Match (MTCH) 1 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the Match Group Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded.

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

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

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

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

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

come our work to strong get for and another every me revenue because enabled morning, I a teams and record but love, people inspiration energized at has only work Tanny. total for thank in Group Thanks, Good AOI. I everyone, consecutive Match and day to not dedicated and connections. operating a That quarter happiness find call. QX, to highlighted of also inspires company second and human by helping of financial you joining quarter strong today's results

built Tinder for to to a that long, is to demonstrated marketing great product rebuilding Our businesses XXXX and bright come. our it's example in on momentum up the also not only me innovative year years this. objectives largely and but has with set for virality, so Tinder but drive initiatives momentum cannot of clear business forward it enjoyed have on setting in goals build also just important that continue current a lost was model the company not future. Tinder's but for how while is revenue

thus Tinder far, we made XXXX believe packages. and U.S. I growth at price with right initiatives decision weekly prioritizing subscription in deeply revenue Looking optimizations the at

Tinder's growth double-digit these expectations, that at payer volatility that of higher enabled Tinder's initial ahead have we're count, we're quarter created significantly actions resetting in pleased revenue payer base X short-term outcome essentially very has with. a we While an our recognize which rate

The growth that its reactivations We the ongoing a terms through and improve Tinder's It June centered of brand marketing user saw reignite of other of on success total initiatives With and great and result narrative. product as component strength is Starts Swipe campaign. in a sign-ups

campaign in female-focused However, summer, its and Tinder into late spend the more pulled messaging. heavily back on concentrated

see Tinder rappers marketing for younger proving of on also the continue this in remained good part down launched a did X campuses sign-ups trends not feature same user female featured pullback, new overall slightly the that as pullback, demographic. Tinder's progress well-known first Although of as years we called again critical college of with result and both the which began make Matchmaker time campaigns. their mid-October, in to a

are so the power lives music Z the We core we is because Gen of to work how of know into our excited users. it leverage to

nature the also that experience high-end for. seen deeply to but that that are resonates need users continue first-ever is we rolled tier, make to and out and September early the for that of our provides has SELECT, looking in interest, the exceptional an sure business value and it's Tinder such iterate they

build XXXX this Importantly, map, year. will off throughout from what road which its informing are accomplished we Tinder's to we've XXXX of learnings continue

products shorter-term primarily initially to subscriptions more payer payers launching we've à weekly for penetration. untapped that roughly very monetization portfolio. subscribers, future carte large XX% For of lower anticipated. revisiting price learned potential our la Therefore, carte than by an monetization exploring Tinder and a younger that The increase duration of example, our affinity are and we're had we have to opportunities generations from the serves is our la representing à reality

Also, These in markets international of for penetration expectations. real where we can it achieve to Tinder ahead opportunities has really Tinder's higher. Tinder ability growth push deal in a runway represent confidence great future believe long and that a give me

the to be collaboration, of and behalf Group continue amazed on across taking of across team portfolio, Match by entire I level daters globe. Looking the place innovation output the work

downloaded like top only to expansion important Not that, continues an brand in QX, in Through levels dating as prove when continues resonates, and all-time solidified a that U.K. #X make Hinge a European a high, Australia usage deeply itself markets Hinge massive and inroads things has great but in and becoming dating to the drove U.S. to its happen. several you X product the firmly have Hinge the app that good most app markets.

capabilities. All of With XXXX, well strong million double-digit ahead even more enabled its annual to on in and monetization Hinge brighter revenue way its this quarter growth ongoing target of we by initiatives an future another delivering $XXX growth. see led revenue

driven Asia, post marks Pairs, to user its At and our new matching rates, important extremely down revenue campaign, of launched coming drive to and improved double-digit in demonstration financial TV talent by a we best-in-class an Group breaking stigma Azar Match step to strength. Hyperconnect's unlocking continues growth At growth user algorithm, which life trends. AI-enabled first-ever

receptivity competitors. gay, initial our ahead how even them user to another far users our men, accelerating is it and key out learnings in strong improved effectively one Again, apply of for queer Archer rolled international drive in and thus we plans example our outcomes dating its on such given E&E, portfolio. September. of team is as and take for teams the and nationwide zeroes at Archer, bisexual first late its quarter full And app plans

the strength to our shareholder a over set innovation users' our the forward much the best ongoing look XXXX and and of about and time. provide our be improve company dating committed think We And experience. finish remain category. efforts I there We of users position is possible to sharing up to on more use really expand QX to AI we our more value how as deeply know can to experience work innovation call to our done from deliver in

over I'll Gary. that, to With turn it

you The been everyone. performance for Tinder X us and joining strengthened our momentum revenue hello, Thank Thanks, B.K. expecting. this hit year-over-year quarter again XX% earlier than quarter, of morning. we've direct this target we in growth, financial financial our and

