of get

in team of seen That's attrition. place, a promising. any. new But Whenever with this there's risk always we reorganizations occur, haven't

working dealing moving eventually won't are Tinder We previous disruption. testing, direction. to in together to Instead, are products into but That right the aren't we return we levels. massive with happen overnight, getting more growth

to I XXXX on centers initiatives; paid. opportunities, coins our am power Gen tailored product key to experiences, which users is and X in an women finally, beginning excited targeted how Z providing who shape, monetization through areas: untapped users previously road goods take more creating expanded map evaluating our more about not unlock focus users; and targeting virtual including have various

the again. for a have we to recognize brand tell Tinder component accelerating the Tinder We narrative too powerful let about market is Additionally, long. a growth that critical narrative

we Going across life global to years. working over are forward, the endless stories activate past bring brand XX success campaigns Tinder the levers marketing to to

narrative hand in the of hand working is next redefine to team marketing the singles. generation The for product with

While take believe users. I ability overall, measurable deliver team's the ultimately dating our it will some to fully changes learn, in time and experiment, see for best build experiences to the

next XX Tinder last over more to I the even and committed the transformed years, has am category making exciting. dating XX the

for CEO experience. digital of of a ongoing. Tinder search and Our talented met is leaders bench consumer a a at We've full-time deep with broad diverse set

very want the and role that that work with new deliberate with is This can current into with that do nimble more a new we've leading critically like that on about. typically focus leader pointing work a making on and of organization move But the charge important and be the worth a to It increasing collaboration. to to team, profitability. I'm search. leadership me the establishing it's a lot hard minimal the the role disruption I this team out done growth seamlessly the is CEO already has

plans and the are next business in So I'm performance continue CEO. improve execution and expecting the I moving meantime, months. will over interim forward, coming The will to remain

are successful localization markets quarter. Europe. to and this bright in delivering on spot reaching globally their with a launch Hinge strategy throughout a and Germany to be new continued They market grow share users

express In audio in In the become downloads popular October, product has hopefully a video both most land polls, Hinge experience. daters the the dating and After ways by record on U.S. prompt hit themselves where and innovate the U.S., the continues prompts brand to the app of downloads, globally. was third the team year, Hinge roll date. more successful launch quickly prompts out last to giving quick and to

premium a subscription month, new Hinge start this tier. will Later testing

full tier I'm season peak And confident it's We have resonate drive will the back hold the to it the new meaningfully the higher. really dating. and how an I'm excited together. that coming for with launch of base provide user to RPP opportunity decided until QX, about

a company, in amount lot a As have a we short achieved of time.

plans We diligently have at Hinge environment. challenging have and with growth right current Tinder, the navigate continued ship worked forward to to our operating pushed the at

accelerate time, At work significant that done is be to and there will the same growth. built be our further to amount innovations a of

currently middle and forward I across earnings planning sharing look next in our the portfolio, to are of more during call. the We XXXX process our for

with the did to we of stages different different is I brands growth. I thing more call One business out want in spent as have time

that able has are environment, growing on brands I'll after that this macro be to in for year. pull focus more strategic driving plans strategy in must XXXX. not a we us complete become for our the we areas strategic investment imperative back growth. Given in share are current and our This next

we our I'm mission people around millions so ways. connecting of been never more of company's the meaningful to are in world continuing Our on deliver world and that proud has connected,

everyone and As product, around overall the the group I've the world. talented I'm and of about culture experience our before, people, forward improving with portfolio passionate to look told across user technologists

turn Gary. to And that, I'll with it over

million, up QX August our again year-over-year our of X% The basis. hello $XXX tough were million once revenue we we earnings an and than XX% environment, impact FX BK, call. In year-over-year. with on $XXX we Thanks, $X up everyone. The QX on been provided revenue solid when as headwinds worse a outlook FX-neutral total again, a expected had was million, have would FX our severe

an Our direct year-over-year. at grew year-over-year and the It Hinge, with Tinder the and was grew Established year-over-year but BLK in in FX-neutral driven X% XX% but growth up Europe at basis was revenue Direct Tinder. declined XX% FX-neutral up declines other declined Chispa on revenue Tinder, in basis X% Americas by driven X% an X% also Hinge. Brands. and on revenue by APAC Direct but

were year-over-year in XX.X and our declines an X% in Match, and each Brands, from were of payer and X% payers quarter. Plenty the up had stronger Americas the Fish payer while Established Tinder of OkCupid of Meetic, million, grew over aggregate. increase Total than XX% Payers of saw expected, in Europe we additions including and APAC prior XX% year-over-year year down other.

