Match (MTCH) 1 Feb 232022 Q4 Earnings call transcript

Good day, and welcome to Match Group Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

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

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

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

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

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

thank Thanks, today's for joining Tanny. and call. Good morning, you everyone,

to that short As our taken that growth challenging key our the set we financial look our on profitability. while and recruiting of is and missing goals. up and back is talent clear year business including performance not continues the and accountability collaboration maximize XXXX an exhibit fell our But increased long-term it's for expectations. this was steps, with for decisive us strong organization fundamentals and okay And results, have QX and to we discipline, restructuring

our layers during day. while embraces mission all that shared required cultural create is across opportunities As I've and serving organization identify I've shift One the points. and value, connections to and that Group. job, listening as meaningful to drive obvious and on pain portfolio months tour the our shareholder every real Match from went to the this organization very first as thing welcomes change was is previously that my on few I across intense leaders across users an spoken employees well to

improved reach the and The changes and Tinder have are scale virality, Tinder's the has. in has evident regain we in at it product and XXXX footing allowed roadmap No the Tinder category execution. other the The quickly momentum. prioritize results brand to made that

it judiciously expect. shoring get I'm few take going that the confident there talent the us and in might and investing team Tinder's we're to a all back and by performance While financial momentum accelerate that we quarters, the to up the brand

Interim Tinder me. remain encouraged progress leaders that by execution. continue directly I has culturally terms of key report and CEO to and of senior I'm Tinder the made both to in the

in the year, I'm half Tinder a fact, In compared This it of number features new the and very the XXXX. story. brand us campaign for half to later the begin of in which launches Tinder's allow in establishing increase excited significant product saw of marketing first QX. second the delivered shifting also to will

streamlined historically I After we it of Tinder, I'm in siloed you while had with we at adding structure more our organization. last way. at accountability, the every that time leaders, operated healthy company's That's announced to organization, From the Match had evident Group rest revamped the dose of week that very organization. a across big increase a create looked to competition transparency believer a friendly we that leadership the increasing culture. conversation became our why the a brand by same

growth. the renewed and focus restructured around a With innovation brings the extensive management we for with that leaders future, talent focus team setting right on new knowledge a supplemented the up team on with and experience

HingeX how the most February. top app many I Hinge give users offering dating two by control across that now powerful a a subscription speaking we premium to their impressed and brand. is launch the dating over founder-led by and I'm the mentality there upside the the remains X continue create is our generations, for mission-focused still Justin one and to international successful users English across monetization of differentiated, but have of opportunities in efforts more tiers in new Nordic of December. end ability with that now focus resonates Asia tier date. DACH with countries a international early the invest its been as by its they monetization in vision expansion will its lot Hinge to also I've It continued our Hinge's within portfolio, strong subscription McLeod's we all guided believe downloaded so excited expansion singles becoming efforts, in expand region. and very and in Hinge apps standout about brand. highly

how needed knows to ground market, in engage a leader teams. the product the inspire on and who We focused

of So Asia from will to Hinge Hyperconnect to and I Match created growth Pairs profitability, and with work enhance CEO as for Group strategies recapture and of as Tinder Green role to promoted Malgosia well drive newly moving as directly be Plenty Malgosia the the Fish a region. to go-to-market Asia. across

OkCupid Fish, Emerging newly like Finally, emerging first taking as CEO League be Emerging Meetic, brands Brands. together role Match, be which The of Evergreen created and Chispa, Hesam and Evergreen managed for & the of Brands a BLK, on time. Plenty will will our of Hosseini consist &

where shared and attractive will our Formerly, growth unmatched to Hesam emerging team. with direction brings will work. an allow the Match institutional margins global and combined our significant us see It Affinity level also leverage reduce our brands knowledge Combining operations to to untapped this streamline we evergreen brands, under brands, across potential. drive to enable duplicative CEO of of experience a us

by each of He new user going other incubate, excited fit And highly I experiences a for culture team products, his Will with for impact to Lastly, Wu humility. of some engaging and for dedication known been media them most here at and work have transformative we will and Match entirely upon be our our great know expertise, is a who and a has and build social he ethic grow time, on continuing launch we're I his welcome all Millennials to will creativity, long welcome has our to Group's Gen users. the to the for new able as as today. the to brands know directly had experiences work build Z. and innovation Will CTO, influential Match history passion Group.

And not I instrumental take if and clarity been amid finally, very be my through helped Gary. thank backdrop. a only in operating didn't would He with I moment has remiss a onboarding, strength all of this, lead to but to has even challenging

demonstration As we shared have drive President appoint vision trust the pleased such, Match our put CFO ability and I as to clear I'm in to the him a Group, forward. value and of his in in Gary

to a chapter next year, begin we take and in Group's history. this Match new As I'm on ready energized

efforts future the we and a calls. I and look navigating challenges, sharing macroeconomic on strong in upon. to are We execute current more to team have clear our vision forward

With that, I'll call to the over hand Gary.