As momentum clear and we We're also of B.K. the Match business. achieved financial record mentioned, by at power and quarterly as of revenue record the Tinder total AOI a exceptional as the by and at Hinge. revenue the in pleased revenue at momentum OI QX, user well Group demonstration

profits. and across enabling is costs company on to our deliver invest focus record judicious us in the growth Our businesses

total continue we time up U.S. notable year-over-year FX optimizations the earnings X% up subscriptions headwind to was expectations X% million, and our million call. QX and year-over-year in Match $XXX again compared more revenue weekly from QX. in than anticipated once for at $XX as deliver. the outperformed severe saw Tinder Group's was the of our we the in revenue price last to quarter, momentum a

million was U.S., XX% an role to direct been have revenue-enhancing increased U.S. QX. price at These have the and year-over-year XX% was at played the as weekly increases up a year RPP and up Tinder's Tinder price dramatically Tinder. clearly packages. revenue RPP $XXX growth up have Tinder has gone We U.S. In accelerating handful in revenue weekly optimizations RPP and Tinder international in due optimizations the was the at XX% year-over-year year-over-year. U.S. rollout and subscriptions the of important of markets key in on. $XX.XX

had also payer they've However, impact on this count year. Tinder's

subscribers U.S. were to payers than U.S. optimizations in of down modest by of key QX payers Tinder U.S. QX declined on in largely far price had off, increases. rolled been sequentially pricing. less to by payers million, Tinder in international weekly as impact offset in sequential due the as QX markets. the the several XX.X U.S. the the X% QX partially and year-over-year and members already from pricing subscribers to XX,XXX higher subject addition weekly was The majority

Tinder late electing top-of-funnel late top-of-funnel users, to Swipe on pulled in weakened the on in Tinder include some in reactivations several It which affected marketing in August key and back-to-college efforts which lapsed QX. registrations marketing spend With initiatives season trends July new slightly and September, Starts concentrate brand back in a early August, QX. trends, and of

users down when X% over consisting back, they year-over-year not XX women of down XX in demonstrating said, September younger did U.S., step see new year-over-year. to sharper June women. compared X% were to new old of the Tinder's That were the focus on years that users In same same impact the period,

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

direct business increases conversion. Azar direct continued decline engagement AI-driven revenue X% At Asia million to drive matching X% Match revenue Our Hyperconnect, Group year-over-year was QX, in year-over-year a it new algorithm neutral. XX% in implementation but grew FX up of as to saw meaningful $XX and

to QX. been While of Japanese a continues Pairs recent new as seen have experience and result market the saw subpar growth, year-over-year Azar ad revenue declines direct TV some user has we bright although improvement campaigns. The in real spot, a Hakuna

was notable an declines which moderated QX. than by better ad Evergreen a Indirect up to was million our year-over-year, itself direct At in Brands, improvement $XX revenue and in increase Emerging driven which year-over-year, compared X% to QX, impressions. QX, X% revenue was

for in up adjusted points a a Operating XX% income, or XX%, up million It QX after quarter. of XX% X million QX time up year-over-year, surpassing first was $XXX $XXX was year-over-year. AOI, points X last $XXX ever for million of representing up margin to year-over-year year-over-year. income was just XX%, margin operating the

year-over-year X.X of Cost revenue, up represented of including year-over-year points quarter X total QX costs to down a Google million million year-over-year. total X% payment in SBC grew of revenue. store revenue, final expenses, live X expense, Overall as The a App SBC as expense percent $XX increased but revenue. $X July. year-over-year, XX% total point a escrow including $X were percentage streaming points year-over-year million in and X% fees as down of included declined

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

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

SBC Hinge as flat were higher at a as due percentage increased to development and Product total year-over-year, primarily at XX%. X% a expense expense, costs, of compensation result revenue of including grew headcount

an to due XX% up software in $XX increase $X was Depreciation year-over-year primarily million or service. in internally to developed million, placed

expense increased term structure primarily increased while year-over-year our we're million QX interest $X XX% $XX in of costs due to to $X loan, floating on interest or income our Interest million, higher to due given earning million, balances. higher rates cash rate the

end was the Our of our net the leverage X.Xx gross We of and equivalents with trailing than short-term at of QX, hand. was Xx. cash ended below leverage cash, quarter on $XXX X.Xx AOI, less and million investments target

share remaining from of XX, shares X.X on quarter, Through reduced under XXXX, part $XXX continue early shares. buy employee of per outstanding programs. We share, September count, issued of shares million approximately price program, our the back share average our year the ability billion common million During at have X.X% our net have totaling now of repurchased equity shares providing $X we ample to approximately $XX to we an by of $XXX buyback the beginning million.

