Match (MTCH) 8 May 242024 Q1 Earnings call transcript

Welcome to the Match Group First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would 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 with have reports been set forth release in our the our and SEC. filed periodic

shareholder During measures for the this comparable are our to GAAP not certain non-GAAP we the IR discuss measures intended substitute most on These website. financial letter measures. are be our non-GAAP directly GAAP will Reconciliations a financial to in results. call, provided

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

joining morning, what much for Good believe are Gary I discussion in trends headwinds, is challenges. will and near-term and and does some our it and dissuade will Both not I know while opportunity. discuss the address of of everyone, focus Q&A. it from will trends challenging, current those on thanks today's we us call. And long-term today we

to So opportunity. I with start the want big that picture and

industry thing remains one the very today, look we dating state the As of at clear.

and real looking meet platform. For our in other on connections empower date someone make those daters meaningful people no like to a go apps life, to

someone meeting hold dating nostalgic, scene, idea that organically. of today's people still onto In many romantic

their like single where rare. and a to romantic on that someone daters Even are phones to social spontaneous lives. interactions However, in meet-cute are chances expected, navigate is apps becoming using for the their actually social meet looking are increasingly bars, settings reality

there happened a Western otherwise. this that and and our Our developed we in to so you for create That's and primary more get people aren't many the the particularly serve a opportunity have significant technology have markets people apps meaningful great may on a and date a apps don't dating to strategically to like redefine use leveraging Europe. Surprisingly, the a who as become to designed springboard not are way actively gap, today, bridge runway singles places as to are connection. dating, more meet why massive aim safer growth, for meet-cute apps still creating who find many all U.S.

few made progress years, the Over we've meaningful last Match at Group.

well-defined the to product initiatives. brand be to worldwide continues each dating iconic new brands have marketing and executed generation. Tinder against an and Our entry point for

been tremendous on has a standout, for get their intention on great brand daters based dates. growth Hinge to demonstrating promise out

billion well great We very to the thoughtful its $X that ensure resonating are more markets a to than that on community generating help well on revenue. the that is delivering about way user entered and we're we've in Hinge is confident business building ever truly our in mission. and being experience

our within at is apps potential, on want platforms very focused gay In and we new have well. select tailored out particular, see demographics, call we and brands men progress emerging several really real launched where these strong which Archer, the portfolio momentum. demonstrating on We've performed to

and that more it. loving strong hit growing more, recently app up digits, ecosystem since Engagement triple The a last users even we than is are have who downloads it indicates launched XXX,XXX year. which

engaging to year. most beginning make of this this I marketing and the it since dynamic that also user want The investment app achieved we've has significantly to without innovate community. point revved the up the the continues team Archer our increasing and out for to in growth experience

fantastic most of brands. talent deploy is that add working and Across believe has continue various on we Hyperconnect The to other efficiently. more the with resources will our team continued projects value portfolio, businesses to we've to our

Now a about everyone that to active monthly very of our remind I businesses other want and users, different lot questions platforms. from we social get approach is

see to focus We on get our great connections earnest then find a single and by who make goal intentions of and our off real daters users Our date attracting to their want is in who experiences. satisfying are apps. real singles delivering

any never been we vibrant. and scale the international ecosystem keep it's Tinder's app, dating reach critical other has matched that by and

moderation year, users not and purposes. For are the example, intended which changing enabled action for community Tinder decisive last who better its removal its took by on practices of guidelines mid app the

actions the are interest to and better accept the in create believe benefits While X these to the so months. Tinder's past the the to daters. these MAU some that term a declines undeniable, like the contribute actions over fewer are brand and best did long-term we improvements ecosystem Tinder's in of MAU success, to ecosystem willing our outcomes of short to are for safer We

especially Tinder, clear users, looking cohort, apps. Gen into deeper dating some more loud their and heard have Diving are we that the from Z for a little

adapted generations. We have and best have we and our time, And business consistently long been serve understand the that expectations recognize to changing. in apps offerings needs a are of we this of different

to in end the working product. Tinder a to have. users we these of that ability and the the evolving By execute expect is improved year, significantly incredibly against to have team's their tirelessly expectations I'm strategy, satisfy confident

