Match (MTCH) 2 Aug 232023 Q2 Earnings call transcript

Good day, and welcome to the Match Group Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [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.

good and operator, you, morning, everyone. Thank

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

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

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

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

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

look to firm I'm numbers to we're even in first this half As on now we the to going undertaken place. quarter. the lead the this the have of a efforts more by I believer year, back in we've teams motivated that and discuss today I'm record

the length become I've all undergone. stronger Through and our management, gelled I changes believe together. we've at about teams have the have spoken change well

intelligent, is right We believe I gelling However, deliver. to have and our teams enough. challenge goals must and well that need Leaders be and also people them. determined the not around to inspire

and to efforts. most grit. ingredient key roadmap evident make is marketing, budding organization an been our important we our and to have all ingredients meetings, apparent in that we the those AI product has have It's good, but teams execution, Grit also team that make great,

buzzing with excitement too. are Our and I teams am

enjoy come yet connections, the I real who to we our achieve if great, of get make still There try need many services are there numbers new their and goals and have am will in out certain we life, our many to our turnaround. our we apps. who helping beginning more dating that and single our just experience. executing back innovating, are keep are of at people members to our Although

where are problems team are product teams a showing. members The in and forging the is on solving the are work collaborating, ahead. year initiatives, our different hard L.A. office executing it clearly energy The roadmaps and completely are many was office, ago. and People back than Tinder of in located results marketing their their

We people and have are to marketing differently. product momentum about think starting Tinder and

and campaign by Our marketing user is we optimization, sign as new overall impact roadmap is results now our Tinder having brand it on consideration year was The with Tinder core importantly, intent. and show. not impressive increasing showed but experiences on delivered "It and one right as sexiest the Starts a ups new Swipe" you was most an last reactivations at delivering; our it and the

are design younger coming We and exciting more an to make a of We're want experience to preparing relevant, product enjoyable for the months. app true and focused experience Our relatable refresh and marketing. Tinder fun, innovations by teams in relentlessly members. great be demographic. special also our the what while it sure Tinder elevating more the amplified stays on making the These to be to will modern makes

of getting and we're we about started. Tinder future excited are believe We the just

them new XX the at three expected, taking also as we're to leading fire and to Hinge and most countries. applying driving continues top growth. now on is while growth. from users our Hinge a dating cylinders, other And growing downloaded Hinge maximize and to all exceptional user in brands revenue learnings app we're

new midst AI-enabled to Hakuna ready increased for matching for the and creators a businesses to lead has to better is Asia by are pivot Our solidly Japan, trends momentum the will a and experience correcting time we're in course on TV user been driven now. out deliver in content ever. improve roll We Azar's of category. audiences, which will unlock revenue this the believe algorithm, help believe we for channel ads engagement first for their In users.

Emerging now and Evergreen the platform, teams more and effectively. & that on key brands the putting new unified innovation, sharing have on The savings. teams speed efficiency, innovating are to lead learnings products also to so Our should which features same are market improved cost

app launched has New bisexual community teams this for needs year. and and which The speaks and of excited flourish. end to dating just see I'm brought One a the directly built really in and proud gay, life. is and to planned to the that nationally we're now beautiful it by to is team of queer roll York social-first the our men, the app is City of Archer Archer, it out of live

our and technology point concern about and it at Gary, the generative areas industries This better a and and outlined few I dates stay AI matches It's thoughtfully tools it talk to to unique over Last before ultimately already, for as tech innovate enthusiasm every needs we'd it's is lead imperative but we're but to and considerations. enhance to remiss tremendous, features life. be that requires hand I've authenticity, trust, relevant. not approaching dating very company to created large. in innovation and real respect, of

enjoyable. a year, the and and and initiatives eliminate I journey use awkwardness, surprise launched generative highest on make the in engaging, AI correctly, number way drive all and to can standards. and delight users, have technology more dating end ethical expect and the focuses privacy and will rewarding make that a of also we curiosity fun is when of to believe this By more dating really applied the that authenticity maintaining

our with remain speed possible innovation ahead energized, the It's best Match about and experience. committed good really and future. full and we're dating our to We providing users at feeling Group, motivated,