I'm feel Wu I hiring about terrific. will the build be to role forward of with the think much BK. Thanks, continuing to and my the see great and to momentum. working him Will its org looking made other we've very company changes and

me get into let numbers. the Now

operating As our revenue the we the while at was our adjusted last call. we total expectations BK earnings not that in and to, said, our set forth standards line, hold exceeded QX in income ourselves XXXX

down once million, X% again. revenue was $XXX year-over-year. was notable Total a FX headwind

our we would X% weakness by but million, our revenue we had FX Europe. expected outlook on The we earnings more on been offset FX-neutral that provided forecasted November have an less up when primarily than year-over-year was headwind basis. $XXX slightly call, Our than total was in business

in OkCupid. declines Our in but but Hinge Tinder, but direct revenue an the at up was Hinge, weakness by APAC an Chispa which and Match, declined revenue in Other, FX-neutral year-over-year Direct X% Brands, down It was X% X% Tinder at by on growth year-over-year with X% was year-over-year with BLK grew Direct Plenty include basis and driven Fish at Meetic. Europe X% revenue on X% declined and FX-neutral year-over-year. up driven basis the Tinder. of and Americas Evergreen

payers down in Europe were while were XX.X aggregate. Brands down a X% the up Total and in in and up X% were Tinder in Other payers were APAC All Payers decrease Other. X% of X% X% year-over-year. down million, year-over-year, Americas, X% globally year-over-year

QX British RPP the an X% year-over-year from Hinge. QX RPP X% and of RPP the and in yen Europe, the paid Other compared in X% and offset to $XX. XX% at Tinder the up by the RPP dollar relative Tinder Europe subscriptions was strength average were up year-over-year basis, Americas for pound. lira. up year-over-year Turkish APAC and was driven RPP euro in primarily contributions the at Other. Hinge up On APAC in was and was in strength FX-neutral U.S. of to up XX% was by company-wide, year-over-year the and the down down dollar and to where X% higher X% prices the due

basis. over on million. quarter, highlights the in an under year-over-year, expectations our of on Tinder added X% Tinder which basis. with line million, X% decline direct impact quarter, was RPP in the XX.X year-over-year saw FX-neutral $XXX the up up RPP flat performed payers XXX,XXX of overall again Tinder to X% year-over-year just in delivering a revenue FX. just Tinder an FX-neutral

growth down year-over-year Chispa Hinge, to QX by payer BLK with growth. X% in an XX% All Other and RPP X% drive Brands' direct year-over-year. up revenue by X% continue decline, was offset driven Hinge nearly partially

on in due Emerging & saw and a COVID currency local direct direct Japanese in Hyperconnect have to XX% despite year-over-year, basis, the X% market saw we the of Asian direct terms year-over-year declined revenue declined and Brands Pairs there. see We Evergreen yet in revenue part Our rebound large a our stability brands situation in revenue, but in improvement to FX.

dollar the strong other revenue. in the in XXXX. Indirect indirect $XX down was but revenue million XXXX to XX% quarters terms for similar year-over-year, was of quarter, particularly QX

higher by well businesses. QX, primarily the of performance was on on income XX%. a to long-range of discount Hyperconnect interest margin income Operating rate and our stem use $XXX The related million Meetic charges Operating forecasts to a overall. as due decrease million in intangibles and rates financial year-over-year in declining Hyperconnect's was Meetic the as XX% market for charges higher impacted $XXX impairment volatility environment at higher from

not business outlook Hyperconnect quarter. during the Our did change meaningfully

margin $XXX year-over-year, margin a representing Adjusted AOI reflected reduced as strength million, operating spend income marketing rationalized we nimbleness bonus overhead was QX our X% and and costs, XX%. costs. some of on and down

the including essentially expenses, of expense, impairment flat of $XXX charges, million overall impact the QX. SBC Excluding year-over-year in were

to we've point X XX%. a year-over-year the spend marketing fees consecutive continue decreased up and revenue we was marketing total percentage million a year-over-year to Selling spend X% exercise marketing total ROI where to as of down represented overall. reduction and hosting of year-over-year Selling lower-growth year-over-year X% driven third spend seen X at grew revenue of revenue, and or point costs. Store our as Cost reduce $XX quarter and discipline App brands by XX% year-over-year, and

fees legal were lower flat was Product revenue higher Hinge. of XX% but steady expense Tinder G&A year-over-year reflecting primarily year-over-year at headcount and at XX% grew engineering increased and costs compensation XX% of expense. revenue, and development reflecting

was leverage of and of operating with ended and end gross on X.Xx X.Xx $XXX was equivalents cash the income, leverage net at the Our trailing hand. investments million QX. short-term quarter adjusted We cash,

