Match (MTCH) 3 May 232023 Q1 Earnings call transcript

Good day, and welcome to the Match Group First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [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. ahead. go Please

then and led operator, CFO, 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 President

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

more as the good nearly up to We've by a These real highlighting teams set areas never the on. Thanks, morning, to for Group's worked products. closely restructured Match but and there I having to has are served team opportunities internal for Match all to this is Group Having everyone. achieved start to CEO want and and the ahead. cross-brand speed the to off and optimize lot long-term full-year, We growth, a businesses improve operations, before. together ship improve impact increase do and a changes work changes collaboration Tanny, made this accomplishments have

app should and like. was the to $X challenges for to innovate, reaccelerate together in an the working in tackle Hinge revenue. under just XXXX We what look Hinge are acquisition million growth. bar We generating set acquired A+ when continues

revenue X to in approximately generate $XXX and on five is total later, payers Just million XXXX. Hinge surpassed million years has for track

product, is growth Group's with Match on and coupled ability Hinge's team's focus to operational and support. largely expertise the to passion exponential due

Hinge, launched much Hinge we early a family. are excited The team as be English-speaking see expanding impressed meaningful successfully has to grow is in I also at results. them and HingeX, I'm continue tier, markets, Group addition the and momentum the heights so In to to these with Match its successfully new new traction ahead. runway part subscription internationally, of impressed by and to

Now turning has energy been of where the majority Tinder, to our focused.

all that As to Tinder Tinder loss team of was that shored changes you to of made was organization facing. lack we've turnover frequent and output up changes leadership These know, address knowledge some the occurring. Tinder's the immediately the restructured have institutional and

an above the level give that to then, Tinder. XX months in Just you single a voluntarily leadership took depart team voluntarily and example, not before had we the we of depart Tinder new person Since VPs roughly had have over.

for it. in Tinder, around whole vision roadmap we the shared This our roadmap Back we've a are and February, XXXX. of for culmination changes The near-term product a rallied has organization made is detailed working.

are we initiatives optimizing very team height April, momentum addition to testing the and in end early beginning recently the tiered at still at than shipping is delivery weekly in more build features fact, to is launched In U.S. and it QX, Tinder XXXX. of to were their launched starting packages in in pricing. the these subscription they early. the We see of revenue but

well. fully my or adjustments in ecosystem, delicate things that have One features it's new non-payers minor the as a role of and of experience, the only user I've for dating understand is payers, have on learned can the to platforms CEO Tinder but impact, not as important

over the testing This rolling why time. teams vital for is cautious to muted revenue rigorously are features the reason the test we is our start, approach and is out at impact a the one and introducing new but to methodically as ecosystem will grow ensure it right them for whole. So features

to redefining focus rolled and Its especially its having focus brand campaign initial key marketing was young Tinder has impact. perception, Another a primary Tinder's strong QX been it's improve out in among narrative. women.

we markets. brand now intent. and we've U.S. detailed and began expanded in UK then the in has noticeable seen consideration to and Marketing As improvements the in letter, additional

As has and multi-phase started improved but step in user only a result, is it Tinder including several markets, in the to a key growth first U.S. see campaign. UK, the

connection. tasked redefined meaningful like to to work I can and for experience this evaluate unlock way can AI, which positioned team on mobile that the continues massive focus Tinder for shift to leadership a believe team to the well our which the with momentum exit have the we category, is financial As sustainable to technologies world find XXXX Zooming to is around the a our the Group's improved purpose Tinder, back be growth. singles ago. expand I CTO everyone to the innovate so out, years the build performance believe dating and longer execution, just term same creation with new XX of Match on led and emerging category

There adoption. is post-Match phase we a as and growth. leverage these new leverage the can experience We as the to creation, believe profile well of discovery, unlock drive in to capabilities matching to opportunity significant next throughout AI new user

shareholder delicate sustained As while wins cognizant short-term between a driving we achieving balance leadership the team, value. are of revenue

innovative years our objectives to XXXX hit are and delivering while prudently, user focused come. compelling achieving to assessing unique, both also the experiences opportunities and We on expectations trade-offs for

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

hello, BK, everyone. Thanks, and

we as revenue resulted range was than coming up on X% call. on total that QX earnings to million slightly million, basis. provided ourselves X% our our notable our $XXX year-over-year standards Our a FX-neutral on headwind the that QX below provided revenue of was have not revenue $X expect year-over-year. February total more million, headwind outlook once we FX would $XXX was XXXX FX call. the we unexpected we year-over-year total expected The additional down The an when in in been at still headwind again

FX-neutral QX. by total company-wide. year-over-year On directly we year-over-year users, X% basis, year-over-year, X% down earned revenue up an is This which FX-neutral X% driven from QX down to RPP $XX.X was revenue, RPP X% up year-over-year was was our at X% payers million and Direct in $XX.XX. up