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

joining morning. and BK, you for Thank everyone. this Thanks, hello, us

in mid-XXXX. Tinder really CEO particular, to focused in a deliver us marketing believe at became profitability, firmly of momentum for well plus performance performance result financial operating and results. at product there financial dramatically company free the across when financial Hinge continued in Our the In improved thoughtful implemented strong started we have and flow. and strategy cash of the growth, BK terms position the QX as adjustments the future initiatives and discipline We

earnings year-over-year $XXX $X basis. an at been X% for FX QX total Match represented revenue notable year-over-year. Total for Group's Match of severe headwind Group. more FX-neutral million, record the a Group This our was Match and would was up revenue on we $XXX X% up revenue quarterly than once total again for million, time have last call. anticipated million

year-over-year $XXX from FX neutral. while X% year-over-year which was X% was RPP XX.X basis, On our direct were year-over-year, down $XX.XX, FX-neutral year-over-year RPP to is driven QX million, revenue, up earn revenue payers we QX an a million. This XX% by directly was company-wide. in to X% up total users, improvement XX%

price the as million, U.S. delivered. weekly saw expectations year-over-year momentum RPP and was at optimizations up neutral. in direct from optimizations outperformed Tinder packages. year-over-year weekly revenue in and XX% up was subscriptions X% over FX price U.S. $XXX due to X% the the $XX.XX Tinder quarter we our the QX Tinder revenue at up

there payers revenue direct declined revenue optimizations U.S. subscription year-over-year June led largely momentum Tinder reaching with Australia, to conversion prices QX year-over-year. in pricing price X% growth largely leave Japan in U.K., QX, there. optimized, After in solid Tinder the sequentially, and unchanged EU, throughout opted testing changes in to pricing the out markets roll Canada, did the as declines. X% saw already year-over-year, as XXX,XXX were weekly those the Tinder packages but

well. Starts the U.S. trends saw aimed in The in at key improved Tinder's reactivation the user a with of we Many younger and markets further launch other the females initiatives in the campaign are as and and "It new Tinder's lift saw among focused also strengthening pronounced marketing top-of-funnel Swipe", Tinder geographies following demos. upcoming around quarter the lifts world. has been new of users, in

while very strongly. XX% speaking revenue Our Hinge was continues year-over-year, of year-over-year and point X strong year-over-year over markets nearly its XX% experienced expansion were Hinge RPP leading XX% grew an core nearly $XX over user markets, QX. both in to brand growth. English European in acceleration up direct at over up to growth X.X year-over-year download Hinge million, QX. payers Hinge perform X%

a saw revenue in Our neutral. Direct improvement up MG revenue X% QX. was direct Asia in from vast decline FX year-over-year decline double-digit QX, year-over-year X% business

AI-driven At seasonal stronger-than-expected Hyperconnect, Azar algorithm grew led and implementation new meaningful as QX. matching some to conversion. increases direct in engagement a revenue of XX% saw year-over-year also trends Azar in

declines While bright been has in QX. Pairs year-over-year Hakuna real growth. subpar to market revenue user direct Japanese experience The continues and Azar saw spot, a

able on Although to start we're trends. could optimistic to fall TV improve this being that market

direct The Chispa revenue improvement Emerging declined X% year-over-year, which and Emerging, continue also year-over-year. to BLK, grow & to revenue Evergreen compared a including brands, QX. At direct strongly notable was

as Indirect with prices X% revenue year-over-year, in declined $XX million but total, per impression down ad year-over-year. consistent was QX, QX's

Operating margin company. ever. was across income XX%. operating achieve of exceeding AOI first above XX%. for in QX the up expectations, income, and or time was margins we continued million QX million, outperformed as and $XXX savings AOI, year-over-year, was were of X% $XXX our $XXX a It margin a cost for the million representing to QX adjusted Tinder

year-over-year the Overall up of incurred severance We were quarter. expense, intangibles. similar depreciation costs QX, $X X% SBC amortization/impairment approximately in in of expenses, and excluding million including and

$X XX% $X of fees year-over-year. grew million increased and approximately of flat including July. Cost including million in represented the made to payment expense, $XX Store last The million was escrow Google. payment required revenue, of year-over-year, SBC X% year-over-year total App revenue, escrow

spend to expense, percentage by spend expand Selling total X% Selling and XX%. at due multiple marketing marketing brands. to other increased spending it and and at Tinder flat internationally, costs, as revenue a including $XX as was or Hinge year-over-year, at million offset continued increased of lower SBC primarily at

declined as of SBC a professional fees as X percentage dropped point revenue G&A costs, legal including declined. XX% expense, to year-over-year total X% and and

of product these capitalizing QX SBC primarily expense, Reduction mostly helped X% compensation year-over-year, Tinder Product a Hinge, were total grew including development expenses and in lower quarter, and development as costs Emerging flat at our percent the in and than higher in quarter. at XX%. costs, brands, of and in Tinder result more the at a force revenue as prior-year

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

short-term cash, investments quarter of the hand. $XXX million and equivalents, ended We on cash with

Our the times. less gross and X times X.X at AOI target our trailing end net was X.X below leverage of leverage QX, was than of times

at repurchased a $XX our May shares implemented X an approximately totaling buying in utilized billion share of We June of approximately portion recently which million, small back common months price due the of buy call, after $XX began closed. earnings program. average we $X after We share, buyback and million as shares the able in weren't up, the shares the last over but had three stock to the we many open our intended window occurred window as to which strong past had run price back per

after our revisit this of policy. will allocation again updated capital We mindful buybacks call,