at $XX.XX QX. for flat a up X% year-over-year improvement, per in X was la higher a increased RPP carte average and in subscriptions was purchases average rates the Americas, sequential and payer RPP Hinge. Tinder reflecting point at

Europe down in dollar other by of and were British RPP Europe, euro offset X% the relative to contributions APAC was U.S. up compared Hyperconnect and and Tinder of company-wide strength XX% RPP from the in in and where X% the On XX% the and the FX-neutral the was the and QX, basis, lira. Turkish yen pound. strength again an was flat other. APAC to dollar due in in year-over-year the up to RPP

and payers Tinder our Tinder expectations had X% again quarter, on a year-over-year, X% quarter, above FX-neutral payers performed basis. year-over-year million $XXX which slightly in an direct decline impact of year-over-year, of revenue XXX,XXX X% in shows delivering growth the XX% the adding up FX. XX.X RPP million, to the of

facing several paywall 'XX, X% that which payer and other Tinder on revenue basis. challenging that in comp. record additions made that Tinder and was drove beneficial QX optimizations FX-neutral RPP We're up quarter. strong sequential Recall an in now

X% revenue drive in Hinge, direct other driven growth. continue payer decline the to an QX All by brands X% RPP growth. and year-over-year and Chispa down X% BLK was

of pull to by be for Plenty particular, continue on conditions. impacted marketing of back macroeconomic in continue spend Established Brands. We to Fish, And some our

Hyperconnect's was Azar X% year-over-year. down Asia, In app revenue

However, and the dollar strength basis, to FX-neutral than was on due the up lira yen. against more an Japanese U.S. XX% it the Turkish the of

face but down revenue to continue down Japan to revenue affected double XX% in low increase year-over-year. than market year-over-year with Payers by digits reported. continues in softness slight more be challenges with Hakuna as only a

operating down income at Indirect $XX was but margin revenue QX Adjusted year-over-year was million margins income of quarter, in in to XX% with year-over-year. flat flat representing $XXX XX%. XX%. of million a million, $XXX was QX the Operating

revenue of including for up XX% into expense, Cost due Overall year-over-year $X X including the revenue the to of higher fees, year-over-year. placed [indiscernible] QX. X% primarily escrow in total of the grew litigation. points SBC Google X% Cost million expenses, year-over-year revenue, grew represented

a total decreased spend reduction as the as show million down discipline year-over-year our $XX X second to percentage and more XX% we've consecutive Selling to at Selling continue points revenue or spend quarter ROI seen and year-over-year, year-over-year marketing spend to marketing Brands was and marketing overall. reduce Established we where XX%. a of

return million of continue the million rose quarter. well in travel. or XX% point compensation expenses an headcount but to fees expense prior as G&A as of G&A more as reflects cadence year-over-year. a increase in business $XX The year increase higher $X expense normal XX% legal G&A lower and travel up X of revenue, we to from expense comprised

Product Tinder were Hinge. of development headcount, XX% year-over-year and and at costs as revenue increased grew XX% particularly we

leverage our adjusted operating X.X QX. the was Our times was leverage of X.X trailing times net gross end and income, at

$XX equivalents We in buy $XXX ended million date our month approximately on basis. cash share a hand. the of cash, at first per the X.X on investments with to deployed QX of of shares million VWAP and trade quarter short-term back $XXX of a We million

long-term buyback currently stock X.X remaining we shares the deployed continued decline We our to stock million we buyback, after sound authorization. under a our believe investment. repurchase significantly While represents our have

million revenue an basis. QX, higher QX, more Match the growth headwind would $XXX $XX to $XX we million we expect time We in revenue points headwinds call. total be total our This that than anticipated FX for of year-over-year nearly earnings million Group nearly anticipate million. $XXX meaning of at of For is on FX-neutral X last

impacts We payers. single FX-neutral an weak payers macroeconomic help to QX year-over-year, with be We tactics up adjust plan offset to to expect merchandising some digits due conditions softness this. on flat revenue of high ALC as to growth our Tinder's basis relatively mid-single-digit direct

been are ALC features for now Super example, in we've who to more ALC bundles these had emphasize offered lower-priced to adjusting the Likes, which of merchandising smaller, $XX current bundles primarily value high-cost bundles Historically, see but features, our large quite we're successful. In of price-sensitive. our users environment,

low be direct to mid-single FX-neutral but All digits an expected down is basis. on revenue other brands digits up single

helping offset Hyperconnect Brands growth, at We FX. expect Hinge, at as the the well will Pairs continue Established declines due and and BLK Chispa to drive to as

indirect We given expect in XX% revenue seeing to ad pressures about we're down sales year-over-year, be market. the building

operating of representing the adjusted QX, expect $XXX ranges. of million in of about $XXX the million to midpoint We XX% income at margins

in terrific momentum In see as QX, plan. at spend U.S. as we expansion its its well plan increase we international per Hinge, the markets to marketing in where both as

