Match (MTCH) 31 Jan 242023 Q4 Earnings call transcript

Welcome to the Match Group Fourth 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.

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

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

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

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

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

and we progress a team. reflect as that deeply I As XXXX, accomplishments I made on am the proud of

an been ago, MG Tinder, across entirely operating year in leaders it's structure Hinge, new X we and with working. put E&E, new several Just place Asia and introduced

deepened foundation our on we ending innovation, longer-term of growth financial and with same we the execution the and sustained year momentum, consecutive strong At recaptured for Together, record quarter third time, revenue lay the focus our helping AOI. growth.

suited a next Tinder in the lead as its detail dive many goals and this chapter why take plans among of leader recently few Match as COO earlier business announced as most year, Her expertise has an ambitious just Before into is in Faye been for as to recognize Group of regarding impactful believe and of a Faye at reasons skills, CEO, I gaming intimate and Tinder. wanted strategy Faye of to are years, growth. best I we other well which online we coming moment for Iosotaluno to understanding more her new deep our the category development, Tinder's this several month.

working together. strong year, confidence The giving their ability which in me management execute Faye by we and to in reflect shared I her Tinder is team, our set utmost forward [indiscernible]. the also vision, Tinder's with to plans supported for place last look

work to must every use expectations and day Match we to match genuine daters. today of date meet technologies to connections. come At today's the Group, modern human highly tools and that evolve people to But motivated connect, foster

But And decade as Tinder once and people of online need create to can it's show daters foster women, are did setting users engaging to unique our maps safe exciting road true communities as selves, that feel apps. showcase with where boldly singles like ours us. joyful for highly and this innovate things mind. table platforms There our matches. their shown be up experiences be groups In certain ago, to imperative to of to and are XXXX, a on and we underrepresented curated is engaging, stakes for personalities shaped in this authentic their allow and respected. that in continue new are digital-first all generation expect an We

more our journey. women's across Z inclusive we with existing and solving the beginning Tinder First, a on working AI, pain for the X user experiences dating Hinge. Tinder with largest focus experience apps, Gen to are dating improve points Leveraging while key and creating will brands, beginning improving

existing experience. Tinder, modernizing her relentlessly and on At are Faye focused team the

better adding For and behaviors gestures example, and right take In left to the Tinder's build swipe will in users swipe new always like discovery effortless align swipe engage in able will able Explore now they swipe plans and on for a deeper today's but experience. more swipe to to only up be down have, to with XXXX, by Tinder feature. to mechanism be revamped Not profiles as they expectations.

produce safety, app. This more working and focused experiences come continuously trust and relevant real features every recommendations. and was of aligns set right into product features for on execution include also time By while key modernizing year experience Tinder a an they the and on are improved works improving give that XXXX a women expecting. which on product, primary the with velocity what of photos is generations increased strong Tinder, what the increased building several will curation that foundation. of will the daters next

team In feature XXXX, This to all idea is rapid a strategy and pivot, doesn't absorbing valuable quickly fast-fail results, that not and insights adopting success. yield innovation new groundbreaking a move Tinder agility. forward. will be prioritizes is the testing. a every recognize or experimentation about is a If anticipated mentality, approach the We that prepared

embrace very it it's And but sets elevates when gold, for standard failures growth. it users, do new strike we learn risk that will only enhance. from and business, a our However, our willingness to we continually which this fuels our not

shapes We a confident Tinder sharing transform product redefines XXXX meaningfully these look that forward over more to and in roots but experience I its beyond time, will am changes as it at on leveraging that of builds AI further its heart experience journey. by a Hinge Hinge dater's meaningful experience intentioned Similarly, is places again. to a that yet dating guidance the reimagining and improve envisions connection. powerful focused and

great utilize over understand aim for on help progress. will users. improving of collected other what insights I right its XXXX, interests begin of Hinge the will profiles, you're vast discover looking years. outcomes truly and dating rich will goal highlight in the in many compatibility to several matches to based you users the that share as work in to sooner. This with has redesigned for shared person can't introduce wait you Hinge ultimate things and features dates addition more interactions This and experience on treasure Hinge order and to to will trove

been we and a impact. may the bring central that those new established have and XXXX XXXX, beyond, team making the grow that previously innovation In who traditional a disruptive significant dating not category In has focus launching will in on tried will team app. brands

our help a technology building to overall internal our central as we're improve effectiveness Additionally, teams company. coordination with capabilities in innovation

safety we it than more forward. trust as far it algorithms. optimization AI efforts brings for just larger play our a matching and I cost it has Group view AI role to at an moving that. strategic an with important role will While believe years efficiencies played even tool, potent and And from Match