Tinder slightly while the up $XX.XX. declined was $XX.X year-over-year our direct FX-neutral. payers and at saw million, year-over-year the was revenue impacted X% relatively also revenue Tinder by year-over-year revenue in underperformed Tinder QX RPP carte Tinder in flat flat at million year-over-year quarter. macro $XXX at growth, were expectations year-over-year relatively environment. la subscription à flat

our undertook and growth optimizations QX. quarter, in subscriptions end several markets, User U.S. including impact towards below weekly was quarter the in released on Tinder their the revenue of the the pricing limiting expectations. slightly

much contribution. the funnel as the performance to and and of strengthened the to somewhat, have we've subscription top April, started optimizations improved deliver in see revenue pricing Tinder tangible begun has However, weekly

test brand younger objectives subscriptions achieving women. markets sentiment, in Tinder introduced among of weekly additional plans in quarter. and optimizations especially Tinder its this its improving marketing pricing users, to and it's QX campaign particularly

a U.S. that position several the As in in and notably UK. key has most market of campaign, result downloads the Tinder's markets, terms of improved

our while totaled up major in as with premium Our of slightly the tier continues continues detailed new And with the Hinge's to perform was Hinge over of speaking very Hinge ahead payers XX% performance quarter, were XX% in and to year-over-year. brand letter, well markets in FX-neutral XX% up $XX XX%, continued Hinge more expectations over Hinge strongly. as be as The RPP to X million outstanding. at the year-over-year, our take consistent HingeX expectations. continue the European subscription revenue contribute English have grew of rate tiers expansion core we direct over to XX% traction.

declined BLK, The though only X% the spend and continue At our Our stronger on direct MG FX-neutral E&E moderate & revenue Hyperconnect, year-over-year consistent to The and saw declined revenue declines. including Both Azar X% performance though XX% X% Evergreen expectations. grew Asia collectively down Emerging, X% Hakuna XX% as but direct year-over-year, revenue year-over-year. FX-neutral. an saw Emerging in basis, year-over-year year-over-year, League of with Brands. marketing Chispa, was At and Brands, QX, at excess MG business Pairs Evergreen we Asia direct grew in FX-neutral direct revenue much

representing in the total in year-over-year, $XX of despite of a prior XX%. year-over-year shortfall costs, marketers or income our X% reducing revenue AOI XX% advertising and operating decrease continued overhead tighten QX ad XX%. a down as margin margin AOI Operating was million, QX a for well. prices year-over-year as expectations, declined. costs our globally above down we revenue and further marketing expectations QX, rationalizing were $XXX focus was Indirect budgets adjusted additional income versus X% on and margins million some spend $XXX to QX, million as continue to was

grew to flat Cost X% SBC year-over-year similar incurred approximately costs fees in of increased but of QX. year-over-year. including due streamer which the SBC to $X and fees Live revenue, escrow will $X expense, were declined, severance of Store year-over-year, XX% due Overall expense represented be QX. primarily and total payment QX. in last essentially Google, million the of year-over-year expenses, in flat revenue including App We million

total or spend, to seen at year-over-year year-over-year The at percentage Selling fourth million X Selling increased was and sales XX%. virtually Hinge and Brands revenue down discipline and year-over-year spend We $XX marketing where Tinder, exercise Evergreen spend year-over-year SBC meaningfully our it marketing but points and overall. modestly XX% brands. reduce all continue ROI spend a at expense, we to a quarter, year-over-year. decreased as and we've marketing consecutive including reduction other was to at marketing of down as

of including where Product only this late is portfolio of within and remains point, engineering reflecting XX% the Tinder active. Hinge. XXXX expense, our hiring XX% SBC at total At year-over-year at and grew were particularly in impact primarily major XXXX, business early development costs, revenue, hiring Hinge the

of rates Interest in the also given our rate are increased term primarily expenses floating cash. but we structure due very to income meaningfully XX% higher interest QX, loan, increased earning year-over-year on our

trailing was AOI Our leverage QX. net and at leverage X.Xx of was gross end the Xx

to Xx. of the be investments Our ended for on We quarter million target cash, $XXX net equivalence, below remains cash short-term hand. and with leverage

in X.X of we existing At buyback We end of our the the our million remaining only shares QX, $XXX shares X.X million repurchased under for million. quarter authorization. common had

Directors new $X we Our authorized plan, to three which existing deploy years. Board to billion replace expect a buyback the of two has over to next the

growth shareholder million flow $XXX generate free approximately the this the letter, in coming to discussed expect we we further of As year years. with over cash

at and to of return return flow to for Board tools intend will determine of In our the right cash to we free Directors, shareholders. our we XX% least of consultation capital. forward, with use Going timing

priorities we shareholders investment make do or business; acquisitions. strengthen three, not acquisition allocation and to even our compelling are to to in sheet; more capital capital to invest We opportunities. our compelling Our if sufficient return balance organically one, two, opt identify may to

X% year-over-year. we $XXX For million expect QX $XXX XXXX, up Match to for of Group total X% to million, revenue

Tinder to We X slightly FX FX X low-single headwind. At direct revenue also we basis, a sequential direct achieving in sequential and percentage revenue On anticipate year-over-year to the gives a with expect growth Tinder, year-over-year point is than exit a be expect we the headwind. increase than expect strong confidence year-over-year, we momentum demonstrates be in to that strong This rates QX. little more low-to-mid up in us point a digits more building range. single-digit

payers decline Tinder QX and to We sequentially. year-over-year expect

and a and it of that number have out and important negative various on conversion and the times are globally, elected of in maximize one payers a which implement various on is we but at large the packages tested, Tinder It positive introduction believe rolled flight will being are are various revenue, of of negative to levels price correspondingly markets. the understand higher will initiatives impact implementation price U.S. direct changes, the There payers. including which in weekly in having impacts to

sequential that changes payer year of Tinder stronger the these are additions implemented. be by expect We once end will much the