We Match also our at to and expect new slightly campaign to Tinder at launch up spend brand. a brand marketing

Given other lower spend we year-over-year marketing brands, aggregate at QX. selling meaningfully expect in again our lower and spend

While year-over-year revenue in into X% focused XX% we're on XXXX visibility XXXX. to is delivering challenging, growth

an to deliver expect on revenue FX-neutral high be a up we This about to XXXX. X-point in single of Tinder range to digits total is drag similar equates positioned FX growth. as basis to double believe low We digits a

Emerging such Brands. sufficient Brands Chispa growth as declines offset will BLK and the deliver at the Hinge, that the anticipate Established We to

$XXX deliver to at least Hinge expect XXXX. million revenue of in We incremental

a leading year-over-year driven company as the accelerating as product to revenue to have improved momentum we through improved at expect move execution We revenue whole XXXX growth by Tinder.

One, XX% purchases primarily range. line Two, impacts, higher on and initiatives and of well, tier lowering quality X to a the reflects the particularly strength top on execution macroeconomic and Hinge. consumers product of growth the at at X% premium on la the Tinder. And expansion Tinder Tinder. at range will three, the the especially new be end If contribution timing/success variables. from executes key The carte international of

XXXX. the calibrating still On spend in investments that make AOI we're and levels the we side, to want

expect of investment, margins expect Despite across at spend to We AOI its sales maintain the expansion to global and including growth, plus. its Hinge support incremental in we XX% Europe. marketing Hinge user

user drive We that, incremental to XX% spend to marketing growth. and to its can Tinder Tinder at achieve margins support expect AOI continue enhancements in we're with Even the product confident range.

in solid intend to which we're also groups to better believe in than We incubating apps, this We which existing confident earlier the invest certain has demographic plan and invest offerings. serve League, couple can a year growth new we The potential. acquired of

we make areas in To in reduce can to ensure to that growth This least change our investments the the enable us we businesses, year-over-year other to margins operating company assumes policies. at to no flat in Store current of XXXX. expenses plan App deliver

to continues cash operating conscious business these generation that has focus in We've and our being current environment, believe always our flow. profitability achieve consumer cash We the in on and few tags. profitability of delivering sharpened significantly. But been items is parallels flow

Our growth costs our to judiciously the opportunities invest is coming elsewhere. to job wisely for team select year And is manage and the to up in task.

for ask open the With questions. the operator to line I'll that,

Research. [Operator Please question with Instructions] Deepak go Mathivanan Our ahead. first comes Wolfe from

have a in certain provide Or of is some in headwinds little just experiencing la on Is I more relatively a impact it? somewhat markets, regions? the ask the acute given this broad-based? to carte. this weakness Can bit also context macro wanted bit So to to additional of been more you different the various more little that's brands a about

start I we're And strong. seeing ALC purchases strong very by remain power users want they still and off from remain very sticky. saying our subscriptions, to

be is we're main to they as macroeconomic impulse they more seeing buyers occasional impacted that from by and The factors. price-sensitive, are impact more and tend

marketed of have products in these significant bundles, As out, and bundles. purchases historically Gary that ALC our led large we've pointed large to

with affected discretionary moving income, Therefore, price-sensitive difference our younger customers users to we merchandising emphasize most geographies. adjusting are we're bundles The quickly, smaller to a don't less are but see more we're that and across customers. ALC

that throughout as team diagnose on to the environment is to react impressed can and speed but reminder Tinder this react have The I I type are a Tinder and is uncertain, by possible, and nimble our mitigating effects. and some these year. is ever This conditions actively able changing. macroeconomic time the this we am is to be going to iteration. working The consumers which much at take expect of as to be