to across groundbreaking a journey. us improvements enables AI bring dater's

of improving We safer every our for we expect making The discoverability matching aspect importantly, profile quality, environment even apps like do are it this to and in. to by take connect are large-scale and bold, an our touch changes bets time. that even more creating and users

through out marketplace. AI-driven standalone AI-powered and expect in roll However, tangible make within as existing begin testing we the our new as to apps, XXXX progress enhancements and feature we capabilities apps

indications narrative, Tinder, and half connection inclusivity. from flow in particularly and of Z at product women, that result us is confident we as will be early pursue of what to an these year freedom cash Gen of and am evident gives our human brand modernizing the celebrates momentum ecosystem that a consistent to I the ability road Ultimately, free and maps. recognize the deliver ambitious second growth that revenue

boundaries the we innovation, discipline. of push will financial maintain we As

is for both flow, revenues, generate to enhance enduring to We continue lead shifts, growth. capital grow services and commitments products and our We've will company an wave the dedication will is that the to cash maintain we'll positioning delight XXXX of at short-term and and shareholders. return this delivering adapting technology always unwavering or on to been long-term which our our customers. our At heart delivering about our significant change. forefront, to us allow margins free endeavors of

I will with Gary. that, to And over turn it

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

again financial strong quarter. performance demonstrated this business Our

for revenue strengthen the year-over-year and growth We double-digit Tinder once the as the consecutive as direct OI quarter, consecutive delivered to third further evaluating again business. quarter whole. a the quarterly company taken the record record we've AOI for did steps second achieved

was acceleration revenue from total QX XX% year-over-year $XXX Group's X% up QX. an for million, Match in year-over-year,

of For of Group total up revenue X% the $X.X representing full year-over-year AOI Match year, billion, margin of billion, $X.X delivered XX%. with

million received goal $XX better AOI part XXXX, our flat as points of compared we the full margins the margin. to been XX meeting year AOI of Google have year-over-year settlement, basis up would or Excluding

and $XXX holiday RPP packages in We reactivations slightly in and million. on up users in rolled Tinder up and during continued November QX December Tinder to XX% Tinder globally, and was registrations revenue optimizations a the did year-over-year QX U.S. below in resulting mid-single-digit user declined year-over-year at months, the out XX the of Tinder, earlier QX. pressure expectations. direct X% $XX.XX both million, new in at to XXXX. price payers weekly was a XX% decline see year-over-year due year-over-year U.S. effects the we at our

billion, For direct in delivered the revenue X% of with up year, of XX%. margins Tinder $X.X excess AOI year-over-year

XX% XX% further to year-over-year X-point perform of well. very Hinge brand over QX. revenue year-over-year year-over-year, payers were X.X QX was Hinge up QX. to up while growth XX% million, over in Hinge $XX acceleration a RPP Our continued to accelerated direct

of and QX, slowdown. the Hinge just like cohort. delivered of due a to many during funnel XXXX market that has terms than of a every slowdown among the Hinge our did QX we seasonal brands For in had slower said, not were seasonal year, top QX in growth gender in full see. for million shy million, that to revenue This Historically, $XXX and every Hinge time, anticipating. direct $XXX has first target of age seen virtually Hinge very see start top-of-funnel primarily strong

a been there's So clear bounce back.

to XX% up us $XX million part AOI of litigation QX for the was was Group year-over-year, settlement as XX%. Match margins that returned million, Google including of $XXX

settlement. margin out have have XXXX. million for of Excluding impairment and XXXX would a XX% and adjusting year-over-year, been have would X.X was $XXX of the impact Operating been points margin QX AOI the in Google of $XX margins million, not included XX% XX%, impairment the million, for if the OI after in up $XXX QX income would approximately of improved XX%. an intangibles

were X% expenses, settlement. Google SBC Overall in expense, year-over-year excluding QX, down XX% including the down

expense, of year-over-year SBC represented cost revenue, settlement, revenue, X the including total down in year-over-year. point XX% and Excluding QX of X% grew

$XX costs, due year-over-year QX quarter. a or Excluding increased spend Selling million including of SBC X percent the primarily increased revenue of was fees as and Selling fourth points at million marketing total expense, year-over-year, the spend and Tinder. in settlement, XX%. up a revenue percentage to at increased App XX basis total as Store points XX% in marketing $XX

declined year-over-year and development $XX year-over-year as including of at year-over-year. X% increased were percent and of X due declined expense, QX at higher fees in compensation revenue primarily by as costs, SBC as million a percent XX% Product of point X headcount to Tinder QX legal including up professional as and in XX%. a costs, and result revenue to a expense, expense grew G&A SBC Hinge XX% points total