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

particularly significant QX, We U.S. to growth in acceleration expect weekly at RPP of optimizations to Tinder QX and packages. due a compared year-over-year price the

FX QX. to tailwind expect X less in year-over-year be We than a point

we in FX expect a with year-over-year, growth be revenue confidence direct a quarter This would growth gives Tinder, direct At to up year-over-year The than slightly Tinder building us our of at in solidly XX% year-over-year to ahead X QX. expected level revenue tailwind. pace. double-digit of point more be achieving momentum close

the sequentially year-over-year digits This sequential in to the Tinder of in in expect price additions increases and mid-single than QX We that We been decline and decision effects QX, we pricing several be anticipating, down had not markets. packages weekly but U.S. better than to QX. in subscription by absent globally. due to part payer to is positive, would optimizations international estimate implement be less payers

being new still U.S. The decline fact desired as as well payer below the levels, to base. also still through that pricing year-over-year rolling Tinder's is payer due are user the changes trends

payer We remain months, user order the While believe and marketing growth on in revenue on better returning we to user regard. that and trends right we the product to are through few in growth. past notably focused have initiatives this over improved strongly track drive

to Note off. packages declines subscription bumps as lead that conversion duration increases, packages pricing then creates payers changes numbers. and these volatility when shorter in short-term when our introduced weekly roll payer Weekly

especially we quarters, even to long-term shorter benefits out. bring users and confident and meaningful these as among packages are expect the such accretive Over other conversion, revenue increasing younger that We're coming this females.

momentum initiatives. deliver various Hinge million in revenue that monetization deliver will in meaningfully markets, year-over-year direct lead continued XXXX. We approximately accelerating in by expansion, and direct We expect English performance growth continued QX, it European to $XXX confident again remain Hinge's driven speaking of revenue strong to

to be direct We Group QX. flat year-over-year in Asia Match close to expect revenue

revenue QX. improvement growth year-over-year modest direct change for Hyperconnect Pairs in and expect for to QX We rates compared in limited

brands Emerging brands. decline declines Evergreen at with Emerging year-over-year QX, We the moderating strong continued low-single expect and our at & the brands direct Evergreen to digits revenue growth in

We market year-over-year we modestly broaden opportunities expect across and QX in indirect to sales to QX up improvement ad see our revenue some begin be to ad in continue platform. the overall we as

of $XXX of AOI million representing of of the expect XX% growth midpoint We to XX% XX% and in ranges. year-over-year million to $XXX QX, at margin the

and of revenue up marketing our League. We by QX increase at of to overall spend apps, The We'll and as including as percentage newer Archer to about be in Tinder Hinge expect a some points well spending total year-over-year X growth as compared QX.

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

on to all We expect to continue be categories our in control. other within spending cautious

We expect severance $X of to QX. in incur and similar approximately costs million

XXXX, Tinder's very revenue growth deliver and Match better on AOI is to reaccelerate overall. in remain year X% as X% achieve full we than continues to pace did and Group XXXX, top-line to margins we cost disciplined For

We're business implemented, confident months. that few taken more the levels strong us approach momentum by consistent over setting up past at the seen are of profitability. for the We're the in we've changes growth and strategies made, top-line we've we've excited we've

the right and look is the our forward we with stakeholders trends stronger more our recognize in payer growth Tinder, user pleased quarters. on focus. the do, in to at is company to especially there progress, the sustained delivering to in are continuing is direction with where updates confident revenue we We're squarely performance and provide and While headed coming our

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

you. Thank

Carpenter We [Operator the Our JPMorgan. with begin go will session. Cory now Please question-and-answer first ahead. question Instructions] comes from

the for thanks Hey, question.

international Tinder I on think you the that expand raise year? expect to payers an of saw in half not you you And it that just Thank you then, to have markets? quantify on big to in and testing for second what Gary, could on impact of way help prices the led any you. how specifically Tinder RPP

that the teams took and pricing that the our of points new to pricing is extensively Cory, this globally. I'll can of optimizations. Gary of around to take really What we providing decisions second the question. we of rollouts wanted asked part question BK. then price the led to go do we the marketplace. part was first are the kind Tinder, When test live in take understand the and team over were that This member value micro management versus

States. that and we Australia, did United see So, pricing our the Canada, the test Japan, not U.K., and revenue EU we the benefits in saw did in we

The some U.S. room where reality actually wasn't hadn't there in markets. international his Gary this due prices of quite priced Part were these time, that was much were is as for so like versus comments. adjusted that for in the optimization competitively, already to mentioned we markets the

higher So, were were price I think our versus points where in the internationally. we that generally U.S. already

entire in An quarter example pricing were I this the this before in international where We stay priced Gary? at tested one-month Gold the is, throughout decision give pricing, subscription, U.S., were on parity to we can the actually U.K. after from in making put optimizations, markets.