Jefferies. Our go with Please ahead. next question comes from Heaney James

a momentum a I for you to just QX? expectations What versus it Tinder. couple in like your upside have have lot And sounds QX, drove of growth on of questions strong Tinder. behind the then revenue pretty

deceleration going marketing You're QX. to then you're a in products. why increase slate of of Curious launching new spend, more a expecting

a were and We ahead QX, part our Why sure you in I for how of don't the Sure. pretty the that? we to the on at changes outlook was react conservative think disruption made. go all weren't because quarter, when I take to things look going we all going provided that that Tinder. at exactly

we And little a to the the led think so be outlook. QX bit wanted expectations. conservative that versus to I And in improvement

for challenging, last we're though, We it a has trends QX, seeing about few going the QX macro and weeks. think over pretty deterioration the much significant environment gotten more In in we're even forward. nervous and

you BK the macro than in is and users, especially outlook as trends the a affecting environment, lower on Tinder warranted, is bit perhaps we given caution cautious have have And a are being change their our so weakness just discretionary the as QX la the income carte really in of is that, a which, would the because users, overall little less result side more younger in think purchasing. as for said, thought

for linger period a is to think we that effect And going of time.

actions as those work taking to will way effects think and help time that it that, is going of its it, some offset for take well. I are the We but offset to through of some to

we when less product had would we quarter QX very quarter. The solid product did going us that out a than led than adjustments momentum point next and momentum the year product in we momentum typically And gives that have I into last to certainly the quarters is have other thing in remember, QX. successful work two QX previous or previous the into we

into we have typically new have So progress more don't Tinder see makes QX. like to is and or team it the that building things. But as leading influence we momentum the we'd

the that, the And to to and continues build, team into optimism execute, that improved we'll that momentum XXXX. start see momentum that we gives us as some need Tinder so think they to way execute will

Please from Kelley Stifel. Our ahead. with Mark next question go comes

I two. to wanted ask

The guess Tinder. component business expanded area an mentions first I one that again? what's about advertising time? the of of of the us advertising an way percent is as a letter And for Is over focus right the to think

and has I little not, like sounded And on And I reading much too what maybe optimistic more second, guess, into currencies virtual a relative when you're to the changed? if a then that? goods you BK. letter bit joined, bit Am

Let about me take goods. question first your second virtual

clarify, virtual to in and and the goods to big can coin Tinder do a ecosystem currencies that right. we this build this, And to we I opportunity. demand. But the want thought made the those to always do the purchase goods. economy is goods create So that, have After create sense to and you virtual then

map teams that excited to roll see CPO year. working into and in Tinder experience building I to asked I'm They've road the been launch delay types great out the in these excited has rethink it. because this the of I'm really economies. XXXX. on next

pay about over Tinder, at years, is over been question but modest the my pay. real then our previous last success don't history, in has a users that to seen reality And us the of XX% focus I've anything. advertising users X don't monetizing In your advertising,

advertising monetization culturally. So I've asked embrace the team to

a example, in from think games proven that for video. opportunity the real ideas I've I implement rewarded utilized there's to past,

today. Thanks questions. see time, that get like $XXX revenue, so the about advertising is much in to have would I which over the through think for million I we us revenue double

ahead. Evercore Khajuria from Our comes next ISI. with question Please go Shweta

premium one Hinge's on have tier. I

QX the with how for you globally about year, please You many but rollout? may goal next you that your talk is So entire think how mentioned launch? targeting about payers tier? should we could of that the be And for

this subscription this we'll We'll new and globally drive and it Hinge's after start quarter, strong the conversion good believe out later testing can that begin new year. rolling We RPP.

a more take a outlook comparable begin this Tinder think relatively we'll we for modest more tier. Our XXXX Tinder Gold, has month. than testing for assumed later lot new to know but Platinum We the after it's

about of the $XX FX expect year. especially their of Given headwinds, U.K., offering short and rollout to the of delay do this million the in we goal revenue fall this full Hinge

Hinge subscription the But -- base. opportunities Hinge like we monetization user with with

big to to we'll changes XXXX. any offering with continue As the tiers, optimize throughout

excited really So that. about

Cory next from comes Our question JPMorgan. Carpenter ahead. go with Please

a APAC getting moving and parts of lot and about for talk Japan Hyperconnect. the region expectations your with Just your next year. you Hoping could assumptions

Let the Cory. that, take me question. Thanks for

right. You're

outlook APAC say. given is moving you Our bit the parts, to as year a next businesses as all it relates challenging just