capital least new remainder continues flow like shown cash As first, other We expenditures intend BLK apps to the shareholders as free and we cash Chispa, that various in well in our initiatives. to businesses, significant way the drive disclosed have incubated with intend Archer of best XX% in buyback has of with invest free to value May use generation. now free or as cash letter, return and via at we our minimal the as newly the product to discussed to we which We flow be means. to flow, our shareholder company

not has of of M&A bar strategy high, confident We're be find financial meaningful return flow. we capital I to to pursue P&L. our to compelling adjacent been of our and as of to as category near or well, component the our is our to stated funding If expect though do capabilities mission. well. flexibility we that the right remaining use we bets accelerate we shareholders consistent delivery a second cash M&A that in and a expect maintain intend acquisitions M&A help But we're new to emphasize mission free want through our with acquisition we as will need and tech for excess always the or opportunities,

Turning to our financial outlook for QX 'XX.

for of revenue year-over-year. Match at $XXX of X% headwinds FX $XXX This the million total $XX of given we that earnings as the reflects brands quarterly as that expect million, events range of to we than portion will derive ongoing the up time last a to We call from more million risk not revenue generate anticipated our had well Group Israel, approximately million XX% $X there. our

tends or to million business, than are of QX on weaker where QX focus seen we've November because December. expected scheduled less seeing note the to advertisers $X a data season number previously than in and approximately ad as reflects pull sales trends we holiday Also start quarter also our sequentially be we campaigns. of a QX delay It that in

We we expect QX. than as seen FX a expect volatility in the That to X-point over we've X headwind continue months. less to year-over-year be FX significant said, past

Tinder, approximately XX% quarter second expect reflecting revenue year-over-year again, growth in At be seasonal consecutive double-digit direct up direct QX, trends. year-over-year of we to revenue and, a

a We than year-over-year to FX less X-point headwind. be expect

a outlook more loan à student carte weakening to in Our on of U.S. the repayments factor attempts Tinder's resumption the as as discretionary impacts well likely of revenue. consumer la

additional than weakness slightly slightly Tinder payer late new payers We summer Tinder's QX. user increase expect Tinder in trends. the in to QX greater RPP reflects year-over-year decline decline QX and reactivation than year-over-year in at The levels more to and in year-over-year

XXX,XXX estimate of to more we QX, fall and be negatively package payer initial continue of rollouts expect as we benefit In to QX the be payer to impacted impact the packages to Tinder's subscribers count but count We of sequential sequential the than had negative large in weekly weekly payers. markets out QX. without a in that this offsetting

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

MG QX. digits be down in expect revenue to direct mid-single year-over-year Asia We

Hyperconnect similar and expect QX We direct revenue year-over-year in for in growth Pairs rates QX. as

We decline Brands. strong direct Evergreen QX, growth & at expect the digits Emerging with continued Emerging our to revenue mid-single Brands year-over-year in

with given We year-over-year down to be weakening delaying advertisers several expect the or indirect pulling modestly campaigns. revenue QX in ad demand,

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

spend with marketing growth overall modestly increase and in newer expect increase The Archer year-over-year We League. apps, including of and some our meaningful to a QX, Tinder at

consistent we growth pace recent line For XXXX, full on Group AOI is achieve XXXX, in did and Match to slightly deliver year X% top margins than approximately with better expectations. our

with results the do that the settlement Our QX Google of XXXX reached and full year not was yesterday. impact include

early of growth of will year-over-year the deliver for impacts marketing initiatives product component revenue that maintaining total most the level optimizations to the We revenue to expect deliver year full plus growth as with ability momentum enter in be of ongoing The the 'XX XXXX critical anniversary. to and XX% Tinder's the to year.

allow before the Tinder's confident outcome for in to team's we execution the pinpointing total digits. another in precise year But revenue At and expectation. high most want build feel moment, 'XX execution year-over-year believe growth we 'XX for revenue the to full single likely year-over-year the growth total momentum quarter is a

assumed our year be could that change 'XX outlook headwind current total continue given growth impact outlook. FX that negatively. We also positively We've for a our monitor drive or but These growth, X-point want to the materially assess could environment conditions. also full to revenue macro macro to factors volatile to on revenue