revenue. on negatively the of price its its improve pressures new is doubling spending, among Tinder's on to ALC younger carte la Tinder's down current impacted have at base, features introduce consumer efficacy efforts affordable discretionary The points. Similarly, a team and especially offerings user

by year. in improvements the see the back to expect half of trends ALC We

at profiles, the deliver we of post-match the make more Tinder with promise. outcomes, AI, quality to brand we believe working improve on innovation, platform features matching point modern to The to safety can of generation to experience the every the entire improve dating and and their We the new work have Tinder satisfy know experience. journey daters. team every Through of do is we especially

team our is and expedite to advantage relationships better Tinder's dating, in asked these central to with Tinder's technology. and I've dating Officer even of take positioned advances closely app more no given team about his underway. are which these product there knowledge efforts, Chief work Technology to all vast innovation and And scale

become an profitable over highly has industry-defining, decade. Tinder past business the

some the innovating have points. user to pain We of solve been

As that a a we will come result, have enjoy. healthier, back. experience and, momentum satisfying valuable I to more confident daters will for more am ultimately, And Tinder's

to opportunity determined stakeholders. that of the have we we teams to our to and in for get believe level market strategies of all next place growth, We are and and that real deliver right

emerging plan for Tinder, see executing our on turnaround growth brands bringing We at continue central runway our We're significant to and to portfolio. teams vigor are and innovation. innovation product Hinge our renewed

is to ways excited are this We as to day. giving what people every new us motivates work, continue exciting connect

let that, turn over with And to it Gary. me

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

in year financial expectations. results Our to of coming ahead start the performance with FX-neutral strong business demonstrated our

total We the while up QX. experienced declined we of Match million earnings FX was of time flow in free grew payers X% last $XXX than X% generated our Revenue headwinds FX payer the year-over-year. million in million, Group's revenue anticipated XX% in We XX%, $XXX per year-over-year quarter. call. at and neutral $X cash more

quarter. direct FX ahead Tinder X% revenue XX% likewise year-over-year, revenue growth, grew Hinge expectations our XX% direct neutral. second of for delivered year-over-year consecutive the

up X%, XX% year-over-year, respectively, Emerging FX and Evergreen grew although direct & was neutral. and declined direct FX neutral. revenue X% Asia's X% Asia Brands year-over-year MG MG Azar revenue

BK satisfy growth, The welcomed to as Archer portfolio. audience. grew show direct We app focused continued collectively user continued demographically target revenue emerging year-over-year. the to strong brands better the to experience apps mentioned, to XX% new some the evolve E&E and

There only QX and quarter, rolled like-for-like funnel we $XX.XX, top Tinder was QX starting to stability weekly increased packages U.S. better we factoring first $XXX in by out X revenue in year-over-year X% a the that XX% late optimizations driven on due the of direct users in of effects RPP with basis, price Tinder the year-over-year the was down XXXX. million, exited countries. that new at at to the

million to are a moderation Tinder's decisions Tinder decline enable While practices easier change monthly the who on elimination to last actors and the policies starting users quarter, users also in the experienced of we platform. summer users MAU. and active Tinder approximately of to on made not engaged to in least app in led X some the the decline bad really included an were who This connect decline

already this will believe but We We comp fight that we'll fully these that of to engagement are metrics we signs in anniversaried the all improvement have beneficial seeing of end health, it we track. year, by and are XXXX. overall ecosystem key actions the

year. ratio points of Tinder's highest levels, in QX, monthly example, versus its some users users of improvement active to active XX% north basis XX of of well QX reached last an daily For of

this believe we MAU, the right for to the impactful decision Although was ecosystem.

expectations. million, to and declined just in sequentially, slightly X% year-over-year than payers we're XXX,XXX XX down our just Tinder's QX under worse

at subscription the in at While increase XX% quarter. strong revenue down which growth the Tinder on due carte was primarily Tinder a pressure to in year-over-year continued in la experience RPP, to XX% was revenue, year-over-year,

The user that and base, has becoming discretionary other lower the for a believe younger late. severe been a now, revenue average consumer on of in stems been volumes, to of part a user declines its continuation reasons. in while among weaker trend ALC We spending decline among in from purchase is going ALC has growth due weaker but more

was revenue XX% million Our XX% of growing perform QX. $XX to to globally up approximately $XXX up were was to Hinge QX. well. English-speaking Hinge's core both European direct nearly in million, strong downloads Hinge continued year-over-year be markets, XX% Hinge brand in year-over-year in X.X Western and payers while RPP continues very year-over-year.