And next is we've we're what so trends really Japan, little seeing can that really I'm seeing no not market in bit better than to year. hopeful the in in change see yet. we're assumed but that recovery, Japanese and some that do a we material the start

the it's that basically think be But which And a so on year-over-year. basis, our Pairs means next -- improvement next year. modest probably in stay probably going FX we that to dollar achieve same largely down year, revenue we've U.S. a assumed conditions the on business some can

local down on in currency up but basis. a dollars modestly So

And margin. that neighborhood achieve of can I business in probably XX% think the something

the change I'm the will business, hopeful changed. the into trajectory And has profitable but leading that really for future. So reasonably a growth better

well. parts feel see about level will we Azar moving business showed the And very encouraging The to We Azar I reasonable continue good of as think and is of some business. couple that. a letter in about. the from as talked has we we've growth Hyperconnect

little to dramatically more in Hakuna, challenged. that Hyperconnect improvement we're next And compared not is but sorry, assuming of a this so. -- year year at bit business Hyperconnect

in so I And on FX you think together, year -- think down show we be modest level all revenue local that will again, basis. overall But I affected, put when U.S. a dollar that will when of some growth currency. you Hyperconnect next

for. we're planning what that's So

Hyperconnect there So Pairs and both the dollar some businesses. headwinds at are on on perspective, from the business a Japanese

adjusted Azar disciplined to probably that marketing Sam be think and to that spend do Hakuna working that XX% margins. there got improving And on. keep operating and And together our CEO, going focused income try can our business. to We're existing about margin. I headcount a on driving something Yagan, is drive to up margins new with in is very team there we

Our Justin from ahead. KeyBanc. with next Patterson question go comes Please

a multi-parter marketing Tinder you It influencing BK, Try teams on Great. see Zynga. beat Tinder at and ahead? of sounds to about between your strategy how over this similar product pretty you the bold growth talk marketing. integration could tighter

puts best-in-class a And in then Gary, are you on Could the gave is temporary for bit just you of talk on XX%. kind to And permanent whether little margin at this Tinder being about margins? the the marketing more appreciate best-in-class maintain kind details still a spend? what takes or around assumptions those of and shift

answer this to the question try I'll marketing. on We my questions love own. around

much Tinder don't marketing. XX% They've changing. has that spent about see spent traditionally, always less on and of revenue, So not than we

reliant not is to marketing business. grow Tinder Thankfully, the on

too especially we're is And younger are going this category, establish category haven't stronger market opportunity has long. to our the who narrative. that a to new a Tinder, increase we brand in too XX-year-old users believe for quiet establish the XXXX, leader, In which taken I the narrative. spend brand. is However, marketing been to to with

it's brand a features answer to have new CMO, But next creative With we of to planned be there below market great our revenue. manner in that newer for of message see to still XX% product out question, going year. get some and our your opportunities we

to be at once spend, always These Thanks two been. even margin for the as Tinder. in range the user growth accelerate together in XX% question. again, have And expect incremental -- with should and they even Tinder we XXXX marketing help

ahead. comes Please Truist. question with next Our Squali from go Youssef

sharing visibility still at thanks challenging but We for this understand initial the point, XXXX. how for Guys, outlook appreciate it. is

BK, So questions. maybe the just a he liked follow-up about since to question the marketing marketing last

spend seems this like down. XXXX. all see in Hinge be Match the It marketing understand increase Tinder, will is if while brands correctly, would So and and a question about other I it

macro the permanent to do XXXX? I guess Or a more forward? a you permanent strategy your in this this shift the is, going temporary question is weather pivot, as strategy environment in see

And one. maybe just a quick

talked guys base million in XXXX What an Hinge least do that about expect in to additional to just contribute at You a work off off XXXX. have contribute of? how $XXX you should to

So let me question take first. the Hinge

think behind I FX, about is the mostly $XX -- BK for mentioned big because particular, Hinge feeling in business million FX. got that the in U.K. and goal it's probably of a year, It's pound. of the especially the on impact

And million. we $XXX targeted had so

I million of think fall we'll short probably about $XX that.

it, so or next said revenue call the of then you add at $XXX let's for So And million deliver $XXX we million that together. incremental year, think least that can can year. we so we

Obviously, the success of and the tier. expansion, more new the take international pricing the on depends on but the success really the rate $XXX around new million importantly, tier, premium

And thing know. we that's the don't really that so

that to in think with month. more weeks to we But reasonable middle or the what the the of as tier. going few happen is on testing end planning a we're We've we'll by a start made estimates some know year lot of this certainly