Yes.

you've they're been little subscription optimization, rolling and try different that's been out introduced there's got going variability a So, the introduced by weekly unpack bit, on for times. by to variability payers, at price lot to Cory, packages, you've that's on going the a it there and got because you I'm

the from ones, First, the effects from we have and the international then ones. U.S.

of So, there's a numbers. lot movement the in

market. the in of Obviously, call chatted happened to we they they're we changes last is we've slowly roll earnings the since would in the also changes U.S. been are the result meaningfully better out deciding and than that what's better international not that. time done as a they more But the on markets, out pricing price an rolled have had

It's changes affecting into QX the now, so, some effects QX QX likely payers to that's show continue those to to the U.S. And have in as right and pricing base. payer lingering we numbers. slowly going

the of mentioned internationally. kind weekly little around than -- around one -- pricing to a that's happening but course, more thing then obviously not expected, payer changes that we that's we that's test and slowly thing been and So we you the change think bit right initially introduced do. And adjust the the having the of

into through different quarters. And going down quarter roll what to will we has coming resulted QX, changes So into from changes, trends the meaningfully are of to payer get the there's be normal through going lot in have that overall, as are more through be once saw year largely pressures on sequential and I we think subscription here. which price will around XXX,XXX. over this XXXX, think that third corner control, will than I all packages introducing turn much we of which the weekly our It additions. cadence burned was in continue a these the do a overall and better noise

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

It have we move should Jason. the we sound Jason, like doesn't Operator, maybe next to you are one. there?

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

Thank very you much. Great.

the increase? do RPP So, is Tinder, And base Gary, for year? what being the price in see the much Thanks. by how and you user of now more staying impacted pricing headroom the rest percentage on QX topic of the of in

period which is again, you so understand, for I higher back prices roughly higher then see they know, base of and paid and when And come see the become until higher you our they or And of they now happens U.S. approach is higher estimate payers then don't that off are XX% payer the just off time. this around So, churn frequently, as a that pay prices. the would prices paying the Tinder payer.

So, to which roll taking through we and taken, fair the it's the payer think is the that's why base. is we've this to approach time for U.S. consumer

From an of revenue expect Tinder the you in QX, at significant drive course in in which QX Tinder. and to and year-over-year is QX think QX. then RPP accelerating see lift And RPP should perspective, RPP at we well saw to increases as XX% QX the going acceleration I over in into

are significant as well. having weekly subscription meaningfully. RPP adjusting a contribution The pretty packages in We are prices

that's the performance So at and big of driver for of a this quarter quarters. performance revenue couple overall and the Tinder next

very helpful. That's Gary. Thanks,

Sure.

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

for you you Thank new Could taking to expect how my the on Tinder launching refreshed double-click excited questions. platform? month? this engagement an to at is term? features new core And medium experience about drive either the that on a that Tinder and/or features you related please could are these other later in then monetization potentially that you. near what Thank new the you're And on some note, at have Great. impact

the Alexandra, question. for Thanks,

actually I similar. you the and it if look that felt really today, the tried ago, similar was Los in Angeles pretty I launched it's ago. to I tried XX product app about years and today XX at So, years the was Tinder app when

the teams and product experience. more Tinder what I've alive, So, I've is and challenged through potential an to of overall feel the refresh vibrant like going done make

experience ways and look into and is with profiles to Z depth able more from actually from users that keep users. to feedback were testing to intact. Gen teams core creatively younger also the at direct member our This our core coming is extensive What do bring and

experience will this drive and more platform conversations. more will and a on the lead which success modern engagement, and have to feel look I think more

People identity come a is experience, profiles. Tinder's is it. balancing swipe to The here. and there and people in for critical act love But swipe

I new members we've of have delivers make great So, with nailed that with we generation to that it. resonates the meaningful users. want that experience that a that engage experience sure believe swipe more UX in we're sure so make I ways, new really to balancing And a

and of I we'll design that months. feel our over product positive have the the be about rolling done next that couple together, really teams work and

with ahead. next question Please Mario go comes Barclays. Our from Lu

Great. Thanks question. for taking the

terms So, Tinder a in half follow-up similar features. the of second

as the shareholder Gen Z capabilities. in as will mentioned You focused letter, on well AI it be

you're expand Tinder wondering also, the could engagement drive roadmap? just these no if is a Coin more will So, then Thanks. and does you on that bit in features that confident longer And this monetization. why imply

for question. Mario, the Thanks,

for the in Our of was first could structured Tinder focus and us the delivery roadmap wins way build a and that on designed could momentum that throughout we drive us for the We're year in real year. the we what weekly think out and freedom and of successful in subscriptions, pricing that has built entire momentum for that half rolling the about and year. to second deliver half optimizations really creatively

is what premium we our like initiatives testing in and excited value out experience. So, actually that process earlier product Tinder that the I'm still year, iterative of also of launch currently the half members. for really about to an figure some on I it's our we're proposition refresh great the the of the and the have Coins second mentioned roadmap, the and best