Hinge's We year-over-year strong accelerating effects driven direct a and new the to growth, tiers continued expect in deliver markets English speaking by meaningfully and of European the continued Hinge revenue QX performance expansion. pricing

on to FX-neutral Asia MG and year-over-year modestly basis. year-over-year flat essentially expect an decline be We in QX

each with groups similar as Brands similar as Emerging as Emerging of the decline to rates case year-over-year at the in expect brands & the Evergreen & well. of growth case direct Evergreen QX was at We was our in revenue QX rates

broaden we our expect revenue offer year-over-year opportunities advertising for QX in We to closer we as indirect be to flat products. the

of approximately at in expect We million midpoints margin the the AOI of ranges. representing to $XXX million XX% of QX, $XXX

other to newly spend to expect specifically at portfolio. support Hinge QX, marketing year-over-year overall allocate marketing brand reductions our to expect in its and We almost We some every incubated Tinder with this the app increase introduction dollars in in summer. to do

to expect be to a fees though placing Google stop escrow the QX, continue terms in have July We to. year-over-year we to expect headwind agreed after funds IAP we the into per

other control. anticipate very categories incurring in continue We costs spending million cautious approximately our and on of to QX. within be spending similar $X expect in severance to all We

at success overall that emerging the direct in build momentum of the year-over-year have confidence revenue the the over Given business the to expect will will we continue Tinder total QX, digits, growth we recent company's coming reach year-over-year double growth. Tinder the initiatives to revenue and as quarters,

had than year. anticipate we slightly We of QX modestly our QX and back a weaker admittedly we November full-year outlook have expected a in when weaker last provided

April, to such, how improving we the the so see said, outlook be lower our at will As for an momentum and to had the and we there end full-year. total continue That Tinder we've that progress. revenue in to initiatives eager closer is likelihood all strong increasing product is are marketing performance of growth

remain $XXX million deliver it direct in that also will We momentum revenue approximately Hinge's to of XXXX. confident lead

AOI terms target full-year XXXX year. XX% achieved flat to or than In continue margin, of the last we we better

continue initiatives year-over-year and take the We hold as to savings cost topline reaccelerates. expect benefits growth Tinder of improving our margins

the of news the a in Digital Appeal is year. legislatures lot in the Circuit. a result legal and versus EU we and remain App Act around Games Store continues was optimistic that the policies, of both regarding developments change as next the recent world Epic to There further be especially early The Xth most Apple in Markets coming, systems

to that promote not payment the expensive our we be too of with decision, customer methods future. in improved less that service As will to are a able hopeful increasingly result users distant we

not the first to momentum financial and last for us view build of growth of positioned take our That confident product we full-year November, our but as has the profitability outlook half the that expected a and that momentum, provided we half When stronger said well back long-term. I improved in time much XXXX are to year little discipline as in changed.

see should We little and the year made for are end this provide outset preferred strongly we've well. are momentum but much of performance better to would believe year, XXXX, have financial we the next momentum changes at as we building, gradually which momentum more a working, the positioned of by is into

Additionally, that a return we believe and growth very compelling of our level allocation of can create our our updated path approach for combination capital the shareholders. to stronger

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

you. Thank

from [Operator begin now James Our with will ahead. question-and-answer We Instructions] question Please Heaney go comes the Jefferies. session. first

Thanks for taking the question.

that specifically can at uplift? Just April? you're for seeing Gary, you that are talk that success Is price about the encouraging in optimizations other driving specific you're Thanks. on are signs around there Or the the primarily seeing Tinder increases?

undertaken. Tinder user old initiatives referring KPIs because morning. well Tinder for new marketing the improvement James seen really, seen in reactivations other Good campaign to is here has actually question. April. of And in and several we've We've Thanks, what I'm improvement that sign-ups the And of as as users.

of five until and now optimizations revenue extent April. subscriptions incremental which And to major lift, terms leading the is price they're to rollout any revenue. didn't weekly in significant In the countries, new

incremental revenue revenue. strength that's and subscription the seeing price we're take many of in test rollout And We're we of add going optimizations really in So funnel initiatives both several in to going weekly markets, terms the geographies top as to QX. more in packages hold. these the

we're month revenue One success call, the and the make of isn't really have with the optimistic enough on the but side. seeing feel a given we to funnel top initiatives

and giving in QX. what leading as doing that team sequential and so that's a that's improved to much outlook And results, QX are Tinder revenue result contemplates to the optimism. us really BK our compared is at of improvement And that, showing

you. Thank

go with question from Ygal Please next comes Our Arounian Citi. ahead.