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

million to to Tinder, X-point million, to we We headwind. be expect direct we QX. Again, FX to up a $XXX X% FX $XXX QX. At in be expect year-over-year headwind in be year-over-year expect X-point revenue XX% to a year-over-year

we in payers expect and to payer in in what with than be less We number RPP demonstrating line broadly saw QX QX in half year-over-year of the trends saw sequential decline we than QX. with

up our brands, spend Within year-over-year of growth other relatively expect last million to direct Hinge direct $XXX revenue consumers' brands, we other approximately of has approximately conditions and expect deliver $XXX million of XX%. macroeconomic that revenue willingness call. we our We QX, $XXX X% our to earnings to Across since year-over-year. million, stable to remained believe X% in

additional impact revenue. or seen subscription not our any ALC have We on

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

at to overall continue at Hinge during to as at levels the $XX in user quarter. compared first approximately we season our Tinder in expect core European and growth seek collectively the Hinge reinvigorate to spend stellar brands at by early these at Tinder and marketing the spending year-over-year expansion peak in million markets growth 'XX were We both and user QX increase

direct X% monitor continue closely to with $X.XXX don't between billion to X% marketing drive pull X% We focus and to can and of long-term representing of provides Tinder solid believe or growth to the That Tinder, product positioned this to total year-over-year room and of said, if improvements, for results. leadership deliver believe to growth. entered revenue billion for back see We X%. to ecosystem revenue we the new desired and growth billion, growth on of At $X.XXX initiatives improvements $X.XXX revenue with XXXX expect user sustainable we're we efficacy we momentum $X.XXX billion revenue year-over-year. sufficient target

improvement not modest in over the assumes yet but trends course growth. Our return outlook Tinder XXXX a year-over-year to user user of

brands, payer in payer positive or year-over-year to we to by other growth payer of European our share expect growth be brands, X% positive We to the expect focus billion QX. which year, growth. a to and Across $XXX improve with Within core we through of revenue markets. direct represents achieving $X.XXX on other $X.XXX net sequential QX XX% and adds billion to expect XX% direct continued million, in year-over-year million growth year-over-year at Hinge, to our XX% driving Hinge's gains $XXX revenue

be FX to full headwind revenue 'XX growth. assumed a We've total to year X.X-point

We up X% year-over-year. revenue approximately expect approximately indirect $XX XXXX million, of

For be at for margins AOI to least XXXX, our current is anticipation XX%.

the Our will margin revenue various to calibrate plans. how certain growth depend largely that growth achieve are levels we on brands' investments and of our organic critical

several are like impacting margins that to call are key investment we'd There areas out. that

marketing. both is product and at innovation in first Tinder The

marketing and product narrative higher improve As we're the we reinvent cater experience and build to a improved the in brand the better Tinder Gen substantial to resources awareness incremental experience. into and of and better new experience, and to women putting

million incremental increased Tinder to innovation compared spend we product million from $XX expense XXXX, and For in in 'XX. estimate marketing $XX 'XX to

The as potentially in well our development as brands the and resistors TAM. users' our second and is experience expand the category help into bring new can as AI-related believe AI-centric of improve AI key we investments products

long at out features different We test and throughout Hinge Tinder rolled of to being that list plans as AI well have XXXX. a products product new leverage as and

incremental spend million of current expectation for AI-related Match million is Group. to XXXX $XX Our across $XX

its ambitious Hinge and to Hinge. entered. the well-regarded in confident And billion over business, off the We're has finally, markets few has it and product be investment a traction achieved years line $X top in build next it that can all an plan

is in anticipate we to to we're significant this that us million To full into terms, and to business during Hinge's operating this markets expansion XXXX. long means going the dollar continuing to potential. leverage to term, Hinge's that While in innovation, XXXX. $XX margins ensure managing marketing brand in $XX realize In incrementally in invest we're flat phase, business and compared the product help hyper-growth million AOI roughly XXXX product

$XXX two, of calibrated able proceeds. specifically on and are X least growth XX% investment revenue operating and of to: but achieve which the reduction as margins we this not great leverage position can business, us only of at innovation to expect reinvesting three, to long-term that Because help areas to payer our this in to people. growth investment these sustained ones X capitalize be of cost into for target potential; Hinge's we're actions areas, ensure All elective us user, year and of the deliver natural one, key and success while the roughly million who year full at connecting next business Tinder; the introduce the we're

on ] basis. tangible [ its and to expanding delivering improved outlined, share. year, begin on investment women among experience product market and this not to expect we Hinge see Gen Tinder, goals Importantly, satisfaction progress better full dollar BK to a including and from we results payback necessarily as making see expect But Z, at this revenue