which in currently decide under other in drove shares balance repurchase reopens. quarter we the have the now are prices quarter. as remaining balance We by stock authorization. generally With slightly. shares and will our throughout weakness build reconsider down did the We buyback any high we we million And and our to repurchases volatility strong, many the allow once cash X.X our ours window markets cash QX, the not to in equity concerned

company, look line we delivering at hit we stands growth, year growth targets, and our respectively. top our out AOI a X% public X% When not as as history did XXXX a

due Some including of miss FX. macro weakness particularly and the to factors, consumer was

first the in year But FX-neutral On execution our XXXX. expected XX% and be, as year. Tinder, where product we decelerated not the an to of overall in on. business especially the in top growth And basis, our particular, was was line went half

and of decision year the revenue. Hinge direct delay slightly direct primarily had our For rollout revenue delivered & Asia $XXX $X.X XXXX, our to revenue, was in billion. delivered $XXX Evergreen HingeX. million million in the revenue, Tinder to million direct $XXX brands approximately our below million in Emerging direct due $XXX full expectation

some corrective confident standards. on critical of XXXX middle require made to but deliver momentum our will in changes with through we're we results very the begun patience and delivering results. build, Fortunately, increasingly It's see consistent the course year, which the we're to still have early, it

we 'XX, for Group million, Match total QX year-over-year. roughly $XXX of $XXX to million For flat expect revenue

slightly increase to revenue direct expect we Tinder, For year-over-year.

We European core and direct the of QX performance expect continued XX% the by continued strong year-over-year tiers pricing over deliver Hinge expansion. driven English-speaking in two to new growth revenue introduction markets, its of

going no is la with conversion cannibalization The impact of Hinge new and carte revenue. our expectations, take well testing notable of rate the tiers early à we with higher than consistent expected

the February. globally tiers out We end by be to rolled expect the of

our to in to driven expect revenue under our large year-over-year Evergreen and direct decline XX% Brands' We aggregate, just XX% FX. down part & by be Emerging under in Asian brands

We indirect ad due concerns. slashed given to year-over-year, to XX% are QX close expect being revenue be budgets down to broadly macroeconomic

We litigation adjusted of margin $XXX of last escrow, about ranges. $X didn't income be in and we the to midpoint $XXX of IAP million expect operating cost QX, the to was a into payment at representing which million include fees will also QX. now million the Google an XX% a headwind continue incur

in up portfolio. year-over-year spend to marketing the Tinder expect be reductions We with at elsewhere Hinge and

savings in QX cost to initiatives. to incur to expect personnel $X and severance $X costs We million similar reductions related our of and million

impacting our that improved to at coupled gives us in in execution our revenue brand, XX% a thus positioned to Macroeconomic Tinder year-over-year Tinder of our with X% Group expectations can early deliver We XXXX. increasing similar growth. confidence believe consistent is product That, range growth far are factors deliver business, with Match XXXX.

lead momentum nearly confident Hinge's XXXX, XXXX. in of delivering $XXX million remain million We more than will approximately $XXX it revenue direct that also to in

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

accelerates. we cost top the of expect year take margins AOI, growth half back and as of initiatives year-over-year terms In Tinder improving benefits in of line hold the our savings the

on savings focused and initiatives rightsizing cost are and including expenses reducing professional office costs, headcount fees. overhead Our

our ongoing. aggregate. We've the is reduce in X% workforce to reduced already In other expect by We global this approximately in roles U.S. process countries,

of to and in cost costs severance incur our XXXX. million We related savings expect similar $X to initiatives

keep spend to marketing to lower-growth higher-growth reallocating overall from flat. in to spend businesses close XXXX also We're ones

Digital App policies, is Our markets with India. legal continued such that effect of that in we reflects in now stores aspects though stores financial restrictions Markets outlook and current to are no believe facing globally other the the setbacks are comply Store to change in moving The as Europe. Act also

challenging expect the is We of App the in and changes ecosystem, continue to the shape timing to Store but predict. changes

can cash compensation We taxpayer of affects flow pay precise take. our expect currently expense deductions Federal into to be a in The XXXX. convert in low We AOI will amount on stock cash XXXX. in expect depends the U.S. part our we which percent price, we free to XXs

desire We by on with XXXX $XXX of $XXX SBC expect as expense to million as compensation. hiring previous million, the remain competitive year-over-year our driven well to increase

dividends. and changes We've implementing organizational the last critical These made changes Tinder savings just of revamping initiatives to a mid lot year, including arrived talent. streamlining structure, are team, critical hiring beginning cost new our pay since BK

in and term. time back and the We product stronger but for in expect momentum well it momentum longer a improved to to little of the the profitability year much as discipline half take as growth us first of position confident our XXXX that build financial are half

a forward shareholders. cash combination and for our to of strong growth, delivering We flow profitability look generation

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

Citi. comes [Operator Arounian Instructions] Ygal from The first today question with