guys. morning, for Thanks questions. taking Good the

some not some How commentary on I dating more to third-party the on Maybe And continue Just Thanks. on that's about hit impacting to of the are time well. the there specifically experience take to the map? thinking are competing uses road what that want Tinder. products apps? monetization users that of how And the letter been about talk Tinder drive par focus on as important product the in side, on to map. get road product can on here. apps much on the the you women's the And other the experience is trying to lift the on and with most pointing

to around a Thanks about in, mentioned moved faster, for diligent in some start exciting for we to get I our the wanted setting But focused we've In stable but then up the the a the is around and organization of wanted have swirling that thought really been a that's actually culture had creative what with a doing last And the distractions. Ygal. Gary little recent with I what road that and great do a our like Jumping lot month, stop team. challenging have was bit we had can solid really question, momentum team we're really could lot journey a we be this seen again. ideas. that, of a bit and map. reduce over I galvanize and technologists do a jump because to the to and lot of And clear start, of us.

against go do features, there's everything these with lot they map pick And to of a me how respect, Tinder our platform it's that to this how another our us every and within experiences came thought of that, When with rewarding important and our kind our work road up about to creating a day. one because relevancy, features three for single the CPO having together. are and Rs: been concept ensure ecosystem do realness intertwined. dates most you're within is asking actually But around that that and our experience hard

features. three those maybe But of I guess can I highlight

women One of that broadly to based most This in-depth create women. more matches, features called hopefully well. feature experience on You. want research we that You to and was conversations What to that Just when a believe great a matches and from designed ground do the people is experience, good is to out so have men will matter have forward us I that the up will For lead Just a to we rolling lead a experience. as For look to with that features that deliver having matches, better is meetings. good have And real-life better I women

And comes very the maintaining we and think, experience platform. we're efforts eliminate quality the lead will base, user utilize revenue lead it are focused going to to of ecosystem, bad the a and I grinding and And and us we've well. to actors our to gets health, and started as better experiences want When this from miss. spammers today, technology healthier the this is, that on policies to our platform to scale and throughout those and through year. for user We to better real

I'm product in is Another that development. is high-end about member personally currently experience the really excited that

on Tinder. compelling within a a great product actually I new working experience This this. is tap team will have and think We set

I've we couple product our did momentum dramatically last the has working are really and right in from we're effort. to offer year. things I'm going year. find less to I time Thanks rolling to last forward and looking We right faster to at experiences out were this the for teams, this way product that months right matches build spent think with starting my over to velocity that the we hunt as that career see where the question. for the with fun a really foundation, users increased

Thank you.

Please with comes ahead. next Helfstein Jason from Our question Oppenheimer. go

Thanks Hey. the for question. taking

more of housekeeping, word is detail increase confident about just Tinder meant. the on used you longer-term half the what but I are move for about talk premium. of kind a net plans, this like strategically? then thinking you you the weekly, at completely right the how significantly Tinder the testing more can on price the more but just that Thanks. then adds? in price about the And second color about why understand specifically feel secondly, idea So And you bit the additional

Sure.

in jump take Jason. I know this getting is that, attention. me Let lot of and a

not didn't want I philosophy that has the case so done Tinder of they've to now try think basis, of just pricing on embarked is about optimizing through of around pricing try a And and Really where price what it's discounts we they through hadn't we and bit and random to quarters, couple And at little from sense a be a And eliminated make strategy. on some think in and their explain a programs looked at what's to quarters long-term which value should testing previous Tinder have been regular happening gone really sense like from to those kind here long-term perspective. a ago, and because this there. because perspective. we've really behind things happening comprehensive and offers those a determine value talked a whether that made existed have strategy something that, of on but them business, until going we thoughtfully is

So year, going impact in that to as continued and you quarter on saw the Tinder last back rationalize continued to some optimize. first and payers

and piece very to much well that So a the comprehensive want kind the at it's make thought of part more through. I Tinder that understand. that I and very company thinking good, strategy is of is through generally as And people was sure it good of said, first actually

different And where at Tinder very the that the Tinder are the quarter, the market. so we've in the prices competitors, of here now geographies below believe the well pricing end first well we operates. all below at in looked first And quarter, offers that

talked I've to revenue certain RPP we those, specific room and Tinder. a we're what many there's overall price payers maximize maximizing. on And Because not spots. variance in And to focused be KPI, whether to increase we've is tested times it's at about will want revenue driving see what so or

level levels we system. to the on overall on various we rollout, roll tested in to that QX have so as through effect settled and going And the a payers in U.S. We've that's QX.

so those variants are important four additional And maximize exactly Canada, going and are the tests geographies. four sense, most know to And Tinder. now we into Japan, geographies: Australia what the for make expanded going revenue UK, those don't geographies in we've price to

we're same year variant those expect we the again. and if But in geographies that payers going prevailed prevails maximizing. be see in kind to on, So price. to that the rolls additional impact again, you U.S., as in on test of it that But assume change the conversion will revenue from

the be incremental that And other so the geographies. the that we and to revenue, fact working we've U.S. appear made these changes expect in thing appear driving in to be same the

giving what into revenue QX an for numbers through confidence be That's for the payers you significant in price see negative It but what that is on prevail means. what I a the the those and Tinder, we'll us on there's payers' on in determine the But significant think quarters. incremental Tinder. between and impact system will QX we to effects can variants And obviously, this corresponding all depends year, tell improvement in correlation washes sequential think payers. at inverse there as the I through late