So, now, we see contributing we're to XXXX right it testing revenue. don't it but

the all think seeing make And and when I the the think roadmap, will decisions. enthusiasm of over the sooner. with But other and made I generative initiatives our to excitement across features I AI members generative I've that to we're prioritize to like call Tinder different value the our prioritization of teams, deliver advent AI have that Coins. about with And initiatives on generally

the Thanks question. for

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

guess taking two-parter, Thanks I Good of morning, there. a a Great. it and for piece highlighted BK it's everyone. the questions.

just ask like so, more. the I'd about bit little Tinder a -- And premium Super to tier

fall. this it the So, in you're rolling out U.S.

for can it the been power be? on Is or that the part, say, second early that impactful, be Or to in just how a give a the product that far? whales, global like is product sounds small on too so-called it then like on basis? so to any potential the of color you're Thanks. out let's any number will impactful subscription And users they've the that going thoughts you Just the us weekly -- rolling U.S., be material?

question, for concept general better a We've and Dan. members. The high-quality small of way actually basically sooner value the the and give make a proposition Tinder members we get for this providing an the today, to And are Thanks is real experience with is testing our these percentage overall seeing of been experience benefits. fun. our components matches multiple experience faster more and even actually we're members that

these So I'm excited really personally testing results. about

now, It's a what get really early of final level, points, small so don't millions high a the payers we higher know fraction tens of annual right actually pricing you on if number our is an at dollars at of yet. But the take actually that's price a basis. in you

I So experience of a small drive a high impactful. lot I pretty have area in, that of an segment amount where is that's of This monetization. think actually a users

this us. as a see So, I real opportunity for

Very helpful. Thanks, BK.

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

off table have I as we an improved look early, a for I there? XXXX? But on payer positive net Tinder we should for Tinder trends the you. hear forward the pair we And payer to from be growth how balance additions RPP be sequential international and it's to pricing know U.S. about sort you disruption to the I and time the questions. about for the end, when trends. Thank should curious growth thinking fourth payer mean, from weekly pricing your outlook packages, conversion quarter. I'd but between of coming seemingly anticipate with my thanks for follow-up now taking Hi, that with being

first largely to I RPP. Ben, way So, of that the about think the about increasing rest all, year of is think is 'XX, the

in QX. mentioned expecting increase then acceleration the saw dramatic packages weekly because We're optimizations. QX and I we and greater into increase a As the continued in earlier, even of price QX,

quarters. of base, a that the terms declines these payer through things expect of in mid-single playing next On year-over-year all payer of payers, and the the for I we're something digits continue couple seeing side, to that's the result as in

part Obviously, of of decisions drivers what of the And and the there's growth. around a course, that. pricing making few user on seeing we're it, is that. other is subscriptions different we're new And weekly part of

point growth user not that so, And but the see it at, we'd new that and to up driving is but yet further. it's like we're stronger, to further getting

that we with initiatives And doing so, continue marketing with initiatives. and product

improved that think positive, as able payers turns we'll as drive more growth year-over-year be I to well.

lot well XXXX, next expect the about the we doing year from more a mentioned around we're should off. So, weekly answer, then, revenue, see balanced from from earlier as this I packages around increases impact of have payer volatility as we in an rolled a and revenue payer initiatives to think as year subscription pricing And as per increases.

But product would roll what caution depend that it we really on a does I out from standpoint.

clearly driver play. we're a to play, premium per payer specifically payer performance, that roll of example, not we're and the to going a intending for a this out is roll -- So, revenue be out new tier late year. XXXX will That

of to some the kind have at make product we So, determinations. roadmap what look is to

XXXX. roadmap for It's whole the for to of too early through product us go kind

that top-of-funnel, made after which this drive RPP we've to is keep clearly have stronger on next year year enable and on. like and more we squarely a more year. of us will we're overall We help I would contribution We're an want to again, RPP by strong growth will of provide our Tinder balanced But see, targeting payer upcoming that's payers of year-over-year all more what story. we in encouraged drive color quarters. revenue to something the to progress next being and on growth the And eyes improving,

questions. hope I helps that your answer

It you. does. Thank

Okay. Great.