I good maybe little roadmap, want we ask some on execute to in and you of there a are you spent a to that examples year? maybe kind the mentioned starting of this left on roadmap. And in amount letter dig much get and you're is highlight that Tinder, And product through where talking bit could practical to you how that. of and about about just the investor deeper Tinder time

core about expanding And Tinder. components monetization question the talked broadening then on deeper then and experience of second engagement, optimization. of three you the And

drive in going X/X to XXXX. is optimization growth that revenue Tinder's of highlighted You

expand that you a to other expect time? bit, happening? little revenue that's contribute how And to can components we can why on Just the two over growth

roadmap. can I pretty been wasn't that Ygal. the with I last of the one. Thanks, It's May Tinder joined clear state that I take happy when

was to made really take roadmap we team. moved six our the over next changes we aligned roadmap about where a So And product business. and lock to we thinking we It on. everyone was and to important that quickly, the months hard want the pushed

focused for and monetization. platform daters We areas: our on key experience two on for our areas future

the roadmap, the that we had foundation we are actually problems and product prioritize out in found laying we As some fix. to

on the on So focusing team that. rallied quickly

build a momentum the of been health of with always the like. these growth. has the up momentum less But first us year into on monetization. to half experience, emphasis would Our we as the than half we for enable it for given our of head lead that we ecosystem, year, improvements second XXXX in sets will accelerated better foundational user further Unfortunately, what

we But challenging The the and revenue in facing. environment offset that environment. carte quickly that pressure, team the under solutions a weakness. proud given included way À macro really shows the of together letter really coming to significant was I'm the la chart this actually with was Tinder that moved

around fact, Number In changed collectively Boost, Compound Primetime three, And in one, offset the they out no number good called rolled of merchandising this a optimization amount it ALC, they approach was helped in two, ALC three weakness. the Number ways. new environment. working Boost. which rolled longer they macro which a did out they

how worked six has wouldn't This together been months results. the impressed team team quickly to produce possible have been ago. I've with with the

The other clear big roadmap XXXX. is a that focused product on is sure I've team for been and detailed making priority the

team of holding that roadmap. For myself alongside I'm the the the product in delivery and we've first Tinder delivery accountable published that time letter dates. ever, for

a when like we and these By all test to nature, iterate have we this, have its roadmap features.

successful is the more this confident year. metrics. time team to out, to visible than and optimized it This will them Some will into of in general, some and we a the execute and visible expect. it. translate once over half we I'm some Tinder payer roll revenue be will strong financial In take will will be to lead it's wins that and in roadmap that results on going back be metrics that time,

for to and authentic content through initiative to self-expression. cater series around Gen a big Tinder Z A initiatives of is

the We to that have some plan be more on. that we're really We'll creative and interesting talking goes concepting Tinder. we as integrate about into and features currently year

And really is we very for place [rest]. to really that recommendations. the Another to think leveraging We're it technology that be machine can is beneficial applied when and learning enhance will Tinder learning using already I game machine moderation. change think by improving, and safety

We have has and inside it's this group of build machine in in only leverage we on XXXX. do that the can resources at that also Not think a team significant working utilize talent area. this technology we move faster Tinder, we Hyperconnect can but out, learning we're to these we resources have to something that

I pricing a about and believe asked You pricing. of lot optimization, around fruit optimizing there's low-hanging

and been talent recently haven't in focused a we from area our time, We against Match long for initiatives. these put Group this best

significant lot we We targets. have that risk improvements area. financial the a This by and chances confidence reduces improves of actually delivering our tackling of can this our revenue achieve

feel X/X product really is about Tinder's of by that the fact good product I optimizations. So just XXXX delivered revenue and pricing growth

in going are very Tinder, the we're of subscription this, stages could a the possibilities which we The on at for say opportunity. power monetization League, a the high-price tier early has pool on Lastly, actually planet. lot of we demand early users intriguing. Tinder. weekly when largest think to This but the $X,XXX appetite acquired an at area that be too at to is testing an broadening Tinder. launch unlock see the ultra-premium plan we We're is super for we And if tier there a subscription. year, Last and which meaningfully a to daters It's of

with from The Lauren Stanley. Morgan next question comes Schenk

Great.

that start You the is the solid year mentioned off letter performance-wise. to in a

and Just seeing regions? some you comments specific could And wondering improvement if or or expand what brands broad-based is specifically? those on you're the to

of last up you confidence growth trends the year? the or the question, give what reaccelerating end are to some just internally of KPIs that by maybe mid-teens And in then the that following seeing you're Tinder on revenue

particularly from a factors, environment. were Tinder of So lot Thanks, brand consumers we earnings last driven the you call, acute when we on by that that our that don't met seeing pressure Lauren. ALC we where really our And try especially that have feeling younger pressure was macro which was we I at to significant on younger economic revenue, Why consumers. one? are take told our

we things it That of was a as impacted really on happened. met time, XXXX our since QX and a overhang our also performance, performance potential well. have last But couple