And we of and of adds. net it so ultimately, out. have sort these business changes these a return should payer back will that, optimizations have of out, pricing play need we be play cadence will normal where all And do the more been, to to once

understanding And better project a never people give to helpful going that's this a that's what's going is on. truly to hopefully, of finish. So

little price, going in is be to we that's to going optimizing Tinder and But regular work ultimately, on of forward. to so markets, a these we need of catch-up. through be a need thinking there's the big bit do a dynamics So basis, bulk

Our question Please next Research. from Dan go Salmon New comes ahead. with Street

there? We hear you. Dan, you are can't

go. you There

me Can that. now? about hear Sorry you

can. We

Good stuff. Okay.

this from an little in Tinder's on here? a So mentioned with marketing you of regular It something little it Happy see supported regularly. campaign. like as brand early bit I of big it or a be with you're but to a obviously, iterations you going lines? needs thing? significant making is to more of creative. made And just brand if returns return ask about one, BK slip to a the are markets, And sounds to into Maybe part nature can those The fairly cash commitment Board new more free every a happy the expanding considering coming one any a – Is ongoing quick talk just there can there about I Maybe maybe more year. are Obviously, the You be in where just support wanted bit flow goes buybacks it. XX% dividend? one change along are to that. Gary. you

Thanks the first the handle of question. can handle and for question. part, the Gary much, Great. part the so Dan, I'll second

campaign First, I you fantastic want this a to thank team campaign, hard have in out that to been for really we asking the the get marketplace. because question marketing has around that working

to spread the relied on virality of One of app too leading in the observations that we've historically, marketplace. I made upon joining Tinder the and that that organization is much

of narrative invested enough a in this And went And story. of team and with place passion We that why own And the around in that can taken has speed. story experiences narrative. second the not we the from put that come have that its in energy brand it a Tinder amount tells jumping and really that kind into that's that. that starts jumping multiple possibilities different and first idea with come or swipe time the in the all from great time tremendous

the to goal perception. approach, of a initially drive is campaign Now the this is and brand multi-staged

personally in couple and Beach the Angeles, United to States to months And targeting, that over the brand over we're Los really and we're in in XX we're knowing in over headquarters. Manhattan seen women that major the So here is of the three just news consideration as actually starting we're great points specifically in commute ages in from it progress, U.K. Tinder strong my That's XX. both good see a that to intent. we've increases all momentum, early with market around well markets especially see the I as

Now as Gary of see some top has improvement said, in funnel. we started to really strong

well. So to first see But this great is stage. that's the as

marketing team. our about then of that off starting our and road, next closely the we're with what Tinder. product community features stages product are campaign, which as describe our we overall for building really the what can platform, upon which teams positive down then So that those brand of I'm can excited in more And is working super build the means

of will to do then long-term brand second expect campaigns We that effects perception accelerate a the Gary, be and want to downloads you and part? the registrations. improve, take these

just On talk for balance allocation, the Sure. shareholders. about letter, amount to the cash want want a sheet. the building return we and significant cash as balance of on it sake to capital sheet company build don't of the flow, we We in the cash to generates on

to And look really responsibility dividends of to so available and it's our Board to of with includes capital tools which at shareholders, the that buybacks. all are return Directors our

And afraid point – going Board at that. extent anything buyback, But sense a makes so the stock large and consider authorized to with we're The valuations that We're in out. that's the is. dividend not to implement share future, our some has is evolved, the evolved. that. new happy we're our to And world rule not plan have not to price where

the as of evaluate what the We a So see them. tools. to we'll way look the return we capital constantly shareholders. And makes think at to most kind sense all we'll

So thinking capital on allocation. that's our

Okay. Very both. you helpful. Thank

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

to much you Thank please you revenues. very Okay. my in talk million about Hinge? question. $XXX Could You're for annual guiding taking

you. sustainable and you confidence And growth should we margin profile grow as both gives your an Tinder and about Hinge that You're think Thank concurrently? can asset? reiterating what guide. Hinge's How

Sure.

the we're me Shweta. of that has. a one. that say, of very brand with traction things. would I couple mean Let that, by take first Hinge, the And I all, What obviously, on Thanks, pleased

by different very fact of of assured. global tells like or not English-speaking any encouraging was that than like for France, First its that resonance, the ability market, the different fact the both market, culturally, marketing that's Germany organic in into core when is well. brand very France is other which that's any markets, resonate in expand and brand around world. than that go a that's Germany market and ability to a And traction that efforts you its something or markets has has organic to as the the India, or really the without like and really in expansion all, Hinge markets, outside obviously that gets in traction significant a And other market European resonates brand the we which sign a market encouraging

first both the their brand that's as to and that's believe with So that [indiscernible] product really are really around point. critical users, do really story be resonating a Hinge experience fact. design And well we at as the

monetization its of Hinge user other point lot globally got runway would It's monetization. thing, journey. a is in early I very lot The growth. got of It's out on runway a that is on

to So it for just on we're that all time and and to that still it's of has capturing focused a and runway, do a happen. a of lot lot really matter