'XX. We is around same would few believe control, we that There such out Digital including as at as uncertainty Canada, can in are are affect level app the related markets the headwinds deliver store we AOI digital some services certain costs Services EU's expect of to and in AOI. fees compliance taxes Act. margins at which also least deliver anticipated a to margin There our

incorporate margin We the attempted of our have to the settlement 'XX outlook. Google into impact

in We AI deepen build TAM for newer new spend the monetization, of in apps. can Tinder, pain We're and user marketing apps analyzing and growth points and contemplating are deep planning of penetration. innovation that some to our our resolve increase our potentially also user process particularly We're 'XX. of drive new our currently in carefully products' sources investments to appropriate to level drive at Hinge value

We in help increased these areas of spend reductions to impact spend areas. expect offset the in other

are limit vital hiring positions expect driving to to to that We also growth.

for expectation RPP growth the in high growth year a year-over-year improving direct current combination revenue deliver through single-digit is Our throughout year. range payer the Tinder next and to growth of

collectively We to similar deliver markets. brands excess growth European gains year-over-year the high continued direct XX% range in focus in in At and expect single-digit non-Tinder Hinge, and in on share its revenue the growth as expect 'XX. a in of 'XX driving direct revenue core we

We're pleased quarters. We're the across of in carry of that the past business over from we've into XXXX. this is X by the the confident result momentum the people momentum will It a portfolio. hard seen many work lot

Importantly, for was better XXXX. than is setup it entering next our much year

Tinder, products While in where innovation product and harnessing there revenue we're with higher delivering to adoption is growth our of trends and particularly and a payer capabilities increase progress, the AI to lot in the especially paramount happy stronger still do, across at is monetization. and drive sustained portfolio, user

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

[Operator first of comes Cowen. TD John our question Blackledge from Instructions] And

your initial margin of 'XX Gary, growth view maybe and puts could of assumptions? you the kind on discuss revenue takes and the further

John. Sure,

in some for give a unpacking it detail. little you more of at that a Let me shot

for really, to delivery initiatives. talked the we've And is as the performance product to velocity, XXXX. of we swing side, of marketing how about course, revenue Tinder team factor much delivers kind the well the executing feel of really on is biggest execution the times, the about continues XXXX Tinder, how how think good I be, related in growth many

on we've been funnel to we XXXX for top conversion needs a and planning and And so that on this payers payer and Tinder revenue. for deliver and in of both while, aware overall are improving

probably is look the that at guidance. as we biggest so swing And factor revenue XXXX the

out, it users We're younger la with of The Tinder, we second environment. point disposable the front to monitoring factor income. would at I be there a that because that Tinder lot à called which lot there's There's macro discretionary and to, is purchase. less of a more on a tends carte particularly revenue

on economies well so the we but watching that this the corner in increasingly on we're to And see what's we're to for about happens know the come turn has 'XX. our 'XX consumer We nervous thoughts in held globally as well. And months outlook we're what as the revenue in into factoring ahead. point,

something get which in the obviously our what's more in monitoring much a well. Middle on is fourth impact concern. And Middle quarter then We across closely nonetheless, East events more our but business horrific about quantified as as very visibility think and that the East, minor obviously of that Middle got events is in challenging specifically, what we're the you've going happen the to on the on the 'XX. obviously going on we to factor impact to to trying the going But we're East be

on the year. year. but as the is rates. done there's East best in volatility forward. to this last use the predictor forward the to again I going go a what of coming lot repeatedly, fair we've then with not what's and assume of and actually to as think the And is we FX volatility and a so rates. And Middle curve to consistently tends been FX continue curve the to predict come, be that relatedly FX of in to well we've what's happens economy But And it's going for seen We always impact sort forward that, as the

our factor on that's XXXX growth And another revenue swing outlook. so

those are are biggest but ones. would out. I Obviously, call think those I the others, there

contribution margin the we're about, marketing at analyzing the side, our and spend in which and the at League growth from at The you that Tinder, of Archer like asked some Tinder. mentioned addition businesses I also On Hinge to incremental newer

of on I I will we're some or incrementally, update spend go revenue but increased marketing process, we being Tinder. year part don't our something the more next an year. than the have think next we of see get as more through and it's have analyzing a into at guardrails that we'll early point we that as X of planning

narrative at that his I in we've Tinder that the that, viral need is the continue offset to and with growth to we as talked to portfolio, do marketing incremental of course the B.K. recognize to which And build elsewhere through we But we spend of supplement can been brand with about think remarks. the we Tinder, 'XX. across choose something doing should reductions do the that marketing,

of And my to and level to make of then of make once-in-a-decade users want and remarks our a point drive I out We AI harness is innovation, we level the opportunity investments the we in that in We the value really the that brands that, us into investments that opportunity last, well. right as critically sure to proper the think called with more we and in would do innovation providing to increase to I that AI. to think users. products which make important it's