The the the letter, in they out see of but mentioned, which Tinder it, one, in ALC. lot of lot from And chart portion. in you BK not can all that's we trends to succeed in a are of a initiatives was first reverse did reversing the a put significant that the seeing ALC, decline

in And that is the trends. months other last really the over this and ALC few we've important very is our stability thing, seen

we so last And degradation, have which was a not time. seen spoke we when risk further

business-wide. that trends. to on also Tinder we subscription That's want haven't any our and I'd add seen impact revenue

think resilient I impacted we've remain But where some the on. pressure. by subscription it's of economic macro to our going things trends any been extremely ALC

of December Valentine's And I has also through end know, peak as starts Day. you say bit a and at the a that, runs that of season would dating

peak which good for of the the what's harbinger the a season, we year. watch and rest tends to be in so And of QX coming

this on is season, that which as led we that stability consumer what really have of not pressure in incremental to that did And pop well, we've those see year typical worsening we trends in tells macro the the demand the see in the put trends us demand. trends, seen consumer the peak kind ALC. in They've not

our XXXX than had in time. particularly gives more been outlook and that's last us So encouraging we confidence

pressure are think year-over-year in at So down particular, trends in ALC those ALC fact, see and we while summarize, see don't we just Tinder, we on worsening. to revenue

in with progresses, improved as the see we the And subscription with and well. outlook we'll us the being start think trends that year that to for and stable momentum resilient, ALC so as revenue confidence fact that XXXX gives

we you just our that seeing across tell trends good season we're would phenomenon, Tinder tell the not of peak but would weaker season trends that was certainly I that stability Americas. a bit we in a pretty little the I weaker also a It's the are but Europe general, business than in we're bit businesses. fourth the think and is you think that in strong. seeing Americas is peak And all of little quarter, Europe

In Tinder terms as year we've we're on, team talked the the a problem has goes a that product now, made with few of we're last the clear in was reacceleration largely as the very And really strides times improving about over pleased product six the the execution. execution months one. on

them And on has for product forward. BK and see strong a product them mentioned and the see Tinder roadmap shipping We clear we and XXXX, it. team executing moving

a which alluded more its and on that Tinder dependent a is that by to or is one have large financial achieving two that contribute goals to smaller that to, perspective confidence we number series Rather, swing thing, initiatives initiative it's to XXXX BK QX achieve really in the growth. growth roadmap have also we accelerating other the a from double-digit its big achieve. not The in and momentum because of

achieving the that really financial the does that we risk the year. for see objectives So reduce in

before. those optimizations, on the focused we And achievable And are growth team line they're optimizations. for strong of X/X highly year that think out for have the from we've a right coming in, high BK that specifically we've confidence we done Tinder pointed got of now the to sight which what revenue

mid-teens to while getting be QX. have we a there's early of So sight done still really ourselves. of ahead that in I want strong the back to and it's lot get don't a year, we line by like feel to work left to growth of

Mario from comes question Lu with Barclays. next The

A couple Great. Tinder. on

for In there. number then payer for could payers those only were terms the just quarter stopped of bit reason more the decline bought decline? payer a fourth just curious large given definition, and drivers And about of curious if if ones the the previously la that talk à carte XXX,XXX a the you quarter-on-quarter,

Sure.

that take well. me Let one as

kind things, quarter So fourth couple really payer which to. the Tinder's was of a alluded of affected I number just by

on discretionary in as younger product generally The and that momentum as less weakness income, first which Tinder lack -- consumer, weakness definitely did macro not is the overall in the is the consumers numbers Tinder the the and the impacting achieve and with well Q Tinder XXXX. pressure of payer product consumer,

QX itself Tinder QX manifests year as weaker And a perspective a Tinder a throughout to so well the revenue from and and led perspective. payer that as growth

are payer so two you the factors are key Tinder QX. And those that what in in affecting really number the see

initiative pricing maybe we that for starting up if we which probably continue much bigger about call, to all, a is the thing optimizations. us. on on as last we QX in didn't QX of that's end The talk most, XXXX doing did sorry, and are we're And on in doing big do and not going to a through focus product --

it's Tinder pricing effect in That's we had that's previously. the planning and revenue. happened relatively discount pricing to We're basically having what the intro more been on Tinder payer adverse of eliminating to numbers, than neutral But at and an QX.

points, And again, there. price have fewer payer which, points. much price impact the it's numbers We'll optimal get term, will our is to goal Tinder but a longer But positive. more payers to essentially at so higher revenue