this business think it's year all numbers international years, Europe four, So together going year to next the when look that basis you and to factor few let's years investments that we're by think in can doing as revenue few can do in a five $X growth over plan. of a from I it right be say, we this the you rates making year. And we if over expansion, kind of do do a just in means of at, the next that billion-plus levels drive on what think a perspective, what around terms percentage that maintain Hinge

be margin And company on the so to the to And will that then put gradually, couple some years of overall business continues I pressure very over the consistent get margins. as think that's of that, margins at of with level more level will next strong. Hinge growth a the

kind And of that Hinge. performance seeing financial out we're of to forward so looking

lot Hinge to we a Hinge people we ample and Tinder how about not that to of Tinder the talk And took sorry, of effects there's time. effort in the opportunity of shareholder may letter – as cannibalistic think same Tinder grow think We at the think. for both much are as on Hinge on

different the certain which Tinder all And But other, reiterate prefer I said is use just purposes. other. and the at to to the certain ethos brand of one to aspects consumers especially for and that, So different the letter, are and that aspects I'm will users, product one Tinder experience and them they young they Hinge important but consumers some going of in is Hinge use we and because the many, that emphasize there. And both not like understand understand, different. of are that something which

so is growth, And all market in the Match that like the accretive some to Hinge market overall with of Group's grow seeing that the given shareholder of French and that we impact a having of both those brands can provided much the overall letter. we're tells us data and Tinder we've in that in of simultaneously,

that you your some questions. to gives hopefully, So color

Gary. helpful. that's Thanks, Yes,

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

color America, opportunity on North in demo. to Great. thought Europe the user in XX Tinder's letter Thanks. was the there XX in I in shareholder interesting paying

recent Tinder to like see lapsed the Tinder's the follow-up, getting growth time a never-been And challenges, paying what as you of user as there's drivers do paying laid what runway ample further platform? for Thanks. it payer you of Given feels key and/or users kind user implies growth? both over out

John. Thanks, Sure.

met users' of So few ahead understand been and product lapsed lapsed they've that what users one at go always historically. very something point important been has lapsed as that that some a very said reactivate components users there's its you Tinder at to experience is actually it's those of users And seen well. good the pool Tinder's quarters not out, last key we've to large Tinder declined in and as has Tinder reactivate. ability has But reactivating in growth we and the letter, expectations. of for to the

put hasn't come simply, you the product. reason it lapsed to to kind Tinder of given users if back So enough

team, product improve, the the for as also well, BK, success will of optimistic and attracting better experience, a users Tinder's these led Tinder narrative new we're as improves experience the in job do users so thing should attracting say that same is lapsed brand we And reactivating that product as really the rate by increase. the can And new users.

Now lapsed overall user lapsed Tinder knew of level terms who's before Tinder to product user someone on obviously, to has both achieve in it's users growth who's succeed growth needs users much it. easier the than of that never to achieve. the fronts, But new a we and to tried think used re-attract attracting

both on So it fronts needs push accomplish that. and to

that again the the in makes there's rest pool clear, But pool a Tinder. And never users a the geographies users there's in Tinder lapsed America, other of as of big to and in the you for APAC and said, tried North big of and letter never-tried go really developed have world markets, Europe, reactivate.

question and ample both of users also we and really there's that level a to Tinder. for to see at execution runway reactivating the achieve growth, go. would brand So lapsed can first-time in growth of terms it's really that just users of product Tinder the attracting user And like

you. Thank

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

Hinge. just Great. on Thanks. one Maybe

in difficult Thank As a thinking we now? think how still bit about expansion, Any about expansion? might you. you're timing those international you right are think the Europe, I major little understanding now enter app or the markets when half Asia, in are second all thoughts markets around

When continues daters individual with on that has makes progress incredible have top fantastic. culturalize about Thanks, performance. markets, That the where $XXX message. apps, make these but million we mentioned, that's these of what and each these The also Hinge into just just markets. Lauren, sense Hinge so the five be experience hit track we this international years for for and one don't the question. Hinge extends Gary year, excited go joining of from I'm in we priorities family Hinge's been far we're to expansion across to ago. my for our started we apps marketing this the But really made Like actually localize year.

of these market, a to bespoke also use in to So a entrenching markets well. as but European term, going ourselves approach do we

year Hinge Europe across dating this important for is establish year. to plan on really path that us the this app. continue intentioned our steady we as It's the So throughout

in itself but consider year. more new Lauren. XXXX, we're to to focused most XXXX. next today of for do, on unveil outside Europe Europe in We're actually lot going and in work markets are markets question, the but to going that's we the We Thanks have a over