And end this we'll a have year, better sense. the much so by of

for Hinge again February, some outlook we'll we to overall as in be year. next on when that updates the so get on able And as tier give revenue growth back well together you

So your question. of that was piece one

outlook we that from there next a perspective. this it, raised also on as because challenging we is macro necessity, on provide pieces, since which both did our are particularly want is often do an to year But XXXX wanted I many call. just moving to by this just for the year, you in so and outlook business comment

through macro going really things from know next the is what all we going environment that and and to so happen know well. what's rates recession And to the year, be don't you

guess So our that. we've best tried to at make

that But out months here have making looks like. XXXX clearly, to play better guess our a sitting But sense see the to in today, get we're of X% what to growth overall XX% how things are best we'll coming confident year, the for next to on economic side. well as what the for on Tinder in as conditions be at company revenue going

everyone just next mention of approached year I at some an kind point, for wanted we've So this various how crosswinds. outlook understands to that the given of all so providing

And question marketing then spend. the on about the last

assume brand in marketing You we the narrative are see well spend at for Hinge, next better we past at than the to as the explained make sure to as wanting going have extensively. reason that increases that to Tinder right talked we we're about establish which BK year about

And really English-speaking in strong as keep well and its growth in that's U.K., One, the build things. around supporting to two particular, continue to world U.S., momentum. a that. well, and expansion according there's we our about to really impressive feel investing where of keep Hinge. lot want international in as markets, the going Things are more than user to at great plan, opportunity We

did an be you increase are want would that's to we those dollars on said thought think next you to be clearly the spend don't at marketing I our side. in going correct, the where marketing I brand year. meaningful places are So investing case. Match there

year, to discrete QX but marketing that be a brand that's have we're new we spend launching. this an going There in is at of in campaign the Match because brand increase our

of not So there QX a year-over-year Match, in this year. year planning be will at but increase for next we're that

fact, In we're that brand. XXXX. using Match, Brands, the over spend all the offset And the at brand the in we're we be down to including Established at at marketing making Tinder Hinge expect and XXXX to investments

a strategy about weathering It's spend it's goals. macroeconomic is that environment, spend and targeted also increases would permanent we're about really also marketing for strategic our plan say to to not our and thinking strategy. our approach how the current I around achieve that not a

grow that's to Hinge at are goals strategic our why So we're business and investing. the internationally,

at that with we're the make And And increased establish market. more to is next from Tinder some marketing take of planning back narrative the we'll brand do and Our strategic year. brand narrative and to the go spend in noise some goals of there. then sort

make sense. in sense nimble we where pull will to back we doesn't continue and think it marketing spend, we where We're it and makes spend think

spend think to there. of couple we to, recently and opportunity And which growth into we side. be other the think will League, for invest the that opportunities The acquired. One would League, excited A would we we plan point We're next The we where of areas significant year. up I marketing business about on there's

second then the we satisfy better that We where that we're incubating. really demographics apps offerings. And some think about some markets are apps thinking there than And build some the is are those can underserved. demographics current new

be of we a extent the priority. user a once will will growth that the be component user strategy app. do in incubate new To we that, marketing and XXXX Driving growth

So up extent incubate we which our to to apps, the is expect XXXX. we new in for plan some spend

I philosophically, just maintaining are do, or we we strict add but especially that as spend, on threshold. always tougher a then believe marketing exceeding our environment. brands our that we're ROI discipline our And of all meeting marketing And would in spend ROI is

a carefully, we terms that have does challenging So we and in not if hopeful relief very competitive seen especially is expensive has of soften, environment, in economy see environment. continue that the what yet. we're marketing some very, to to that will been apply lens going a We're but an

well. economy. to logical But as would to think do in that, capitalize it's all look if see headwinds it's the that the we I we on coming, think given

So hopefully, of I that answers your you the thank your parts and different questions. questions, for

Very thorough. excellent. Yes,

go comes ahead., question Blackledge John next with Cowen. Our from Please

And of you're XXXX? and can launches kind in then more some efforts Hinge's market quarter fourth seeing? expansion what of in the you you on international provide talk upcoming Could color about kind

are beyond that our We now. well. working lot tactics have marketing and things. We've localization a exciting English-speaking are has two at The appealed of product confirmed Hinge markets, and happening things right

singles that are And the great fit great on it's in and in clear also. dates. that is product found really other resonates on English now markets -- Hinge a for English-speaking now laser-focused people markets markets. The has innovative in team getting and international