So that's payer numbers. on an the ongoing year, going is some effect through project have to which Tinder

specifically year, our As do roadmap, tiers numbers not depending on level the on to depending overall to we optimizations or And payer you or Tinder. on RPP the know, goals, both we there's target depending revenue of volatility those through do in higher-priced going whether Tinder. tend be at we at not

be those us somewhat indifferent in we're terms could of off lot traded to variables by payers, of RPP metrics. There's but a that versus two

more We on are revenue focused and generation. much revenue

of did Tinder numbers subscribers at and products whether have of the on impact ALC or just buying people I question your a relatively asked that is about component pretty you payers. overall subscriber that And any tiny really Tinder Tinder numbers. but effect small, you payer quickly just there not would any The other they're to tell I was address are wanted are who from part

We only subscription. don't who Tinder not many but that see a ALC are taking payers

that's hasn't you really impact numbers payer that meaningful that's not So and really that other or trend -- in in the quarter. QX changed, any see a not on

optimizations price that that the those are affected highlight So probably numbers. additional the one I factor would

terms Tinder this provide payer I X% growth revenue. Great. and planning any users this terms color between is XQ, for in of the of And then slight just and towards But you're can for there the year, total XX% expected additional in a of in to terms you year in then of RPP? know the growth growth growth drivers

forecast Yes. to a want lot or really in today, because factors an tell don't payers of in of would and prioritize we on kind I specifically to others, growth of what for specifically. sitting RPP as locked payers the specifically but there's in I shift could more get growth balanced initiatives here what kind testing. for that year, for the between RPP calls succeeds you year outlook mean, swing it our on, goes relatively depending what that, succeed I than

we balanced. could here guess that, around best it's I and But shift. would sitting you really right now, our don't religion have that's relatively but So it tell

half out payers because the to year first out stronger year is the expect in the softer building, year initiatives rolled on. is growth other of The Tinder growth be just and you point the of I half that Tinder as the goes will that thing do payer I momentum would the back the in

weaker we initiatives of beginning growth year payers of not enough strong that in what the back half XXXX to saw payers growth in the And so you year. where the and last then in of opposite had led

year business in of You're generally. momentum where momentum you've payers momentum the building, this going to bit the have a this product building, effect opposite got

And growth year-over-year well our carry stronger which payers as obviously, of outlook the to growth, that half as should revenue is through stronger in the in back year.

are trends those the for So that expecting year. that's Hopefully, the we're helpful.

next comes Alexandra The with Goldman question Sachs. from Steiger

to gears Shifting Hinge.

ARPU should net guide revenue First, launched how some the from think provided tiers? early growth? revenue then share and the could $XXX maybe And plus and and also the HingeX you through in we the of million growth opportunity adds you please recently lens 'XX learnings payer second, feedback beyond then about

the a confident the HingeX contribution really proposition, been it this base. Alexandra, and where we've we're We expected million for it small question. months pleased to value our the testing stands, with percentage plan year. the Thanks, on will We're it user last few $XXX that refining spent the and Hinge deliver of

live, The new multiple launch for to new end February. global the price planned a buyer. goes unlock over when it. a points it is that the pay And after tier, kind you you of will optimize And dividends of rollout It's important understand we'll to years. premium continue

the if the higher tier, from in some and While we time over will works, value leans unique be terms that And price create higher HingeX even success believe be revenue of in world. long-term we incremental Hinge's will even benefit is it RPP more to relationships directly and Hinge realized for deleted more around motto. XXXX from feature conversion. a it lead into designed will to the

comes from with question Next Justin Patterson KeyBanc.

teams organizational top Will right this found next imprints perhaps Bernard, and lead broader year? could his over be different priorities the structure the the to that, of see product about you why talk then to talk lead start about in incentivize? for where as detail to And you product related could just we how some can and the you and

months organization Thanks, have spent what and with the impressed I've seen. Justin, I've learning about the for digging in last question. really and eight the been

the more that grow impacts could changes structural the and could do to at clear it from we efficient the help organization became us Tinder, changes innovate. me by and more making that positive some continue to being to Following

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to to there. a direct we want of invest now teams in So the And continue sight those businesses. I into each of have line

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exciting serving And really businesses of there's bringing products then new market, experience a team built there as Brands be to demographics. these think been well. launched bets, lot this out group unique with the before. new and of opportunities Emerging will We our and And coming has this

passionate I will As product and entire about new for we're the time, and long adding I've that believe and team letter, this the company. Will in how innovation. excited org really accountability Will known structure is ultimately, transparency as to the improve that he also I said a I've across We're know Wu personally CTO.

guy, with with he really on on the has be win. to incredible Gen that interacted think Los and a he'll has our ego well teams And an has media changed Angeles. wants Z really based Group. track in He innovation all across Tinder and way team and I the platforms. work Match He's He'll just low social me record