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

Thank you for my questions. taking

So of are single-digit in low can on revenue how potential of the about downside these a us you. building your Thank give What the color revenue growth? lastly, growth, revenue evolve guide? context anticipates upside assumptions XXXX of or that different went last into your should guide, think QX which updated we bit more areas thinking did And you how And since through XXXX the the the guide some update? initially? are when then what blocks

that Sure. one. I'll take

in little a we're there a the only and building digits. what a of letter, revenue exactly So as There's get we're lot in direct early to Tinder growth growth pinpoint confident to the we level the still in the about at business. momentum we're It's flight, in QX total going year-over-year initiatives double lot because that talked rates revenue in of company to May. beginning of

out. need But to about. obviously, see things really we play talked little So bit going encouraging, I are to how April more a has as been

feel for QX. in exit good potential about we so the And rates

end exit as you campaign, as top momentum you then and of going is we apparent well, what are QX growth going initiatives certainly, the to place we the at to by you determine if to well is we really for which swing to with around terms achieved rate in kind the and what to at you trajectory. up look what you overall get sort rate. funnel look the outlook going and in our is at five what's for The the we QX, I'm extrapolate the so there, growth happen and happen of of so factor, full-year sure to the of think that And or percent, is revenue really in Tinder QX others rate QX neighborhood. where biggest QX in exactly of have a as marketing all land The that

gives a swing seeing really that's color And in us the and we're we've what factor. think, big I given, lot on confidence So going. what where we're of

our And revenue. other its seeing à carte that one now at on reasonably a la I terms the right actually other expectations we're environment, The is mentioned carte. any à having happening big of significant component what's we're monitoring which or thing at on movement impact in which Tinder, is macro la way not the of is

factor are inappropriate. way continues is with change a kind of la we not the for right swing trajectory been up a assumes year la now, our swings that But down. evidence it's around major assumptions any that carte our assumption. the potential or So or That à à in carte see don't modest

so And at baked properly outlook I all, that's this point. think, our into

the watching we're are progresses. the things that those as year So

Thank you.

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

the question. for Thanks Great.

costs, be flat in you obviously the to least guide pivoting Just to XXXX. margins at AOI reiterated for where

Thank beyond growth look could the the Is baked how there trade-off we that what be factors swing you. about at downside up and moderation And between room outlook are should major drive App revenue upside legacy or changes, there? into the structure brands? there? tighten thinking if fee of we store So any further? the What's expense cost sort your to

Sure.

to or committed margins year. terms in of the So of for better we're margins, first all, flat maintaining

is so guiding And that one of around our this. principles

going around the trajectory. out I very is the to Alexandra's margin. I factor with the Tinder, more which of get company Tinder overall a more just we And out business. talked is year that's the about growth the we Tinder, higher high-margin Tinder's more question, what biggest margin really help is of think improve swing get for the

factor. biggest that's So swing the

driving one. growth Tinder at obviously, So job is

question thoughtful There's very but terms you drive is we very are to on around disciplined of around goal our can more cost savings, generally. In do, first on being cost, growth. always side, revenue your marketing the expenses

to about or for really better Because going confines margins as the that we're thoughtful savings ability revenue. and between growth, is the of to revenue company we be I the grow said within and maintaining so full-year. before, want And protect generally the the trade-offs one flat continue to to job for cost

Brands, at we're businesses, marketing making efforts. us into the spend in Evergreen it as trade-offs want at momentum that makes those obviously a Hinge. see is at of more to more those we marketing the In of source and reducing spend And marketing spend there to terms Tinder

terms job our so And which that, calibrate we're is to in portfolio. of trying managing a

in year Brands allow invest the at maintain feel our marketing for now, us to outlook level are spend at sufficient Evergreen like the I those as Tinder and contemplates rolling brands well talking to The Right of some League we feel and at manageable the declines that need to out about Hinge, in we like initiatives new levels we're app summer. as the new the both in that invest a

better I for of the is So ability into all incorporated appropriately that leaves to saying. think margins, our with and us or outlook generate flat we've year the as been

Great. Thank much. very you

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

existing Perhaps think time? navigating you through you experience this slowing. out change can legacy platform way Thank platform and dating saying big-picture solid how Can a a incubating? it something you build multipart like BK, meaningful emerging and a opportunity very shifts, often shift have Great. AI much. your brands question. you're ones Match into? for Gary, you the over expense how Thank not mobile. organically is transform set alone your does tease this albeit new does how acquire history of or profile in AI then with And brands, the changes can Is you're you. and some brands new the

dater improving phone we some through and team personally think The are part way conversation?" inspiring total is I can I'll aligned last that our up a AI, experience in help question. need had our first of daters the as like for Look, our getting transformative of step with about months couple AI experience that unstuck they'll around our And be of We're they sometimes category. team about, dater of guess me it the an and like to Justin. I could the well been as Maybe take Great, apps. or AI. do that that utilizing open leadership by friend. the I "How experience And super thinking I thinking management then think our teams. is usually, a

is friend that available. sometimes, And not

ghosting still on pick instead, ideas, early, maybe some is the people like nudging It's dating. to help can conversation, can how a and not a really conversation how cases, conversation, someone but apps. that helping date out opening Imagine and AI transform up very this instantaneously focusing our in great to closing continue in team that