We still that do to very early to we're way, in terms calibrate what in on capabilities. hiring, disciplined cognizant adding we're the requires terms what in We're and it want and that a trying of means in opportunity AI is. this what of and still

more that outlook final in well some XXXX. we have So this a we're for make doing, as sort and it's February on as of detailed determinations and to we and want provide calibrate something that carefully properly, we'll more

to "swing marketing are X But kind I investments for I 'XX. biggest margins on AI would the point of say the investments, would the factors" that

a and little I So helpful your hope answered more detail. question with that's

of Khajuria comes ISI. Evercore question Shweta The from next

high-level investment a product for areas of have Okay. think future will the payer growth a next overview you you Tinder provide maximum on that and year? Could top-of-mind impact please

take that a There's our Thanks, Tinder and question. product continue grind, can is experience daily evolve that team, on resonates our this Shweta, to one. with but the for we that I and lot to improve continue we had what experience daily and says surprise to continually of delight users, our Z we're our listening to daters. with our want product, and and Gen out and our going

it When we 'XX, RPP penetration, payer to comes reset in levels. the

we the payer So have of monetization be same to at mindful continually ways penetration new to time. drive and

can a to new So are couple key tweak monetization areas markets approach, for merchandising markets and Today, maybe potential I surfacing give specifically drive of believe examples. offers those cultures. international penetration that our I see more at very of and payer built in We real opportunities is Tinder. Western-centric. to X our there by revenue opportunities

of I I another à la carte mentioned earlier, focus for like area Additionally, believe us. is

X over Our were X ALC products launched primary years ago.

younger success We've our the great offerings, think believe especially So package We weekly ALC ALC of this seen can products. actually with our these and is with I to time -- our now revisit learnings translate well into those economy. add a the portfolio also current to users. with operations perfect can

As I carte à mentioned XX% nonsubscribers. are only our users la earlier, of

Thanks XXXX for middle in question. ecosystem. for there's as Like more plan a like paying early the big actually the XXXX. and to drive us we our of to mentioned, into payers we are we new share typically do think I opportunity our So in planning, Gary

comes Justin KeyBanc. question Patterson next of from The

can back you I when to more payers weekly normal could Great. growth. get you on think comment hoping was

on the value from You on love lifetime curious you as a I now, you more would alluded weekly letter, sequential hear And learnings more there. into [indiscernible] to just have within if this less these we're related, a to and few then plans. comment volatility but your accretion months

just I sure to question, understood your make I want Justin.

You payers growth weekly Tinder? asked broadly at or to more payers returning about year-over-year

Yes.

Payers assume broadly the Sorry, there. we going that's there within say, and, volatility sometime weekly year. more since normalize to have let's next for the confusion

into my XX revenue I of your is one, a on is I bit call drive I've And if XXnd company our before sustainable, RPP not maybe have strong think per context payer And on Okay. dive specifically this Understood. or growth mistaken, for to little revenue Thanks come that set want combination focuses growth growth. probably revenue I'm the of this before growth. earnings growth, of all how just the not the on payer a specifics and question. goal about I payer probably growth question. talked and through to

years, pricing investors product in in that. some marketplace, felt we And I payer on at the understand looked the the year product And of on this optimizing tends the opportunity some the a big this been years, price-optimize map has certainly, made, year in and agnostic. RPP and we the had deliver to and for want the which more been on be growth last outsized RPP to market. of years, more conscious decisions to in map level led be And not that of side price RPP be versus payer road somewhat Tinder U.S. side. we're focused able payer to to we growth, couple Because see better the to between growth, and growth. tends to prefer focused heavily road that a balance we

get significant see a on 'XX. done focus we've And pricing so that at towards big you wanted of RPP the was RPP making earlier. the we ago end and which to essentially to quarter growth revenue to revenue XX% double-digit deliver X of X Tinder has from enabled that, happen. room that that we've there the the in and quarters particularly seen or And adjust did in that And increase to can couple flat company U.S. numbers to year go a we in the this the revenue in growth

hit we're we our goals well revenue year, for So that that positioned the on feel front. we've good and

think more assume about for turn approach a been And revenue that I year-over-year per working gradually for what team the growth expect to been we able to we XXXX, planning will is reasonable has to and as payer that payer a growth see The road see deliver a quarters, so of growth think Tinder as now this it. been We've course We've the And balanced attention payer balance. coming while it's to to product our the over now. between the you can map. better improve.