We're already approximately in our AI-driven forward well to business as We our as brands flat strategically and margins also [indiscernible]. investments core attractive these make move positioned features to year-over-year. holding while expect our see

As some the on know, changes App policies Markets in of the implementation announced March the Act to recently Digital you Store Union in upcoming to Apple may X. their response European of fee

approximately an preliminary benefit. analyze and is to continue $XX these our We estimate changes, annualized million

change policies materially However, over proposal time. merely Apple's new and are a could

exceed achieved We for will expect margin changes any from savings meet that year. us the help we Apple's our objective or

QX Given implementation anticipate date, the significant don't impact. March we

the included from EU, have or does would geographies stores which estimate alternative us. benefit include we changes of Our from $XX in substantial any benefits million processors payment outside policy for be use annualized not nor the app

lead was likely said to changes and that the App globally. policies the Store to have before We DMA likely in to EU

Epic case and its seen case. Google come. we the first more in in This to antitrust U.S. brick recent Court have We versus versus win fall the decision the the in addition regard, Apple this in Epic's to Supreme expect and is by

how evolve, ample this outlook paid of not further App million Store all App time XXXX would from we in provides out $XXX changes to have included any that room for reduction. to continues we to in point want at watch We the as benefits we though this our Stores

achieved of We're back of we the results profitability. pleased in growth the both half by terms in financial and 'XX revenue

place solid growth. in marketing plans deliver sustained to position lead user have We business growth while financial 'XX for to enabling performance product long-term initiatives to and improved and the

revenue Group to combination stellar a rare continue of profitability Match substantial provides and We believe free that flow cash growth, generation.

plans companies place believe offer shareholders' of share supplement We any, combination return shareholders. capital other to in our potentially or our this significant have few, means. repurchases We return space attributes with of via to in if

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

[Operator Instructions] today The question from from Shweta Evercore ISI. Khajuria first comes

Elliott's can on stake BK, your conversations in them and comment with anything the you company far? thus

my level provide please follow-up positive positive quarter? on you could is in payer And adds quarter turning fourth a year-over-year then of third in in and Tinder for Gary. net confidence growth more Gary, color the your

for Shweta, past dialogue collaborative over Thanks, ever we since We've the their question. Great. weeks the with had the Elliott stake learned in few company. about first

including to to our We forward are all with looking shareholders, continuing engage of Elliott.

and think see around QX. And goals we payer questions QX in year-over-year and then, of to of have high said initiatives of QX. think modest are the our the a need remarks, Tinder payer achieve get net we adds, growth we're that by on and 'XX, add will QX combination side and that's adds we net in have then that we net growth of those in the we year-over-year Shweta, in sequential the And that confidence letter on which improvement Tinder level going a through growth sequential place few your to and in -- we have by as in will put course I that drive been the product things, most marketing into notably 'XX some

series just series plans. things, on or one expecting that improvements not to that. drive in thing Tinder and initiatives And a of the specific of a it's It's we're relying that has

think we middle around year. so the achieving that will And adds culminate goals by in of this the net payer

question with The Schenk Lauren Stanley. Morgan next from comes

the And what on the one be Just Tinder will was how incremental marketing push 'XX? just are about growth the $XX guide. evolve caused despite Tinder you've negative It that about? believe drivers how then if at the million user XXXX, speaking on we marketing through think there spend And do that marketing been other spend? looking account? Is we take incremental to EBITDA Street. XXXX, cadence all? in And should just message Or of about back marketing the there below the XQ into should you

Yes.

when a a think start you build. new so brand story, time. hadn't can finally to narrative to it's for on to understand on what tell trajectory 'XX of went understand to that something important I Tinder, We and business. kind to brand narrative takes the in long that a in the it put try place put of we in that in We did that time focused you place XXXX. And So

into And growth immediately. so doesn't it translate user

the part fact, year, 'XX we of initiatives. marketing pretty of the what the in growth side in progress in on was first And good user result a as the saw half in

think a while. effectively hadn't on in been market market in I the we side the very

middle the let's of growth really good And user it, until year did year. the call some improvement see of February so from, last we

And particularly on side for in the mid-single brand step campaign, we while consideration did brand back, continue reverted half digits year, second women. we focus of the the on where had and movement then of that they the key kind see of some trends that improvement year-over-year. And younger down consideration, kind in user in saw we the to been, metrics to

campaign so demographic, And awarded the publications. were was brand The with and ad well it it's very do over the course has that expected [ the we very campaign target satisfied we some by of doing been prenscient the to of been ] what XXXX.