believe above efforts, active We're of ample business. to on for is very to room that $X give a payer The and user trends, stages is monetization users growth around become monetization payers opportunities runway as early at penetration in the expansion confident We with billion Hinge outlook. revenue us defined that Hinge providing Hinge's just monthly global its expansion. Tinder, long-term optimism half track

for up cost app result Hinge, Group's QX increase in $XXX in of a million OI income as a Match year-over-year Group selling $XXX by of marketing higher year-over-year increase AOI and in store the each revenue expected benefited Operating $XX from Match or million increase an X% due and growth AOI million, XX%. was margin of and to a in year-over-year down for revenue XX% at nearly XX%. partially QX an fees. Tinder was expenses of margin and X% QX, offset

and The income high declines increase forfeitures at was SBC marketing certain at spend in support primarily Operating due unusually to in activity Hinge offset by further factors. increased brands. other other was product spend the brands, by impacted period and multiple to prior hiring emerging expense and marketing increased efforts, Tinder, selling development in year

employees to new which we approximately awards SBC of controlling equity the to flat awards year-over-year, on was SBC level as expense. While period the future of rose, expense grant value focus employees, impacts

due Additionally, increase OI year-over-year in internally a in placed was at Tinder by software expense impacted and in developed to increases service, Hyperconnect. depreciation including XX%

of of cash flow, cash trade a We on share of million on delivering million. repurchased our XX% in of commitment approximately X day basis, to than by represented share an our roughly QX repurchases. more of deploy approximately share count free our $XXX our a approximately $XX per at This for our deployment flow free average shares XX% price reducing QX

remainder to remaining leverage below returning flow our buyback of XX% authorization, at shareholders the expect $XXX for least million on and net continue free at share our we to the our year. cash X.Xx With of our target

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

flat up Tinder million to be We at $XXX FX in expect X% up year-over-year, neutral. X% to QX, $XXX to X% revenue direct to million

the are the year, growth of growth we and The user direct impacting is QX plus various Tinder, headwinds effect monetization implemented target the in at revenue starting Tinder's for ALC of rate, anniversary which late revenue initiatives business. of our below last

features initiatives revisions team new Tinder is to and include to offerings. existing strengthen revenue These ALC growth. implementing focused The introducing on monetization initiatives

the revenue ALC addition product to our significantly work to of are improve in in app being year-over-year expect the the and to half We of the experience the initiatives better this back in extensive year. done These to health lead ecosystem. work trends

improvement payers a leading compared expect similar QX. decline to year-over-year We trends QX, modest QX in payer to sequential they in as rates at Tinder to in did in QX

continue payer additions QX. We Tinder in at sequential anticipate positive to

QX, of year-over-year our million revenue to to other up brands, $XXX in $XXX $XXX revenue QX our X% to X% XX%. Across we million direct year-over-year, million, growth expect to of direct expect to other FX we Hinge $XXX XX% neutral. million of brands, deliver to X% Within XX%

in margin million Group million the roughly Match XX% of expect $XXX year-over-year, ranges. the We AOI flat midpoints $XXX at of and QX, of to

expect at than quarter, E&E to higher and spend to year We due $XX Hinge, the million overall be largely some Tinder prior marketing QX in about brands. increased spend

app We in store at expect opted quarter we the so forward, policies app savings million further into policies. Apple's EU per X, of no IAP store new fee in least April on going changes $X assuming

We're making requires Google us user modest us, working well. to Google, is this agreement with creating billing, to our developer-only choice we're and to on This adjust as which Google complying reality, settlement end is billing but brands. with their across our and/or for some change adopt billing conversion headwinds improvements Play new

they single-digit low the trends product current initiatives some although beyond QX year-over-year revenue our Tinder, be latest rates higher remaining the the currently Tinder quarters deliver ALC for direct growth expect revenue at other XXXX, expectations our Reflecting and expectations. could or or if of of at trends improve we