But I IRL replace do one AI utilize are thing can I not that can help connections we we is to the our get True believe world. that that do core real together AI people human and clarify in want think to dating. business, that to

the to or really too we're really working new in new you we have exciting excited decisions build, upcoming partner, on make great We're either team, it's more our to quarters. updates but We embracing CTO, to we we some a to And ideas. we present all say. around early and have buy including this, still

couple is just going expenses, it just one, what we AI very efforts a from things. the expensive. on terms those terms And of to of up can in early are going I Yes. happen AI undertake some of to kind efforts areas be needed. we're and point of would Obviously, these kind because of out folks exactly that needed to to expenses, be mindful picking in of say that don't what of know is

smart more and we'll want And way. of up. sure can. more vendors, do so those a I'm leverage try this parties are And in outside Certainly, crop going third wherever to we to we to

really on efforts result that. a focused a So as expenses we're massive balloon team build not planning to these and of

at already available certainly area costly, a those of us so good expand that Korea, like this capabilities. Tinder you are tell at these more those of engineers in we platform leverage And readily and a Hyperconnect, place Hyperconnect, efforts. gives also capabilities that where will much well significant much have some can I as types in to less we as

under have so questions. And we'll the capabilities the one We probably we control as time Hyperconnect like or build parties either more trying AI we're two the expenses outside already keep business. leverage efforts, we the or for and out to mindful of have very

Sorry, operator. ahead go

Thank you.

go question from Erickson Brad next comes Our ahead. with Please RBC.

Yes. Thanks.

here. follow-ups of couple a Just

the for decided had largely, these I features at not company to pursue had think really geared them. and historically, looked guess, of some women I

efforts changed? about thesis products kind but to that, speak earlier, reinforce missed those there. these penetration payer what's Tinder cash early it from think data just And from the guess any do free just overall? relative on quickly to on how I then to And of guide. might the So you flow testing I Maybe have

was EBITDA. or versus step a that the little bigger I revenue down think

maybe So forward? going of to sort relative that's conversion driving that? general comments just there EBITDA on Any to cash anything out free Thanks. call

that, important. Look, don't It's dating to obviously little and I Why relatively and Sure. take and and try been to that maybe retain quickly. the women, think important always a experience, women's retain do and attract attract helps I'll confusion there's experience I front things. apps and two center on very around Women's on men. has

we've and like so making aspect first That's the focused little that very always been a experience. women different the on of move And things than that.

women really that and Are want we're fundamental about. critical find? treated And really they Those is we're respectfully? talking women app. the apps. the of are about to their the on finding dating experience that are the things they talking focused What experience people Are to on what enjoying they that's on really the

levels And or So it's That's seek making here But a not there. particular, we're women come back really evolve. body to multiple quarters. feature experience It's something not of won't a a enjoy women's not to revenue improving associated and for experience. with some the there trying Tinder, one out, large be just that's talking say not of work payers' the be going over and to thing. what in we're that and at thing particular. in that's revenue about It's

your free we flow, cash of and of on more cash terms In becoming a more question taxpayer. are

have will that approximately year, that do going underestimated. over might something people time. we're So increase $XXX million number I be this and do But think to think I that generate

amount So our allocation cash policy. of there's significant flow a factors into free generation, which capital

Thanks. it. Got

Sure.

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

app the And the the remarks, on a prepared cetera? touched thoughts the bit et could impact be like to stores potential your hoping Epic you you. could of think in Apple's what on concessions just UK, early you and developments Thank Google Match? your the around appeals you in but expand some Gary,

an answer I'll and me It's can. it, question, for but you they one like left best Cory, to the important do that minute I

But the a a than on areas any different ultimately, Store turn fair Court these get been in of in make developments. positive over App us slowly are the the like. to first places. we're a admit expression to to changes progress in process, jurisdictions. in six in and lot be the slower meaningful lot and the as be think there's last lot reason. point legislative on developments different months ecosystem a them for there's going an that look, wheels There's in justice going systems where So We'll The of terms consumers. stuff of of would we App to There's to of going more there's Store of a benefit a that to the stuff lot to going

conversion satisfaction. going been likely various in we the things at to make be will on as So also and it able systems that which in other Epic will, result improved you we There's really customers, alternative developers things a in enhance that well think minimum, as also CMA think mentioned customer UK, Apple. decision to offer payment markets

a So in Europe we we're result the as as particularly in to store are in looking EU and EU like other changes be going well, result think of app forward in to going changes DMA XXXX. the there's India, that that. some or In jurisdictions fee in the to

to seen are don't I people fee App Apple to to result one to Store it's ultimately to be specifically going possible. think App that's I know if fee but case big relief, a that's generally this very monitor, in aware is remains of. which Epic lead Store if going It So relief.

things going Or and and one you and these different themselves are going changes respond in in are a different that's ecosystem concerns a addresses on in to to different remains is reflect going piecemeal for these think changes these significant they App factor of it a ask consumers? structures what seen. Store then have be basis of jurisdictions, all fee policies that markets? App to policies when the all really to which what valid have and they more And in And all fair question, to Store App so these change all is different have Stores means to this I and policy approaches sort with global and

that pieces that. it closely. follow you're know But out next know I of moving I probably a trying the think keep I plays on it. need over months, XX so lot there's and watching we to to

And update continue we'll really that so it. efforts quick your one. appreciate do I in regard. on And one to Take more

[Thomas last from Delaney] with will go ahead. Stifel. comes Please The question

just a Yes. taking that one the little Thanks new have you it possible app I for Is my on bit launching to more question. this get quickly. summer? guys are color

that take can question. I

planned it a later we're big looking then. I'm forward personally really announcement this for excited about have really month, and telling about We to everyone it.

all to time. to really everyone's So can everyone that I one. say call that that's want appreciate thank I our But this on for and end and joining close out,

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

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