And which conversion. deliver growth, positioned that's driving of top funnel, which drive year, and next top are intended of our to to initiatives increase we're for critical payer well both payer is improve and outlook as initiatives, product to funnel so marketing what we as to in are assuming

pricing the initiatives quantify to the that did payers probably just U.S. reduced in impact the by XXX,XXX. of Now it we year, this

because So of overstated it what payer was pricing it the competitively essentially amount. appropriate, as you count by that the lower than can think was was

so And the pricing a clearly and is made very revenue-accretive adjusted and higher to rate, has base that the to paying business. it's adjustments the a RPP- we've now that number lower on but payer

grow of from introduced I is And of also so kind the item. where gotten perspective. I more and then have I normal and will think a payer we've kind count, more think much the of by out which through through And this product washed end sequential a And outlook that is the as some weekly we subscribers initiatives. know you get payer of has on that's largely from but that that year. to the have year, base what to payer a volatility marketing next

and the think accretion they meeting and from revenue helpful only subscribers, on exceeding our and I even RPP LTV subs, the an that the of confident are we're around these We've an monitoring LTV basis. are on the weekly been that subscribers then standpoint of that's positive rates standpoint, resubscription rates been not expectations. And weekly but a renewal your or question

thing the think some confident we're we that for a is clearly so long-term not It's of done. a healthy long-term short-term thing ecosystem, we've do it. to and this win. It's And that

as And on weekly probably I we've other you ours. know, think tested subscribers brands of

So it's seeing of consistent I not are at the And seen metrics more at think, we're them for We've been a Tinder. year just Tinder. testing our we've brands. that with at than smaller there a some while, what

want. positive a fact subscribers the it's, packages. we're So in and our the the said, of comfortable And what lower-duration around younger resubscriptions higher-priced meeting it's renewal B.K. confident and LTV. we a data but lot for users rates, LTV of now understanding as have a They're these with need, frankly, of and that

business. And so a that's think we positive and that's for the what always we're delivering,

The next Cory question Carpenter from JPMorgan. of comes

before Can this you Google you about for settle expand outcome just decision trial, on how Match? think the your lawsuit to

in specifically, more you this? about could from impact embedded then And outlook the financial talk Gary, your XXXX

Sure.

So something consumer of been base. billing, the first settlement. have few to to is is years. a more when always and users, our uncertainty critical to outcome for And you're importantly, that now a to we thing. that around choice something of provide at all, opportunity is we least with pleased that able our billing the would we've topic of been that feel And There's able a which litigation that to we Getting provide. from with perspective able this want good going to consistently choice we the users we're trial, provide to we've have our we're said be next with provide resolved certainty the into good our shareholders I say the user happy

a real positive. think that's we So

are the unfortunately, settlement terms the of confidential. Now

October we And year. way And there's asked said years their to 'XX from not this against the through prior here go X now amounts as a more And settlement, we implementing the end effectively. October to XXXX, So than of in the costs $XX And ton the you. we unpack won't that Google the of us pieces billing later, basically policies. owe sitting But to escrow we to lawsuit. the agreed of for can that's -- to million into. that back start all go try the basically had some change Google part of detail where we're if me incremental you of wanted let

And credit cards for means so everything no incremental X-plus what fees on that that we've the last owed. years, been there's is processing

about to a I change per million that if month think our the release $X May XXXX, in you cost. of was probably go And back in we earnings policy estimated

that And so I you that of the math time do those period on just enumerated. savings probably can over

So to We and getting money, $XX clear any don't owe value. more that's million. we're back

how the initial of piece value. that's calculate So we

includes them. do there's things ongoing includes with a with that partnership we marketing, which distribution, value, then with cloud which includes that second other services. Google, services, their the we're into arrangement is of myriad across new includes And Google entering the It piece

So it's broad a partnership.

implement settlement new that the we basically, agreement And will the billing. -- partnership agreement choice says user

are that essentially to billing. broad of of going partnership, the impact benefits the pay new under user that XX%. And that as implementation such XX% offset will get required we the We fees and policy, which is choice result we're the a of

and and we neutral go 'XX, And 'XX the so as that period, kind we'll of there. from view in largely 'XX

know lot basically coming of There's sure, of decisions about, I'm the frequently the on fairness also, policies. current on legal afoot front, front asked regulatory related changes store that question to down and the policies. you app the there's As a