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working So to of on. more and that drive we that's something actively the trying to seeking, we're that tailor incentives we're are results

comes The next with JPMorgan. question Carpenter Cory from

given on a imply you So the dollar, does the downgrade But 'XX weaker basis. left a of FX-neutral outlook bit unchanged. this an

the decision keep driving on could Just going and an your driving versus any that FX-neutral to FX? your this? maybe brands about specifically perhaps more talk to changes basis hoping And view outlook reported you your at were through what's unchanged guide the certain cautious

think the broad -- I that to a a pretty it outlook. quite just doesn't wouldn't I it for now, decreased not way. a implicitly It's because it don't XX% adjusting range we right mean, X% characterize and year, we're just Yes. range. I it's have mean

has the weeks call. Cory, since really last XX know, XX well earnings and in as the as our it's volatile volatile or last been for last few as been months just you particularly FX

the it our last year call, at earnings think I full was like 'XX. for a X-point headwind

about in basically And it's think to headwind it's down a Now QX. neutral. I X-point

feel for that uncertainty with volatility front there peak been we on on a based full to there's happy but deny our And the it's uncertainty so level there's plus really season, stable. are trends 'XX. like still lot year of out So we've macro, around of a macro of lot hard

half in certainly, that of And the year, for the I first company out earnings is their think pretty calling much every call.

we all. the early X at year. to didn't It's all ranges given guidance that, think it was very our after stage start So this in February just adjusting prudent

But get or So the point the obviously, year a FX that either swing unchanged. of range goes you FX would be what out, we the as tailwind our to as that on. on within there above we factor potentially of to end tailwinds, our are left range depending rightly extent a level kind top from higher

and plays level So And I of revisit see see would I'm some as around rather that kind it quarter sure of how whether out, wait we'll well. it. some course, of next then, of stability we'll FX. revisit we

at really to really any business significant and your businesses. our of of -- outlook question, terms in changes But there's think our don't overall, I

across the of a answer businesses. good actually year to the start to As most Lauren I we've the said asked, question that in seen the

firmed have a also we feel and the uncertainty and so there's things cognizant of risk through. like And of fact up, but lot to we're battle things

of in feel innings an are perspective But a the still kind about this there's to point we we lot so play of And from good time. outlook at game. where in

plays see So how we're going it out. to

from Mathivanan The comes Wolfe question with next Research. Deepak

efforts buy these? ask process. a putting roadmap you're about since What into it you has the new been the the you update there? that search to have provide challenge? Just And CEO a with currently an for leader for to how important product Can in Tinder want is XXXX lot of

the look current well we're finding make to a want really that is sure meantime, we Tinder but working will candidate, well the to question. with team Thanks, the We're that the person for continuing for work together. In team. right the Deepak, leadership

has feel they've six making the really now gelling of where in really months, team through well we been execution for mode. good actually we progress, together stage We're gone to and are. and place good fully The kind with

if it to brings there's going really only lot no So We're to rush do person a the the CEO. to add a table.

Deepak. much so for Thanks that question,

comes with question Benjamin Bank. from next Black The Deutsche

mentioned XXXX. you margin AOI least that be flat in Gary, at should

when quarterly to we could Beyond should X% sort what downside here? impact or about how expect App changes, reduction should the we upside are force? year? also in And drive Store factors of the the cadence And throughout see finally, swing potentially the from margin fee thinking that be the then

focused we margins is flat, question, for your one if to goal on least making all, I of first very So say That It's a year-over-year improved Ben, at year. sure the drivers cost savings implementing we're the want not of deliver on behind plan. us. this

making sure that happens. very we're So to committed that,

event terms but see I the -- App factors but be play waiting by likely how the swing regulatory significant event think continue XXXX out, to Store a In to for way, XXXX. could processes from relief of we're is to aside the that us be Store a soon App as and relief as

factors. few there's swing a I think

better we're first executing roadmap what product than its Tinder really expecting. would around be The on

margin on would getting the side some growth Tinder be beneficial. So improved very revenue

performing better. they're Same perform tiers. test. would now, the they be extent thing as would upside small a but still Hinge be true it's And expect, That very on to right the new we

see And so to continues we'll how play that out.

helpful well, would And then to some this forecast. a very Japan recovery you'd year baked is us like at as for going be not our think currently but which happen point into is in to

generally, tailwinds, what of that the be macro any Just which year goes expecting helpful. any would macro we're improvement, but very not is as on,

generate plan. spend, things, rely this meaningful in we headcount, cetera. it's in terms going we And et marketing of environment, us cost overhead, savings on to those savings implemented But for this can't because

of margin we're look savings some to are at kind effects I And of which us. which year, significant growth the half the you implemented. the we When the degradation asked of for expecting cost have lower about, the we won't for first trends year, expecting in yet be

of compounding the deliver we half initiatives savings margin and growth, expecting call, get cost in expecting progresses we're enhanced year-over-year year, year we're of the there revenue back we is we've the this as throughout about to But also be the and which talked the improvement. benefits what and

half flat margin full better of we for that. half deliver second And together, get that margin in the target of less the have that's so the can how year, you confidence we when put year, the to or that improvement year, strong in we first and the

we're that note other exclude you half be the providing in to and were our those, margin than the including I'd would also actually the we're what first in terms if of costs. better outlook. But severance then

more mix fees. million the the have IAP and IAP as $X of I we The revenue got million And last we've of then want other this year. just headwinds quarter have Google raised highlight, first shift headwinds litigation from incremental $X continued thing having didn't you from 'XX, In to app. towards we Hinge about just of which fees the year, escrow