This anticipate XXXX. to to leads year-over-year mid-single-digit full outlook for revenue for updated rest-of-year year Tinder low us growth direct

for the to lower other revenue stated year-over-year of there near this, growth our end growth range, Hinge. previously the material X% a expect to of unless particularly year, total target total over-delivery full we expectations is company be brands, Given our by revenue X% our

Tinder both in X expect whole currently to For the point year-over-year the company, the back of we be half FX a year. about and headwind

XX% margin in of We least for focused XXXX. on remain delivering Group Match AOI at

appropriate. in innovation Tinder, product at continuously marketing as in and new evaluating disclosed and previously experiences Hinge and adjust investments are the will We

at least outlook is the we of flow We free Group $X.X of investment and nearly of Our our best XX% billion the return make remainder cash generate with Match capital. we remain for price, stock in the at our that capital current year. cash for to flow to XXXX, believe free utilize expect can our shares our for

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

first The with Benjamin Instructions] from question Black today Bank. comes [Operator Deutsche

pertains net today. Great. giving to this you're seeing steady can Tinder adds us trends the will hear to there what's decline we're in It'd that that is as great be payers And to that that something quarter, confidence conversion is despite point optimism? return growth in the you you third maybe it to sequential providing seeing

the for question. Ben, Thanks,

things. want a we're out all, Tinder, in I of seeing terms that of First at point trends just to few different

in result So pricing weekly conversion part right? sorry, conversion, improved to that has as subscription pricing packages, led -- of improved that, we and all, and we've because that's first sorry, dramatically, lowered a are lower -- raised of prices, out we rolled has which,

But they're for the packages in for shorter those payer there subscribers for the are up so a time. signing are less subscription weekly duration period, count that

inside the of one that's of going that's the on So trends business.

have also We user declining base.

have We declining MAU.

payers need generate a we conversion more so on to We user And to need smaller base. harder. work

So happening. those that are the trends are

we in about at basis, the X% we and in similar expect quarter. decline the on first quarter, If payers year-over-year a how talked a you look to level payers declined the second at payers

you'll if Tinder and need the I you to math, conversion to or sufficiently the have bit in improves to X%. see product we little planned think do initiatives a that the that trends the X% user X% that payers decline year-over-year at improve we improve

in improvement at the show If sequential you Tinder. get third would you that payer math happens, that the quarter

that's so on. what And focused we're

initiatives, that QX. enough work up should product to by sequential the improve I drive in think payers we see have enough improvement to conversion on we going MAU, such

count, point sequentially, result changes, of had we've would that the cetera. now, It's that is And lot little a the on sure, to obvious, a noise getting actions think created payer we've while. make probably in especially a the other last want as et Tinder subscriptions, thing the taken of is of which all of weekly for behind price lot out, right? noise just payer us largely We're I I but

were happened made were in last first and the late that changes really which the big the affected very year second of The U.S., quarter in quarter. starting significant,

smoother, easier So information understand. get lot to should payer to lot count a a start the

be less There forward. changes will significant going

so much I metrics clear people. be for will the And more think

well. So as to looking forward we're that

The with Morgan next Stanley. question comes Feather Nathan from

your generation? about your how do studies incorporate from any you rest you especially for draw the case at at with some thinking on the are to Tinder user learnings where when there for brands portfolio, And internally from So to today? the reignite growth around that now Are Tinder, of decades? brands to next successfully is evolve X appeal how product

that for Sure. Nathan, Thanks, question.

consistently innovation that this the great true on We lot of demographics across impacts can We've know seen to the products new the show portfolio industry. to product material lead examples experience. and total that We have appeal evolution. a expand true user can of that

than brands, existed which a of years, major portfolio for Our is XX-plus have more benefit.

introduced yet late with dating. OkCupid or was for growth have ago, the Years Hinge's friends on gained like Hinge Match.com friends it based traction embraced When Hinge. hard launched, paywall freemium eventually, model, business, the connecting millennials which who But stalled. of not

did an are which product around was to from the on creating they the dates that's tear big full redesigned to great focus Hinge really app down, And designed now decision and a world bold ground deleted. flocking users a be to and So in tough Hinge. up

about much it women opt-in Tinder, that And experience if of category for unprecedented the was loved. the they attention but the a a double also Swipe, mobile phone whole the an suddenly in that created you talk took for control category. massive who are was more look at the everyone innovation and Tinder We changer receive.