that's philosophy markets. so And in the have the we're of budgeted though campaign. continuing brands, like would trying there's that And not to continuing marketing. year. And so is to many point that for in it this what only we're so out do We're key marketing gaps invest global much. our do for, Tinder, company. in I always-on marketing we've an a to product-driven just can

the side, really be has to by And and to to And marketing marketing or product app aligned user innovated once with consider really product needs back and user the needs the growth so to first time product while app on can reconsider help driven or innovation. be for to it improved. people the product the growth drive

is So of that the part for plan XXXX.

pointed pretty marketing We app spending drive out, the as side, are on after we back do want to because to you the heavily QX in users the refresh.

for the for of we plan first in of part spend versus first think is for maybe the the I do are magnitude that maybe expectations the that so accounts quarter marketing. people quite had that planning what the analysts quarter. quarter. the And what think understand Tinder didn't I sell-side do gap to in on

that the of so bit we softness are a which and to softness QX, X and that well saw as leads -- little that factors. AOI softness revenue probably And therefore, in user plus

to say marketing effectiveness or the is probably back. But nimble quarter. We that, side. adjust we in say, spread we throughout cadence and extent we we're trends first marketing continue evenly on the And the after expected can spend the of growth as are planning don't the user pull rest marketing heavily see pretty to the the I year. campaign, to the would of

evenly the in the And And say Tinder at the now, we'll so then of hard well. sort quarter rest pretty first and as see. it's way. and recalibrate of I'd at But spread we're Hinge right frankly, pushing

comes with UBS. Kuntarich question Chris next from The

Tinder product is talk and marketing little what early bit the for really that refresh just how into learnings Tinder more this tying around year? been about you those about spend a Can have you're that the talking

months we're than modernization seeing been step the undergoing team. already in we're It's refresh question, Great refresh December was Chris. product one. that since that live, as X encouraging and our less take the first signs. The went I'll a in

For currently our users mode. example, over of XX% are dark using daily

are prompts especially And adoption strong were user the considering This behind. already introduced. quizzes, as are that indicator of not rate, these a adoption Quizzes early a seeing XX% and for is rates. and we're prompts about features how excited recently far engagement,

that these to to for are remember it's add important that features us like I'd optional.

not adopt but to all more So users will them, offers users engage. for ways their presence

Our fall Tinder. them numerous works tremendous has fail-fast before a These learning strategy broader us features approach for doesn't last testing combining independently have into taught created our tests across and informing what refresh XXXX. what quickly work, to identify

And on year. leaning levels marketing the spend as to adjust we features. product the of we are [indiscernible] spot leverage However, strategy, marketing Gary throughout mentioned, in with our new to might Therefore, our these it's rollout crucial features align new to

question Justin with KeyBanc. comes from next The Patterson

seen more Could seasonality December Great. Hinge haven't about I talked that in really occurred know about Hinge we the before. little you a drove you slowdown bit the elaborate during that and what reacceleration?

seasonality more that you've apps to how there? what some curious your I'm in towards So mature of compares seen

Sure.

me Let take that, Justin.

they So most world season, because their pull users and in the apps, focus tend November at December. the in parts it We in we in dating from in see ones, see We activities of larger period that kind it of other and the back many holiday at of see our especially That's Tinder. do typical. the on brands to seasonality period.

our after for Day season through actually Valentine's Day, right very a Christmas Valentine's what we tend love. That's to Christmas is from people right see period. when then And start we peak see looking after strong to

so typically cadence we of kind business. the And that's that see the in

U.S., achieved of see of core some markets historically haven't I in at at do seasonality that are now level but and reasonable Hinge, to Tinder starting We that that business brands. seen the some think the scale like we has other the like we

time that so that. we'll forward. was And XXXX see seen I'm first that the that we've But going expecting

up good -- mirror it start us off had news period. holiday this that is the a picked left very of kind to off for off at is the where in The in point. got Hinge picked that, January, rearview before strong

gender We've good operates the really geographies strength it and seen all cohorts. where in all age across

January. gets for encouraging performance so to thus year. bode brand for off very to that's rest And pleased strong what's happened its we're a And peak tends season, when far the very with the start a well in in of it the because

we're happy Hinge we're XXXX. to that, see to so And well and forward performing in looking

Zach The Morse ] from Research. Wolfe next [ with question comes

Tinder's appreciate [ I carte kind more product wanted on I what's road of stated. the that map la kind for the year on you ] à color Great. opportunity of focus the included to And that this this in letter.