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

And launch of sub-tier some the key kind seen drivers the you. could of XQ -- and color but Great. early, continuing have more Thanks. you Hinge? on at you seen it's acceleration Thank provide the in have think weekly what Hinge, then, you I On what just into new revenue with XQ?

John. question, the for Thanks

we're course what we of on what through for QX of leading going we're layering quarter. said, to is the as and recent acceleration revenue it QX, things of kind we've other that the business the and the three in So, acceleration, there's see in saw growth direct Hinge rest -- to in And year. really expecting QX that most you and that top really revenue of each are already on the seen in are

The user English-speaking first is very in core growth strong continued markets.

of as Continental a markets, user third the rolled as growth Europe. that is tiers European monetization English-speaking particularly in markets about new including this continuing the rolled growth we revenue second we've of well Continental variety are out result expansion earlier initiatives the The as talked is in the those And new we've out, the markets. into from And subscription drive that that to core before an year. base user expanding a

that's effect growth why business, as this see of with point. fairly is compounding we Hinge visibility forward that good and proceed at So, you into the the this revenue

The asked was weekly thing about that other subscription packages. you

So as saw out them in the We the smaller we know, those with there. year. across haven't this course success across our the of rolled you success obviously as rolling a couple well. brands. out number years. We seen real Tinder. them of brands of portfolio to been over We had prior real started We've We've a there

but something from Hinge to and them at the at makes to for as similar as we've learnings those successfully what Hinge rolled it Hinge. do decided And impact for we're planning them seen we out that well. roll weeks brands. at and wasn't the other seeing subscription three-or-so sense year, as basically that on last weekly well. We've were over so, knowledge that specifically this It And to use us we

but brand, So, improving slightly it's rates. conversion, always at renewal general, different improving we're in each seeing

which for and hit revenue. confidence revenue rates And for us growth what we'll in will to approximately XX% that what that XXXX, get of is to we're Hinge accelerate million continuing are $XXX -- that's we so, us around And QX. doing to saw see giving revenue growth year-over-year going direct QX QX in from

weekly all an Hinge packages. from extra with improvement jolt So, systems at go of subscription the

you. Thank

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

question. taking for you Thank my

question high-level you, for BK, a Just on AI.

businesses Tinder and little Hinge? impact and already prepared it more letter. or bottom-line as technology how particular? AI-enabled on those in in as you of you. that could where So, you're touched concrete a you for two Could And think at Thank the you top- provide leveraging in remarks your examples bit well context

Thanks, Shweta, our ways for company really moment points. create we to really people has has dating, across AI our technologists and company, the I question. Group. experiences, really about think new pain Match but also inspired kind solve been entire a can that product This of that key for call, exciting for what

kind have over delivering I've energy great solve around what data organization these like problems. next the couple some of that as against products So, months we that of harnessed the an and of that

example. an as Tinder use I'll So,

jump or people to get in They really generally then, the App nervous have "What five off Sometimes pictures, uncomfortable, upload experience. you the exact Store. excited great?" like, that into are Tinder picture right profile the that downloaded process where out people my And moment apps So make for those not sometimes the are of people dating over me." is I've "Maybe dating just to taken last to turn year the and literally say,

to selection the take create. still the think photos authentic for feature photo can your out profile and are actually that stress five that can creating AI, our really at a in I say, these profile," like your album the AI away, and use we're that remaining that do marketplace. profiles also personalities best but We really efficient Tinder stand can testing that out users their look photo and a build to and "Okay, we're in more showcase that better help want they way that the person could

teams of engineers think example great then multiple that Match could An on AI teams our a on the in would Meetic, we are together Hyperconnect AI lot is ideas. benefit like, brands I we've really could across of like When collaborating on internally, are where that exciting working Fish, I excellence coming have portfolio. and centers working and to Tinder. And and raising is on it some AI be are of work comes of AI features for want for OkCupid. -- hey, created these features that features actually use E&E, Plenty But saying, to hand the kind I their organization, different

months. So testing, we're and in the concepts lot coming ideas and out there's to that these creative a roll we of features currently plan

time, thought the that have can users, and we right like really giving making thoughtful We experience same impact on really we're a big really ethical the But this to know opportunity a to concerns. that at sure authenticity business. and their meaningful have our be is and privacy that about

out features. all those doing we're So, we as roll different these things

question, Shweta. for the Thanks

Thanks, BK.