is daters lessons doesn't from address what we've work. their We're learned What of and know what these So works, our also listening young to needs. all change. we working know today but we to and changes to the bold that product that drive portfolio users that real have make be to our across big and from we need learnings need to the

We massive to people little to can't impact. product products, them expect We're and the changes motivated we a and have capture building love have across the entire make ahead. launched small lucky that company because super are opportunity really

full strategy, going we're it's to So we're and work. confident our going steam ahead on that

Gawrelski The Fargo. next Wells Ken from question with comes

guidance would get maintained lower toward It expectations. net for more despite and here revenue the year, the be not take come marketing you in Tinder expected this What we margin that the You in full more end previous should of outside are from to point? seem invest XQ. aggressive here? to opportunity Tinder growth Why missing -- back in the at payer the

Ken. question, said the earlier, we Like foremost. resonate, to really product and it's Great first that experience needs

of While combined growth, product users. be experience a marketing with is funnel with it of resonates needs top component to evolving that

your is really to payer compelling don't innovation. The product reason question marketing really increase from achieve growth. answer to It to a that see come needs to we

the that daters. improving brand making for Our today narrative Tinder mind and Tinder much about of is is marketing top more sure

While to impact we And spend is expect users, marketing lever remember, not more a growth. it's Gen do marketing we positive to direct Z, particularly can Tinder's and not this women payer short-term drive on have pull and some response. about brand

So simply hit to just spending the it payer for quarterly number. about Thanks question. more isn't a

with comes Oppenheimer. Jason next The question from Helfstein

you did elaborate. but I'll of Maybe ask, some this allude maybe and to,

are to -- revenue specifically February driving X% quarter? positive -- So the versus or as since in turn to prior the to what's which expected growth still to or X% mid-teen the revenue Tinder, mid-single-digit low low low at changed the subs third is mid-teens to

just about a platform, Just done elaborate the obviously, things safety talked of of you bit elaborate. kind you've little but more. to I the mean, some

metric. at have in We'd So take the payer like Sure. right? we're X% things bit, have one, and see first something of obviously little a improvement mean, had negative come that, year-over-year a couple changed. I down growth quarter, I We the expectations Why that Jason? don't in shot to predicting our a similar.

we to in that lead As going mentioned confident to things all product initiatives the have on that quarter. we're will the Ben, I third and

see. did to I really call. So of really sort since changed need earnings things we our have And that's point last specific what two that would we out

Tinder. talked we increasing thing The first environment that letter the economic a the thing, ALC bit about this first in this remarks, and at the little seen weakness we've is and in

on purchase was And a the so making volume because is putting pressure previously. lower user that's it is revenue than that

So revenue initiatives and of resolve revenue, a months what we ago. pressure that's to but have we on driver putting try expected place to that, in more than that's X critical

drive the then conversion, And because drive and talked to I we about MAU, how have initiatives need growth. declining to we revenue we really need

And delivering in provided have across a those been than a little have in ways the February. going those different so last but when world, of we the bit what less outlook number expecting were we we

little some So as see would we obviously well. work those seen. initiatives like That in pressures And to a need of bit MAU we'd help the harder. improvement to we've offset

bit So have to moved headwind those some we'd of versus that the more there, and severe things a like really the been monetization degradation, what under ALC are our delivering have see. little that fact a initiatives the bit

we if improvement the lead growth Ben, to that said still I will as year-over-year in in growth, payer payer QX. can get to But sequential modest

sequential And in doesn't and year-over-year payer of itself lead to revenue so growth. growth

see leads revenue year-over-year per payer combined. We growth That's to what growth. to and year-over-year payer year-over-year growth revenue need

make is wanted sure to. that's we so to need what the way working we And

question next UBS. comes from The Chris Kuntarich with

efforts. Great. now tweaks product pricing, towards your conversion focused that focus events. that be Maybe more year product should on more Last around and seems to shifting one was driving be

visibility monetizations tweaks into have the ahead year Can conversion-focused about talk product you you to last versus just us you. from the those of

revenue growth Last how implemented it. one. initiatives, a team do to number well, know really of short-term at year, we monetization have That and we Tinder. behind we a that drove which great take I'll