or this is So carte year? monetization may products the can new for what versus of the kind kind this payer kind year? you see driver more I have of on of preliminary mean details you a any share half la offering for this second à that that offered as of planned penetration currently the you And differ how in app. then do

hold actually our going features, Zach, offerings I and Boost, historically, of our share, diving for We're have ALC specifics X back ALC into thanks for question. can the competitive the to But reasons. on main what Super not Like for have our upcoming bring can launched long users. a features users stand now we features But We're gain visibility time. any ALC new more exploring been and ALC out. even helping that value more to additional

them offering them we Our to on effort ALC this a team new tested collaborate of to roll year. we actually subs portfolio with Hinge. tune resonates on effort, new how we offering to instrumental out partner to Tinder. Tinder in these mobilize introduced is swipe approach us in right the tests. see in of our up new will daters. will Expect on And brands features and most what offerings Tinder This be half weekly second vigorously team with before before similar the these trialing test This this to see potential some our of and from

with Benjamin The Black comes Deutsche next from Bank. question

strategy? guess the velocity, should place, How output marketing instance, like leadership I I I think strategy? we with think what, guess, we things Tinder should For in on about in product you your new focus evolving? Tinder, any difference improvements. that sort you you guys of ecosystem in And how at place also successor of do renewed mentioned a role have permanent envision the BK, expect now sort

Thanks, for the Ben, question.

real last Now Faye months, the product has over She's business knows XX me. partner and a passionate out. to about inside been the Tinder so and

only to stabilized team Faye accelerate on that growth. We've And to returned Tinder that clear The going fully aligned I goals. is is believe momentum. and their and revenue

and Faye in in overall focus now And be bringing has will map. at product, pushing ecosystem the women's boosting shaping speed experience leadership. her enhancing and with particularly she been is road as forward development the modernizing health instrumental our CEO, Tinder. vital And

more our plan later will superior for focus making women. users this for year, core She is and younger but ensure the clear: more engaging Tinder share of experiences

Now that I as portfolio. the do of work a of innovation rewarding to a exciting across my sprint There's Match ton I'm involved across Group wealth have for role, in. deeply

Tinder to I'm the time, close Faye at same Now effective and a maintaining team. the leadership partnership and committed with

We drive together to will ensure that we a continue Tinder team. as growth

next Mark Stifel. question comes with from Kelley The

that across unified Great. to remarks. AI for commentary infrastructure the note and of the my in guess I lot like have question prepared is A utilized a portfolio? BK. AI I one, the the probably just back end goal will in be have on your is,

terms where do guess AI the of needs should that aware you those us implications Or be gave individual second of? sense in that, but year to modify And we I know are for unique brand there margins, across cost I to full each think guidance you any makes it maybe capabilities?

and business. mean And I AI my that of Match want someone the Mark. is that actually about to I thoughts around AI. Group to future hoping ask was some AI. just Thanks, share our I existential I of believe me

help improved make optimizing category different our companies AI looking just us experiences puts in And from us improvements. products will AI at that will and and truly a better. slight other are that create user through

and profile technology from revolutionary AI dating, everything. to the entire This we're across felt for through literally envision to dates, everything bringing be entire I is influencing creation our experience, to it matching for connecting and life portfolio.

models and Our a resource internally. dating deep singles AI of is for a team as data our understanding and informing dating rich

AI tailored and they own unique strategies Tinder to and biggest want. needs what brands, its listening Our their have and X to Hinge, daters

$XX going drive the the this mentioned $XX company. thing I'm Gary this his talented that entire and future are at have right excited better we is do believe in all and to the growth the playing innovation crucial entire central across do absolutely in about our revolution products. in initiatives new a role moonshot ideas experiences investing supporting us enduring Hyperconnect to team our it's strength, for million we of And on across business. comments incubating really team. AI innovation. I these portfolio million across working Now And for team to

Arounian The next question Ygal with Citigroup. from comes

it meaningful a having impact? contribute to least, or how Just And follow-up one you this AI And for embedded see kind for payers RPP? this both? lots does of more for it around you it talk is a on just thought. do obviously, year, as contribution the more can see driver the expectations understand maybe, -- AI at trying XXXX. When it Or much for to And here. of into of

Why over planned as products a of that don't said, the that for and BK and going Tinder, course of roll we've lot exciting initiatives to for So AI one? jump we're I new well XXXX. for got in take as Hinge

So features we they experience. we of user these the high for all expectations delivery very have products do enhance think that and will

at would efforts. more. included think of would in products in value pay haven't from so point, any experience, AI the various they outlook early notable and people this to these revenue it that the tell that we RPP because our be better XXXX you still evolution it's very willing features, think that it's But product given logical be should and to see I a the benefit will more in And I

waiting of on we've roll the do BK year. As build the put are mentioned, all at can revenue so we the million, $XX different products over work which people, to out these the costs, features side. in and to hire we've and the estimated out $XX go them But we course of million

at view we'll the assumption, right this you be. Now I we're continue it the update a seeing think what year might very it's progresses. But the to time, conservative AI point well thing do. initiatives as in that to obviously and as could from And