So that surprise it shouldn't so well. growing be huge a it's

Sweden been Spain in next to we versions in go, great well. and rolling and a year. countries The to those growth localized new launch have expect in we'll years. should marketing France, XXXX, watch. as over We And keep lot out Hinge for roll has countries drive We'll in continue we're Hinge the really growing in start this out and next and across to to markets few still and Italy Germany more Europe quarter

comes Lauren Our Stanley. ahead. go with Please next question Schenk from Morgan

early letter some in BK, Tinder promise you're the Great. from seeing mentioned results. you

is you announcing and timeline new elaborate a examples And the there. terms we hoping could in share then CEO? of that Just few maybe should be about there thinking Tinder a

that, that And follow-up, the of payers. Gary, quick continues the some spending And Does comments rest on a is I one that if for softness la quarter? seeing quarter just weeks. carte can, guide deterioration and of the then, on few level your broad-based last fourth and that I assume about had over just softness

on part, I'll the you end questions. the on the the question. second back jump first handle in for thanks So and Gary, can

team is working faster. and we're shipping So the products out really well together,

We gave and weekly QX. optimization in subscriptions, them a goal boost And intent of accomplished relationship to they all that. launch

how in with happy more earnings for product share the have plans in we're next I'm crystallizing our XXXX. process call. and that's we'll going, our to specifics of Now

But name I at to CEO do a Tinder. expect

place, I team with that a hit work have each them. sure We're team make expertise, someone around who is long-term product to can in further really to for running strong We galvanize leadership want the going and looking ground of vision. the deep new with consumer and well really a CEO the

to for us someone at will be that find time. for important long Tinder a It's

time happy to I'm want the doing amount finding we stay leader. the as the meantime, So spend diligence interim the to right and In right of CEO.

do the to want second part? Gary, handle you

the Yes. Obviously, we're part QX. in quarter way through

visibility visibility XXXX. It's broad-based. a -- into Tinder. on It's it's primarily carte so into easier weeks. the than in we have at QX last a seen a la And not And deterioration few lot is

ALC existing side in is to is we're the -- as is the the There other business Tinder. we're weakness at hard our it's tell that Plenty on some it macro well. look, portfolio. particularly But And seeing the across how pockets like much exactly Fish weakness of on thing focused

I range much some Obviously, provided in we're made what or are reasonable to XXXX. that confidence not think deteriorate we've QX based for that don't give our for I seeing know QX. assumptions going things in me we on how

XXXX challenging. makes And guiding that's for more so what

around some into see trends least some consumer to But right factored our that we whole as weakness, at as well. do a for indicate outlook. in it guesses we and best And make that the now, XXXX have QX we've tried

Steiger Our Alexandra ahead. go with from comes question Please Sachs. next Goldman

QX to follow and on up wanted I 'XX margins.

So income about given increased of think top from the cadence given the few growth quarters, the adjusted cost and these timing we for next line guidance marketing investments should some the targeted efforts, reduction margins slower your operating here at of Tinder and initiatives? around versus over how comments

I dollars more reductions in offsetting So with we're said Brands. those we where you're opportunities, Hinge, business growth The before, see League, the And the Established et in it we're and cetera. Tinder, investing right, marketing

net seen we of roughly next marketing result in is spend as expect XXXX. that consistent revenue what year a of we've to The be percentage that with

overall, but for have flat target. goal our hopefully, next the And year that's to do our so that, for year, margins better is than

a may you But of in some the we have see spend in marketing cadence versus If on effect on depending don't margins that we small might spend. bigger QX, if on quarter-to-quarter campaign that QX. have fluctuations

you going flat improvements goal in campaign from least hit offset cadence to we're see on spend, at with bit year-over-year margin of and to quarter little perspective. margins. the elsewhere going on a plus be depending spend So a or incremental what's exist headwinds marketing minus that Outside marketing might margins any of each that

talked a And about us, high-margin then that for and you're we already. right, Tinder asset is very

our growth and goal meaningful contribute ultimately accelerate And really so margin to really or its us. really factor improvement Tinder hitting in long-term that is growth margins dependent and the on

it the it's to #X get which closer So and margin for or to back company accelerate that us job Tinder help is get to will really historically at the been is to long-term target. where that, least overall growth our closer

there's thing the at think for which the the moment. point at and And are Digital is as India, all, changes doesn't jurisdiction other App in for assume around margins, is out prudent from result in That relief Store into markets to that. that went well, the example. we the any effect margins The we Markets like only actions mentioned outlook letter, as Stores policies being yesterday U.K, expecting our we in said, this App of assume a I'd and Act other thing the to

it's believe the likely we see App that in so from that Stores we're to latest. in And XXXX relief going XXXX, at if not

as any think do that. upside I contemplate to margins But doesn't so right there And outlook that through. our of now, our plays is

question go Please next Bank. Deutsche comes from with ahead. Black Our Benjamin

Great.