Tinder, is sustained more and a the certain This achieve at Gen to for satisfy need really undertaking optimizations monetization, product implementing growth growth than significant better reimagine to long-term and long-term less much initiatives. women to we But Z. and

growth, we a initiatives really right improve product we that the the and series deliver This strong experience, time. team focused on of in will drive that We feel about. will this. and have are user And confident place, payer to we growth growth revenue over planned we're

be tweaks, about talking So for we're a strategic Chris. question, what but Thanks really clear, series of that a to conversion is undertaking. longer-term not

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

AI seen tests to like I'd summer. you've the first early Great. photo the the learnings wording little on widely just the the from about bit Tinder. Okay. it a in And think talk launching of any ask to AI letter about and selector the was in more of I

a on broadly curious of little you Just around AI time summer if view around the bit more or had half mentioned. your months. And details then more year line, maybe if in that's on the the BK the here, first development later company just

a been just of a road has know businesses. more how lot Hyperconnect your apps. time you're on And Will got a But Wu map about specialty of I his of products there. a is AI-based thinking attention, of helping broadly, has So for focused suite across AI lot sure I'm this. lot the

and I AI we'll really to scalable. Hyperconnect and talking is question. with this feature conjunction we photo that love about team our that selector, closely for with team great think absolutely work Tinder create in Thanks our

when daters is And back to there. the step one makes we to apps, dater of putting profile. decision themselves go our do really And to other to they're dater or ask download a really that create Tinder a experience, a that first out

That be entry. immediately a to can barrier

"Okay, it and launching say, users AI But a person using we're and of overcome create can that a air up this now, kind right we our the I'll can that their profile later." of do Some barrier. help put now We're and hands summer. testing in

profile. me, I I I selector building for if my photos really where and showcase. of Now know start thought then to I've minute, XX,XXX XX it goes through photos and all personally in over have ended wouldn't my on even tried phone, were personality a myself, and photo have up I than that dating to wouldn't showing own XX,XXX less chooses The magically my photos parts actually

love I'd is Swift to I much headshot, my they went stick dog. probably doesn't would this an a my on concert, on the was photo, XX I Based really show my corporate If photos Taylor it just and tell which picked, okay to I that but cook, my that me. doing about own, love profile

If can lead better profiles, better matches people and get outcomes. help better that believe to to we is this better we going have conversations, to create which

This for expand this throughout power Thanks just is and that AI, plan on of of dating the question. journey. the we one entire example to

from with The KeyBanc. next question comes Justin Patterson

just Great. ask wanted to Hinge. I about

had outlined the You appreciate wanted I path to dive the letter, around in actually $X to margins billion the that. in that. so

Just as billion about think there? see you scale how that target, moving do revenue towards potential $X we Hinge margin

those to Are then where over get in you are past, that going Tinder know margins today. the on closer corporate perhaps you'd an Hinge's signaled to update time? And just were the approaching maybe I average.

So still curious if that is the case.

range for are expected the in percent Thanks, the high Justin. Why Hinge year. to don't I So XXs margins be take that?

and of they're where last short stable year. they were number, the corporate about with So

couple the would out I things a really that point are on Hinge margins. affecting of And going

the investment The markets a in really focused making of Hinge first is on. marketing we're significant is thing across all that

there's significant marketing a countries. effort to side the markets, So awareness, But newer one. every brand are build XX going on on, especially making there these single not European we're in

generation revenue that. the And lags

start So it's year, investment, last revenue revenue help an Europe and generating the grow. to this time. for and did the more to generate business we over will that than year will leverage continue from We're operating

going that's at time. thing lead to over one that's improved Hinge So margins to

people is a in thing big there. investment we're second making The

to to in build a headcount, and better expand better continue out to product continue development, We product experience. particularly

that is operating over to also upfront, should And investments those which leverage time. but lead so investment revenue happening should lead to generation,

marketing, And company will as margins the making we're in to confident in that so start the pay will investments the I'm levels. off, that people scales, and Hinge investments approach

good of I get to there. have line think we sight a

and to. scales how margins on going Where exactly business that fast land depend Hinge's how to is big really

more that the it I more margins confidence scale to achieves, have So continue the will improve.