Cory JPMorgan. comes question next with from The Carpenter

turnaround think Or is that just you And would be could call in second or benefit, map guide? that would Store Tinder to included Tinder you payer half? $XX clarify, Anything in impactful Gary, on highlight road in product million out the particularly the the something that App driving that upside? that is be

results Tinder deliver. and about double-digit really for And product We've growth I'll execution months, the few well and X about We road achieved past and demonstrated Cory. progress the expectations. to have velocity the quarters Tinder's excited strong really the made They've aligned with over the take capability the good maps continued I'm really first for last that question, that our part of XXXX. the at feel we've consecutively. marketing revenue

Now a we optimistic decline, sequential that payer large the QX about but see declines future we moderating. we acknowledge are as was these

that are basis. turn confidence QX, initiatives coupled underway. product will on confident Tinder in sequential we're marketing This from ahead, payers positive with that stems Looking a several

Our and the showing key the to paid right time. of right right strategies include user enhancing the visibility offer packages our value at and dynamically the

our market-specific experimenting additionally, paywall. on with is and behind working a features Now certain more that premium team conversion strategies currently sit unbundling monetization

question. outlook. the floor margin And on then DMA our financial this in got we've Cory,

would that in the so $XX And saying it's we're probably million, accrue because annualized. XXXX million $XX

exceed the say target our That ability X/X, goes an year as million. let's $XX you gives the margin achieve if So it, or us on. helps target even it's obviously to us call margin

or us kind it's end in regard push than higher of so be to And what kind expecting. at people that the of maybe top might helpful

from perspective. our definitely so it's And positive a

do of positive I think we'll to it's the million $XX year. think whether reinvested. lot should for any on, Obviously, that got about have and But investment a going so ultimately, of a be we've

Squali The next Truist with from comes Securities. question Youssef

tech in how been about XXXX? ultimately, in you onto that Brands Where technology talking And Evergreen onto savings are baking So to one or in, you over from brands has of company and deriving to Emerging the time? migrate margin the consolidate platform be the that stack. are impact steps duplicative kind What a reduce cost process? much to & single do anticipate you functions

Sure.

spent a that. lot addressing We haven't of

been and be related businesses, the is and the Emerging happening, businesses E&E trying we're question. efficient. business, Evergreen to this where So more both appreciate to our What's the

and What business. redundancies reduce we've started aspects various the to do in centralize E&E of teams is

at some duplication. you if care function, basis. to at look their function, So an this look the we're and reducing customer savings that's marketing ongoing And on year the you of other operations, aspects leading

is got platform. But and second of brands the number within important of there. we've onto company. a piece going first portfolio technology what's of the technology more piece kind that's platforms single mini So the the consolidating that inside on that We're a

do of year. couple smaller a we're to brands then a this do We're year, to did going last next of year. brands the bigger of We brands couple more and going the some

for a has So customer it's multiyear implications. And process. is, it that the reason

so complex want right It's And unexpected have risky any to you to undertaking. cautious. And a and have be we do not it and consequences.

we're do from place, and working significant happen. of see of take that very consolidations savings all make we And kind so them. cost those to very carefully deliberately When

to get And the so financial where we that's really benefit. started

redundancies. year. estimate improvement that fully do a the benefits a real and And business So where last there's a margin of accrue probably We've reduced as little single we'll those result have we'll one a got of what once in this all as are would I all of more I all we would XXXX, got the benefits included. of will then see year. little what as did E&E platform, we having cost fully I bit the by bit the various savings XX-point mentioned,

business substantial a and that's million between $XXX of somewhere money that So million revenue. is on amount a of $XXX

whether company, the the we the And whether growth to so wherever that put that's enables at achieved. savings Hinge want That's businesses those us to the plan around reinvest once into it. or are Tinder, savings that's into

is that for a all company. dollars make working happen. hard and result the the as platform consolidations, undertaking this of gives carefully us So It a to out the of pretty and coming we're very to reinvest ability significant are that the

comes Ross Barclays. with The next question Sandler from

very Great. DMA? little and in at side paying Fortnite direct have app that the Store like, based we interest public anything in least that it So statements go fees topic in Spotify where the Gary, Europe. anyway, loaded that billing in back can to for App there's are Apple on apps sounds

these just been pay changes? And assuming called you that would have million that guys the fall changes out announced So have is from that fee into that for you $XX you camp? that actually to them

would second some and fee out? similar in I kind future the look and total matches versus question if number then the kind that is, called global of what the this like state you structure guess standard, becomes a -- Google then And of XX