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But in changes result so some, time, be appropriate there for the haven't assume outlook at that a legal of will and fair XXXX to as or we our I time. those any Importantly, assumed any we'll actions. regulatory financial think quantify it's over

certainly expect benefits occurring in whatever get we in, and of changes of whatever a globally jurisdictions. in they're But the occur they occur to lot jurisdictions

to discuss that's monitor that continuing and So watch you we'll to we're evolve. continue things with as something and

together distraction going a more I growth. summary starting like really in great reduces as and points, today really we've on we I'd Gary, and like a -- to are. it amount team, had add we're of a place that can that we where that now Google, we're and of and focus feel with the forward, like couple good was a feel

a many around surfacing AI, this many we and these forward it different innovation, of benefit relationship, and Google with really to actually look then closer collaborate to this marketing business, view table can much the working as to significantly of cloud our believe Google I opportunities. at our fronts. from store on that on on and our helps their of partnership our being reset fronts, to promotion I brands with

confident very also on product focus Android we drive out We're help innovation. also now but we the how together in with users to innovate will our grow can our continue can relationship improve to day and that day with worldwide. and brands reach ability And Google

question Black Benjamin of Deutsche The from Bank. comes next

you Thanks on for you that we're you've supported specifically and the hear could -- that the weekly this momentum anticipate of payers seen with can to talk headwind Tinder. Hinge, the seeing? a if to about disclosure recent curious in launch subscriptions actually, on initiatives similar some Also, Hinge, like of you I'd be

be update that you past, perhaps expect $X lastly, strong you're the give be should over business thoughts milestone your seeing Could us hit? as an that on And the then years, the said a when trends in right Hinge few billion you to just given next could fundamental you now.

Benjamin. brand Thanks expanded continues great that and I the product of growth driving position driven markets and focusing monetization mouth. strength. word alongside is done narrative single and that team The question, of European to the has natural continues has with is to Hinge on The fantastic and user of this for great a super on one. take job accelerating this really growth. They've just to. initiatives of revenue momentum along high-intent resonate in tremendous can we've build a markets daters combination clear English-speaking a

the that subs packages continue for want. growth, to it's your what at that weekly mentioned, company continued the strength. similar and our but answer of of believe it's decision at Tinder, weekly driver revenue Hinge subs, apparent and were top-of-funnel subscription on To Hinge's to daters because right Gary strong we weekly the question less is actually Like

year, Now expect of percent in we a billion tackle for $XXX rate we your kind to generate million $X XX-plus expect to question, year. direct growth revenue this and Hinge next

for we're $XXX plus revenue So basically next in million about adding year.

well maybe X we're as to that we years. So if X revenue for you about can extrapolate billion in the adding, the question. to that growth $X Thanks as get rate

The Heaney of from James next comes Jefferies. question

Gary. one QX? Just put on a funnel? U.S. price churn is the in Or that. sequential a the for top the to weaker impacting Just weekly still Are and point just wanted dynamic subscriber finer growth of increases it Tinder payer really

Sure.

not you the churn do, was mean the way U.S. Just that I see that changes optimizations that to saw a you period the higher price payer a after make the James, the of U.S. understands, only subscriber prices. implemented like immediately. sure price you everybody as a for in as everybody in Tinder time we It's

moving is gradual on effect base so that through way And a sort its basis. the the of of payer Tinder

Tinder prices. I payers would a the probably you XX% that higher have maybe tell by seen now, majority, of so or

see So time. tail to over who are there's going still a them of people

there'll it we fairly lingering And for and Frankly, be -- it a there be I on sequential so few as an the the modest have a all that that on less that it's you impact But small I QX. the why modest, from keep expect of impact. slightly impact more that continue such as is declining chart It's And there's next quarters. still on shareholder XX in letter. can't see impact modest. a slightly really Page a impact but will guess, QX. still in

there still and now. bit it's but continue modest, it's so And will a so longer to be for

say modest price this impact then just obviously, had is from the the we've you've which impact is at generally, weekly continuing. sequential on from the U.S. that increases subs. impact the impacts would I And got Tinder, the And

subs we've the the of impact by that largely weekly will be I think this in the neutralized XXXX from introduced end year.

year that's is an U.S. So case optimizations. not price as the lingering ongoing with next effect into

I But we it We There's markets. that didn't in want weekly other always-on at in to catch-up times. do markets. to kind this subs Now than these that do for to is optimization. But something optimize in point of prices, Tinder optimization played U.S., out an opportunity doing to general, year. a and while and be all there's the in U.S. to weeklies we're price roll to going or out meant the market introduce continue key be going some smaller international markets. They're are of optimizations other

shock we'll more because smaller very of that time. was And effects the This and it's that, do through in our we're way we system, and markets, soon. so that will be working the But the should through be modest to it. much over year be bigger to going

everybody. should for So be think encouraging I that

Morgan of comes Stanley. The from Lauren question Schenk next

quarter? through time lag talk should seasonality what step Tinder growth? then And more within we you Can growth Lauren. marketing, the between payer XQ user for on extent, how Feather growth of a during to marketing it back and Nathan revenue about impacted broadly, any, taking is maybe the if think the This and