I think company there's level. to a get path

what we'll that I see that, rate path and that -- higher, be out. that but be at could they could to how plays have a they plays think there's that out

Hinge high tell you in sensation Hinge than dollars was awareness more operates. burst where have the is that viral a marketing including after big the dollars and It all because spend such Hinge, margins, does, would brand it, Tinder in marketing to came when onto it investing Tinder I that's of do. had markets it has that who It hasn't others a the had level scene. to

I Hinge always have So margins going Tinder's that level. is are think to below

more that spending we at For bit marketing are Tinder. reason, little a

I that, had, margin a closing is And margins. somewhere that so be Tinder business, gap do is that little around its will higher-margin Hinge that's margin. Tinder believe higher -- is the company but as the that bit Hinge dynamic but business, a But improves we the

in course, And that be fees, all of app assumes a big no well. change margin could as which, driver store

how we'll continues mature. those all see dynamics the are Hinge grow that as plays out. I see But So that to and

question from with The Carpenter Cory JPMorgan. comes next

could areas margin reduce expand are despite how And you've any revenue better target to planning there Gary, broadly, the this identified on incremental more you or maintain to outlook? your costs? XX% you're year, softer

to take Happy that. Sure.

margins, And in total X% the to first year-over-year low all, the end that. provided we we I even company early to So of revenue an X% growth. of year, would deliver were XX% prepared say, of at outlook

we So we're XX% revenue performance our to stated what previously this toward a lower plan get even end of of company the year, terms thus if the range. far happened total in have still to margins,

some contingencies, we I'm and to additional this deterioration level, margin have need happen. there not take expecting But were actions. obviously, further prepare to for that maintain to Now if we to

impact And question, revenue are would to place look so we things that the first don't your significantly.

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judicious one. on So return across marketing large over investment, the marketing businesses. have a We try very marketing with We year. course. to $XXX of monitor would for very million budget, that a for we the be Obviously, be

again, to the extent knock-on if adjust of in to can there, lot to we generation could and nimble. But the marketing we be make And we have very marketing. But don't effects revenue adjustments news good lock on we there a be we can commitments. is,

we're marketing think on pretty the I optimized side. well

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they're about then to are a pre-revenue. earnings because call to a are bets in the and critical investments margin innovation aware, Those right got tend and early years are going those we're people on dilutive the that be future growth. making last very as now, we've in on we talked And lot businesses of driving number that

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and tougher tougher And make. trade-offs deteriorate. those have they were get that obviously, to are if things So you the to

generate the further trends, -- really the one growth improved take any cost avoid to to actions. revenue we're and So job need is improved

Ygal comes with question from Citi. next The Arounian

follow on Gen Z. to product women the around want side I particularly up and and

For out and And women, here you calling on lot better call product you're being recommendations, a outcomes there. about the bolder product talking better called the on out side.

on side? Gen the around expectations help think just what What product and bolder about Z understand are you should can the So we women the us how that and means that?

some the and side, expect that? how I not that time how year-over-year, about, safety we MAU you the loss. up the impacts you think we with losing the should see but should and drive improvement of comps How over on cleaned understand MAUs, did then that to as of And that, kind on

They Z women Gen experience, in women, and need top women's is respected when our apps. feel empowered our priority. particular, critical literally question. for and and most all know they're that on are dating apps. We Great the to demographic

for of have to initiatives matches. a We they're getting series improve great to outcomes women make sure

negative product. remove they're grow in to not active, very a aggressive approach actors, changed get or had opening we who social community we bad and from on we we Now of Whether and users. they trust Tinder in remarks, removing on very perception their to my Tinder's the But media the guidelines impacts especially have from trying there Tinder people following recently, the user as weren't side, date. to to safety letter mentioned reports when

hard made Tinder think and These we decisions and team And out million are Gary trade-ups the in and the this for that a as if it healthier meet right but and So MAU, call has said, yields we them X we ecosystem. evaluate we're more important about to continued real was authentic change. it make getting life. also important, lost because users to it's great delivering matches