Yes.

reasons not. a of why, So one Cory's the or is question, lot it it's this. of included answering There's uncertainty still in around

Apple do that the calculation a the $XX as understand for I put we think get if in you just you to policy that place, number straight full changes year. million

lot I think there's a questions. still of But

raised questions them. Microsoft have raised point concerns. and Others you Spotify raised has them. out, As has

And not. so this decide opt into whether or you to have to

so. done yet have We not

we're it guidance is putting so way or this the of just exactly what all into And not still why considering which the this all works. not kind means, is

at making still we're it. looking it, understand sure so we And

Europe. proposed the in Apple frankly, proposal with of this itself And if Act Digital The the is actually from this accept to far all this, is complies assured. Markets has dynamics Commission that you complies understand that and has what and European of

And or the will months we deadline. weeks so to X get that I think itself continue over out March to that as play next

we'll this plays out. all So see how

it's will From for that side, us Apple and we that into DMA the changes to next EU. to the if has you're the even in a the U.S. if are right changes you're consumer goes that good the our door place perspective, what U.K. because fathom or lead Store on in And in EU, end the that. started it the we hard to proposed is there to a news see consumer the expected the App

remarks, the I the what my so And customers brick. we're that's first wonder, Union." and the it's same why in the so those seeing are government the same the "Well, start European in we're benefit, in EU not if getting our "Well, we getting benefits?" And in to said why citizens say, you're jurisdictions, deserve you'd benefits think You as

world your U.K. there's comes Union be to while the proposed changes Xx in in think I We've of as in in you got we just European relatively of our America. that lot implemented iOS. the rest small We've of in the the get savings the And to because Apple more lot or North the have a X currently order were an from have mind, we if revenue a so come. a probably got percentage magnitude

these jurisdictions changes those And so policy if benefits in significant really there's are made.

of So Google be, to policies very very, either geographies. I changes The is the both significant that's change are the things impact And side. as or would further think possible. dramatic further where on not benefits expansions the of those the of us really to nearly as Apple

we've goes really seen think the meaningful kind we've forward. that's And for is this we're this waiting movement long a where could for from see first excited steps where because of the we been regulators. see I this that time, tangible and to

other the is the payments stores, significant again some or us well, up very for remarks, app my in other they're for And things again to as perspective, like significant top from I mentioned going ability to on processors of which which is very as court for that open which look a other that's happened of us. have use

can we been there's have to here little next think made, what's the about lot broadly while. to quantify $XX bit have is a think little based changes What but a this. So million on the over to I that of likely pieces moving you more the more today happen

question RBC. The next comes Erickson Brad from with

Yes.

just pricing Tinder, on on a like given sort way on questions back, back ever rolling things a lot alternative any path there in if cetera, One been getting as you've curious the consider on of from is optimizations earlier? maybe et seen pricing these get you'd impact lately we've of the XXXX, just payers to investors

about of clarify looking as just talked maybe to year. the growth to sounds RPP well, maybe the half AI you And I Tinder, it think, second like the out to then And that Maybe do that bit. be is just could clear reconcile in like the something really yes, But you to pretty then with forecast. were that. not a if AI could having you

on different many talked payers per we're for just look Yes. Look, But the we payer KPIs. these of of or at specifically as those that either we've all about of I the revenue increasing revenue, levers times, moving time. all increasing focused not think sake

potentially our we on we with star the more map. made north product always be on things, a make focused there and some road because so revenue. the But ability as And have impact prioritize remain to little focus to payers on we more choices there's bit

that everyone fact happen with the is of mindful we're focused So very what's on to payers. going

in payer in road third the achieve and in We to get have the fourth growth quarter to map enough pivot payer as earlier the quarter. the to we described

year, So over naturally, the and a payer that revenue expect get to growth fourth to in subside, as all quarter and pricing you by subscribers course growth RPP of in fourth expecting the the would balance we'll to that better we're when quarter. these the the of to terms start growth of benefits the equate the optimizations

payers as business. we I will drive start normalize don't for wash not balanced this the think efforts over kind of to course and through. become to the to that's to the see So going because abnormal things healthy of year sort more go of We're

much But on. we become And see this. of more naturally the around are, goes think obviously, cognizant balanced various it as I do you concerns will the year

this morning. us to I right. joining want All for thank everybody

appreciate again much. it, I think as you quarter. seeing we're always. next right And forward at to so look everyone time. Thank we We

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

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