Thanks It Starts to Campaign, throughout year. the originally the we multiple a have for Swipe With When the launched we phases question. planned

with seasonally, months So Tinder, end July slower going for Tinder. tends be August into to of

this refresh So this period, of we're same content for we we new did important the that the in users not time during between women, note took the young the year. It's demo. with and to to phases see these balance opportunity the pullback targeting still

payers articulated. overall an have take users of which impact already to new step back and in we've in expect QX, some We

learned in but rappers into knit feature. product now are in innovation and our was Z have our the spend same lot college We beat Both targeted that marketing especially reallocate time the period, a to forward, campaigns of a our pushing going from outreach team Matchmaker we have larger marketing and our launch on also demographic this. well-known I'm at these consistent, integrated of time. some with closely to Gen able steady markets. In the

of have these the the campaigns and and tremendous and key are a Tinder excitement around part amount see, ingredient product a narrative. retelling buzz all can question. to created for Thanks you As the

The comes next Citigroup. question of from Arounian Ygal

Tinder both is expected about premium contribution seeing and in outlook the in in that then signs year? ask to and from for And here. what preliminary XQ next early want you're I --

built a very and Tinder team can optimize The I working really one. the that launched SELECT take of to SELECT the for at out onboarding and been have hard I'm really value understand and users process into team are product proud proposition. our market. still gone level. the of that help has have the members the low the really and invites that amount

of of revenue continuing So tens about to we learn can to believe feel millions the from continue that the users do continue financial the it in we We potential of year. will and optimistic product, and to of generate invites. and iterate, next the continue ramp dollars number will we're our up of

of The next from comes Salmon Dan New question Research. Street

to interest Middle growth I the here. just a I've impact got in X-part little want macro I East of letter. higher as GDP on question elaborate conflict shareholder rates, U.S.? in consumer a deterioration a you bit. about could kind mentioned So you of in the the the a know the you a back of circle in resilient light macro in and what considerable especially see bit little But conditions,

also carte on And la It the with the back in it's little then à second users to student it à related carte, bit of part, could seems circle loan repayments? how engage impacting a of there's impact we just like things sounds la but some the one first younger like changes place.

So little perhaps more. a that you bit can parse

Sure.

a Let try, that Dan. me give

the Tinder la loans the some at X student student points in perspective, people cohorts, would in of on July to impacted not where probably first this since be repayments, at trend And expect the then, start of the annual looking been and la that think à U.S. the rest seen from X be carte going I to we obviously that versus growth loan we an having Tinder was revenue. world, repaying there was It's it's at have of potentially costing. an the Tinder announced or resumption. this à weakness again. is a we've And we're age by would carte issue, that watching on

we impact. where that that's And can there see is that

in we we when and around, to can in there's them to been It by and And through people age came some. will watching have was do enough what impact started estimate start try first here versus bills When So U.S. we have paying now July. data, it November. October global the cohort, think is. announced, the it we've that

So our think something we've outlook. to factor able it's and definitely and we're trying that. in to to XXXX QX something to been And do watch I

factor. one that's So

you're the the resiliency GDP recent most correct. quarter mentioned, the other has held that And On year. course, the and all well strong, been mentioned other this you the side around you of very consumer, consumer through growth on that of that's in the the thing has of course right that

getting we're starting data things at consumer. what savings look the kind card of are as the like think to consumer that see I that, around potential indicates credit the that end around macro delinquencies around and we're we strength, and focused on, we some signs risk is of though, to there's rates, to us

things If makes of than feel our little of I factor going not and evolving on a happen around be tend So bit to to that XXXX to us more weaken little expected case, sitting side, there's in and It would in our outlook. I'm the year. ends say, younger But the a really for to that that being the could as does consumer of conservative. somebody on cautious 'XX. we kind to next feels didn't account Tinder, stronger the back that trends discretionary the into the to the indicate in. think it being ended that And happy a like 'XX." consumer prudent than that sense. the be leads at impact, and the upside to I of given lot up expectations consumers does trying providing we're it bit prognosticate economy, the know, and us thing we consumer now have with That we on over up around I that. are wrong prudent guys about were factor tried say And who right factors to income, we've in seeing too have the and try business more so some do possibility for consumer to think "You to now, to all in happen weakness then taking here, course our come less being that right XXXX, that who of to for what's we're some expectations initial

you was earnings I else's everyone you Thank joining, this helpful, for Hopefully, appreciate to early for talking next them Dan, and QX, at at very forward February. of call time. everyone be to We questions. the again will think and for look January our much. end we and asking everyone which we're Thank that morning. on

presentation, today's Thank and for attending you may disconnect. now has conference you concluded. now The