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

XXXX and Thank could update that very think the to of an you did increase on times QX X% about the should you side, within get XX% range? there? of increase rates your improve revenue thinking land growth on Great. margin and a you've just you. And outlook, versus that think you puts we Tinder AOI and much. language How provide XXXX. where curious, the takes to couple Thank Good on then that I'm to you'll morning. the Gary, Hinge. you alluded about magnitude

Sure.

we I the the my in So, growth of bottom X% that think XX%. X% year-over-year that Match revenue right the for to revenue X% kind for provided let outlook. outlook looking of within I to we me QX. unpack And remarks, the stated the to revenue year-over-year that the for range X% that X% provided above so we're growth now, and includes total Group, range

year-over-year to direct see kind the has the think similar solidly Tinder's going double-digit growth Tinder well that growth in further, the deliver pattern, If go to logical math rate deliver works better we a it's approximately out. is is QX, said double-digit, how been in of that's revenue to as solidly able acceleration in you QX deliver company than number is growth we overall general and and Tinder QX to the assume expected QX in If as so growth. XX% continued

then you if at they're for the that other if mid-single the is and in look so, rest accelerating year. growth businesses, the and have the is have accelerating through layer then down our Hinge, digits we And QX from QX. expectation which you And XX% Tinder of the you

improvement And double-digit bit improvement. QX little path you've might of a bit for a X% we together, you got full X% for for think the the to that to gets boil that of components in the company Certainly, all growth then little and the overall there's there. I year. see So, a I think you when

those tells this good the we're where you would say all improve, and obviously and which see. our the think to of continues that pieces I are very going. all And So, to clarity confidence is I in

And then, growth. from Tinder an of AOI margin perspective, the driver or magnitude really is the level the

As that it's it grow, revenue, company's continues obviously is helping the to overall margin. and AOI high-margin

basis, year XXXX. points So, what improvement margin will obviously, a at see over we the But to path XX businesses today, as be by that of and the basis year-over-year on progresses. other could least some do rest sitting Tinder a XXXX of here impacted the of

of will see also obviously, And at effects make levels then, terms to but have decisions growth marketing of we helping. doing what user of it's Tinder and marketing its it's in we the spend perspective, as some from all a

we're year, level well is XXXX. want to most businesses off So, it a will it's dollars back And marketing strong spend those important see year, in us make to give to we're us next which into and into of our and the help then, apps possible year, up that the like right League, The newer the of hoping the the half going quarter to for strength. into momentum we spend as to Archer if of take sense like those set QX

the have We've more like coming challenging made and early growth the we goings payer see talked which revenue much before, of we'd XXXX. momentum to in didn't into XXXX,

like into set growth well sure up XXXX. we'd accelerating to to drive make we're revenue So,

are organic the XXXX that it into marketing us want very I spend, extent But as we can think well. we trends good. with give to to momentum we supplement will the the obviously do

helps AOI that through you think you on the as Hopefully, on revenue. trends and

you. Thank

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

Lauren. Feather for Hey, you've Nathan on got

the are lead the one continuing AOI what So, result, kind two income in or upside impressive given operating Thanks. to drivers trends back XQ which the further of half? the and key AOI could on

So, are three call, and the we're think the mean, what a to expecting, specifically revenue dramatic as I level of versus better going just pretty the last initiatives the I across were We've I because months initiatives working mentioned what than is acceleration we really biggest seen on Tinder. -- the over get growth at the last company we variable thought.

that to about continues through have and, at proceed we revenue across Tinder seen trajectory the we're to dramatic But obviously, better improvements, everywhere. company So, we've feeling year. growth frankly, where the it's and pretty see better how the much

variable. the think, I biggest that's, So

on then the primarily. it other the side of is spend, And marketing

terms to of muted, our going the know I App think what we're be. going is everything you else are fees what in is hiring do; pretty Store to pretty known

figure benefits the make from out try we to very we're of is the investment calibrate to see variable from that's -- And year. marketing businesses focus marketing level control. we're marketing for biggest we and within of the It's But the this growth entirely spend additional in the to beyond, so, obviously end various what spend. derived doing in on the being our to growth the want and going businesses, the XXXX towards

QX in be to thrilled nice giving we'll some to happy that more on going what choices color That's next we're happen us see the to really now. to make, Obviously, is position we and in provide outperformance. lots very we're think on our But call. right

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

about would Japan. focused more love in questions. Malgosia bit to team seeing I reaccelerate I for to that any Are little things a is there's else Thanks hear growth are the like sounds that in you're there specifically? market and APAC what mean, campaign but the it planned. if just Thanks. payers motion, the has in brand on that anything curious team a

excited us the Thanks, that do Pairs. challenging us. can James. What the has in new we right overseeing we're CEO put team has is remained and really joined is for Great question. about market The and place, Japanese

he's the instituting fantastic hit product I the running, job. running be then ground in business. do In the meeting the that think think going ground impactful is Malgosia really has to on and teams changes with tandem that with different marketplace. all really she really great I a it's will And the that,

could TV in in term all on exploring advertise for the is for really right options are about actually the the that we're you're And business marketing We to Japan. we're that to to really second So, can time Pairs Japan. the short time. first this first in what that jumpstart that saying the is we're with channel really campaign different available able being meaningful. the be we the believe on ready, that unlock excited But in do we about television be excited that,

question. Thanks the for

Thank you.