So our million plus that initiative of costs. costs that layer of control, that's $XX are on out savings top and essentially you cost the of incremental other severance

kinds those So of you year-over-year from items. pretty have significant headwinds

reducing has costs head been us, development at the would and your early for and for of product But just development, we're engineering in is continue that's to like and Tinder in draw thing margins, many incremental which visible to last in places. XXXX, few particularly we tech product in other XXXX, that awareness, going The terms slowed be. hired created some for because of a really lot quarters people moderate late which Hinge, I have companies we heads out hiring,

of hiring other this We're Hinge to really and constricting couple point. strong at a our growth business

cost So And the as we're given development you're on. XXXX trends. product year-over-year going hiring to see moderating of increases confident that, goes

tailwind that's well. So as for a margin us

about think kind of margin to our you the factors and cadence trajectory some are year. model those So as out for

with question Cowen. John next comes The Blackledge from

you Tinder to back for the rationale marketing campaign? further upcoming global Tinder, discuss the coming Just could

to a working more reflects story an drive investment make that I a to with Tinder this started Thanks, John, for I the Frankly, brand need real outcomes question. for. Tinder the that opportunity team, responsible saw the When positive for all area is we better marketing. is

actually never global years since and before, been Tinder campaign it's had campaign a marketing general. in actually has we've There brand been defined a

We relationship want to a the too feeling I has their is think whatever taken that people comfortable limited. come intent is. hold perception Tinder about platform the into

And ideas. relationship all team will the day. think campaign provocative top-of-funnel that this creates every possibilities of that The will over time. really drive celebrate had and some single We Tinder growth this creative

record role Tinder. And into roll things reaction. Melissa has because know CMO together the the and big, to campaigns at We're moved track campaign will team bold, our Tinder she Stay she OkCupid. great excited the I tuned. and really attention-grabbing see a of at intentionally We do out first

Shweta from with Khajuria The question comes next Evercore ISI.

of Most could been about if you my questions have talk addressed. Japan. But please

but happen? right not now? You upside. what on that you seeing what progress could that there, Or commentary you're much could when mentioned that -- Any drive your think sense you're seeing or on

level delivering full reported the then for And please Could reiterating the now have line conservatism top both confident Gary, and the to you this in you about, of have follow-up like I for is, with the margins? do the it guidance, and/or talk you're guidance sounds very confidence how the you -- year.

if are I conditions to further much more outlook, cost the our know we we and Obviously, on can control, the that think Well, discipline. we've that's obviously, steps more in taken lead going dictate. go to margin

feel something the to. is margins. very in flat are I we That better confident committed So or that extremely

think year, I outlook seen rightfully the we've so we for based far this incremental you that feel on out pointed what in our year. confidence

thoughtful I think to guidance. try and the response provide to month too in the it's when our to conservative early, outlook. adjusting said tend little one further really we I really And year as be just we start a But into Cory's question, to

a an environment take. and the think remain a of lot I that's lot the unknown, and prudent course of where things in there's especially right that to So course uncertainty

sticking So we're by it.

to it's to giving that year confidence what is seeing that we've us. the this I as the been going get But tried come fruition for fair is morning think to on. very what solid say goes is start to across us has we're And to that that the year

wildcard. a is Japan

previously, steps get in things came as there's the market less there government But all socialization restrictions to real like from amount trying we've discourage reasonable COVID. the that because trying it, been really that. to masks of of that about that is talked a COVID fully think behind I to and take from wearing

of is kind is that All society normal levels far. going when I of really so a so we more it result can happens And of And of we're it tell that, there hard a not socialization seen much as rebound quarters It's number say. is now. to to haven't in XXXX. assuming really to you back been

and you rebound come that At be. it's a some to when tell say to precisely cannot you likely that's in seen to going I point, market. we're we've going

spur assuming sooner. we're both market our in a it meaningful would to again, from we're brand will the Japan And such which and for that hoping an that Pairs conservatism But Japanese catalyst in market, standpoint, not rebound upside activity is come this and So for to we're wrong, year. us to Tinder be because important try we're looking market our brand.

But have seeing standpoint right dictates to rebound So on from we'll see. in Japanese now, kind what anything of market. again, wait a in and we're assuming conservatism, it not based the

I we're that, know All With time. out right. of

everybody, quarter. us. to So for the to next support, off, we're you, in the We but we you thank continued joining and will appreciate talk going sign

concluded. Thank now today's for has conference attending The you presentation.

now may You disconnect.