on follow-up a Just expenses.

in of about what you cost should the see to controls broader sort of sort When spoke accelerating the should think I initiatives could sort So exactly unpack impact controls cost letter, of you we expect look like? year. next those And those P&L?

Sure.

one that web at of lot obviously control as that, like as you costs to well. look us difficult a take our near P&L, over IFBs, come me our in like Let out of things which as are AWS, we're well for things hosting, which When nowhere affect.

you and those some control environment, control, on look as we can control headcount what current are can what that costs and the things as really items to want marketing and So fronts. at when other can expense well in operating do we we we can control control

about to of the from be talked in we're it offsetting question that certain with a response where And increasing to just spend, businesses. in we're marketing perspective. margin neutral our reductions I elsewhere Alexandra's

that's one piece it. of So

very middle the we growth And hires In add terms only if in we in hiring additional that Really in headcount, would businesses critical few, hires we've are of our of XXXX. headcount this only the year. the since actually any, XXXX, expect additional dramatically slowed

for And critical make in the apply, will I we're think XXXX, really But be that other meaning than we'll and that, businesses to judicious. really hires, philosophy same them. growing going

a for expecting spot company. I'm increases the across in But which business. Hinge, expecting So hiring not specifically, headcount fast-growing I'm meaningful is a us, bright

the extent lead need to that offset incremental we would negative that in to of does with impact other the reductions to on parts margin headcount And business. side, the

the you have on so the do that about without corporate have nice think into can just can overhead, impacting be, last crept years of to or without pare those and few we costs things reduce we where when we that business is are that back the general And performance over could business. one the think that

we're And there identified those. taking action those. some are some of on of those And we've and

see flow we the P&L, quarter, you'll then fourth make in if not the certainly turn So XXXX. of the impact into through as the that

makes real real so. at doing to estate adjust estate to our obviously, portfolio, a things they from post-COVID, sense footprint, in our pre-COVID. Also, perspective we're looking are as real same not it were extent estate the And the

for of in Tinder corporate and growth that some we that in overhead, reductions. real costs marketing and corporate well hopefully as So targeting so new the initiatives, reinvest are estate in Hinge use we're can generally to And as at forth. places businesses,

part And of our so that's plan.

headwinds the to look, to responsible And these just I would out do. a predict. very There's there think say, we are difficult are lot that macro things of

And so will this are a the on bad as is not we improve anticipating, front. environment if as then standpoint. we year would rather next the profitability proactive And business be from

we're businesses. also of on also mindful factor we're to the the challenges have as that's growth disciplined the that businesses we some need our that is our we more in of challenged, growth And a approach taking. costs So and certain to that trajectory in of be of result

these expense we're the that new by apps League, Hinge, we We're I less conclude saying kind incubate. and around So businesses philosophically we making Chispa, trying Established to some of businesses guiding Brands. that this. in to investments we're The BLK, just think That targeted in is principles of can might the have Tinder, confidence what do, in where want we have growth, grow: we reductions making primarily

is approaching approach. of broad-based other reductions cost in reducing that a investment growing So on how costs side. It we're the targeted one-size-fits-all parts about. and and that's the it's not aren't It's a we're in corporate some the brands thinking not And businesses complete approach. flip that

thing to making add forward to just to last investments in, next we're that a any any we're make year, up to Especially before apply in going a wrap the to lens then is investments. going I are given we wanted And new call going the bar. disciplined face very high very environment businesses we the need

through our now do of going we're and carefully, process that. very everything reviewing to all we're so And

when seeing side And see have and from as in well February macro then. a lot And on we together to to get forward more what again next growth as the look we perspective so call. I both side, the you on investment margin we'll revenue our communicate cost as a all and on the environment

any comments BK, you? from last

Thanks look Thanks, We today. to during earnings with our forward progress of everyone, joining call. much. we've short lot time. amount call the made great a We of a so in for sharing next feel more like you

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