Our Fitzgerald next Please Wells from Fargo. question with Brian comes go ahead.

strength Thanks. the that if approaching On any of early perspective? from wanted specifics provide ask indications And Archer, any around product you're Thanks. a to you the rollout? on could marketing how we the fit? And market

proud gay York really live it Brian, comes indication experience happily an and to really It's daters still the been but are of When about that the days, team Thanks, for we're in it's creating market early. how right it's on performing, question. for daters. the only providing profiles the Archer now. We're New for XX

to plan we plan year. to by continues be out the this end roll Our of that nationwide

on had events When against. event that Island in the with influencers. a that marketing teams just the City, approach the the efforts social it are executing taken. comes to I'm marketing, creative inspired we're really by recently about really doing New has They're team and Fire big excited They York

the Thanks question. for

Thanks, BK.

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

for me same the in. have guess, back getting call I Mega at I Millions, should hit earnings played I'll time. lottery getting thanks both Hey, the

subs. Just a quick question on weekly

weekly less increases, And churn? was subs how carte already. outlook do And do then, à visibility Europe about And of la the it a carte? your is So, think la package churn? à more you you if mix that how around -- managing does if weekly increase more historically, like there's

that? how Thank Just -- about maybe are just you thinking broadly, you.

Sure.

that me take Let one.

as We data from subs trends important there, around around have and weekly First that much point longer-term don't us, like. Obviously, we're more subscriptions packages. new are it's have renewals. seeing and the much as of data especially we out still we're we'd monthly all, learning to to

newer, last time and get the more determine to better goes just get harder it months, it's harder to continue at it's right, manage, over better as the We've on. we you're data gotten we'll So, at to few it outlook. it's and

the we manage an per based important it's been have has to visibility And we better point We out been payer. It lot we from challenging to provide provide on where the that payer more or much, has much frankly, revenue outlook the impact don't has that revenue, on analyze. the weekly a revenue stable. based because, impact don't really our also been it outlook more and on count subs payers

revenue So, it. as because it we're the don't we're side. and that drivers best asking we RPP providing reality we outlook That's much at us look within about payers keep what people the can as we targeting. way the on is do revenue But on

there made short more time, complicated. get on come introduced right, things has more has It variability. they better. people I is And also you're think churn. it So, more do it for go a These will off.

are And renewal so, the are rates with who we're up, good seeing and users subscription that conversion really liking helping is weekly are younger especially the the it But strong, is the packages. rates news dynamic.

And so for that's a real the positive business.

that has a introduced now, there type is business demand process. this readjusting. I'd of all for We're point real subscription also, constantly of it. The and is dynamic new We've been a testing this package business. out And

need And testing. we to so, keep

in thing on growth in tell for is people be and a on. outlook the variables what But revenue were per system. It's that's so a The payer about payers is the better of is than main best of being lot the to with and through we themselves QX. sequentially of working things that There's these impact care right what payer say all accelerating. going I accelerating, our QX the are to certainty we're revenue focused terms can And around than of now, giving they QX. early is still lot kind

of some variability we of towards to end this reduced this And get is the be as year. going

much So we'll make And kind visibility more updates as from things of little standpoint. that clearer we can. will as bit a information a provide and

going we're new a the proxy is continue strength. is and growth I to which focused health metrics. ultimately and sign-ups very something year-over-year is And on to user in will is a do drive perspective new business. top-of-funnel in us those in drive the chart and in, XX% what us But more people discourage initiatives payers to for top-of-funnel to continue to indicates help metric the that those the registrations that that can over will from revenue. that convert payers, see bringing there to we're top-of-funnel strength we That critical, continue a or What clearly to of seeing and the the which should That's -- that, which we're product rate and that that's and overall from quarters, top-of-funnel letter, people as that see contribute improvement we're we're perspective. Obviously, we using reactivation. indicates drive coming marketing which going to would grow people to provided showing improvement ultimately from a help we're in and payers expecting

payers, that can revenue and impact The by not numbers decisions pricing the we we subscription, it make. If product make we enhancing. $X we but out would decisions rolled payer be might go up,

got drive think we've RPP. So, we drive business about to even adjust shareholders. for payers think for the overall specifically the how metric that a value like long-term to and consistently about or test and to And not way the revenue business, that's

Thank you.

Jason. helpful, that's Hopefully,

all much. we to again We next earnings so everyone are were Thank and thank call. able this And morning, you joining for call. on forward safe to the look you glad join talking we the you're and to

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