Tinder believe great will to we it's creates will that increase to get give an to start change. of who very We with MAU, photos. I'm is face we profiles. authenticity going the for extra because likely think really weed time requiring to the going it this people's are to date it out ecosystem comfortable But not impact you example. that actually some as people there also or be

photo easier, that this make photos impact is for However, the believe user This and as think I Thanks talked test about wider is will something we will but we'll and ecosystem. obviously the monitor, earlier, MAU. experience call right minimize help selector and that the on for question. AI selecting this we the

Jian The next with Evercore question comes ISI. from Li

couple. A

payer say, the you're Are improvement purely off, guide. macro any First, that development? if this persist? you what can driven talk optimization came in that assuming today product macro assumptions you in has on growth And about pricing to seeing

just action any can on you've interesting This also is in the -- driver conversion? year, mostly -- And Emerging and E&E. if given year? your particular double-click to think offset or of on price next call-out from about potentially Archer, taken? the comments we And growth general should this what for on how letter Emerging Evergreen the in next for starting one growth product Or you user coming

Archer, just it's me pre-revenue jump take let first all, a and of mean, of those. would in point business. out, I I at some So

user seeing that happening So what's growth. is strong we're really,

to point yet haven't the We gotten where we're monetizing that business.

can the users, daters market. so enable sufficiently monetization out the have We're key can monetize in come think grow point, to to that there's -- I is thing initial roll term we on because getting users relative is enough some that liquidity start in features. short if we to it app, to to the and that where us

part that the is So of strategy.

think stacked bricks And asked about about, of series would as Emerging top brands you the businesses, I on are as of that each a of of other. series a kind

we're in more because we're more revenue of focused stacking and demographically So and portfolio, we've and demographic bricks more apps of number apps. a got generating more that

those the community. So have ], on one Hispanic one focused on community, of all focus on have revenue. the And are Asian one of on Archer equation. piece stage, we that growing one the generating the monetization community, demographically and to a community focused [ gay a we will male focused as we of pool obviously, generating apps the the Black And that's get revenue, bigger tailored be

the basically able going brand. we And sort so consistently level we're Evergreen to a enough businesses offset moderating Emerging now reasonable revenue or to decline And the at because generate in of declines we've in we're on got that brands of managed see the those Evergreen declines managing a decline. the to brands

the whole. in brand as happening what's that's a E&E So

a and estimated $XX to do cost, as And drive strong in we as there, what possible and platform we've trying We're redundancies can business. efficient reduce out common taking as margins tech is significant be million. we're a use of that as amount

if from be should goal start to E&E have to a in will that the corporate grow quite all we'll attractive the fruition at perspective. so That's businesses. the margins And that again comes business modestly that

you we're about a macro trends, change the in ALC. think is asked I what really significant I also macro, the Tinder and which assuming effect on is not would having say question

it's where that's So relevant.

other macro by But there offerings, changes trends is the different not to offset In the those rest things at to together offering of the significant the price offset year, things the Tinder ALC, the what all assuming macro seeing. adjusting we're offerings, points, headwinds by we're adding in ways we're by find trying to do of for environment.

before. done once this we've But

started them. economic a so adjusted see If we because We you weaker bundles in a remember la some back adjusted way expensive were carte were when, merchandising the at environment, pushback more offering offerings and way to our we we we on merchandising. Tinder

of we're macro at the those demand what improve tougher economic again how And think we we so and changes we adjusting a current users kinds the pricing, offer adjusting we and climate, especially cater adapt it, the offer Tinder. can looking to to younger similar to at among environment, better

your to responds that questions. hopefully, So

James question Jefferies. from Heaney with comes next The

in In of slowing declines the reiterated growth and back in in sequential the year. payer letter, you the QX your confidence user half

imply would talk this about QX you payers what things can and curious just I'm So QX. that for

Sure. the to take James. Happy Thanks, question.

related I as payer And improved it so to we're adds, as about year-over-year talked the as sequential we're year expecting -- expecting goes payer growth QX on.

critical drive it's that generate through to We haven't MAU and/or seen we yet, but product that that their conversion improvement. initiatives

as quarters are we need improving path to growth to the -- we go year-over-year so payer And on. be the on see

beginning have payer tougher. at of think in growth to get to the a we year path that still weaker trends the obviously, bit but QX, I year-over-year a that the make path

more outcome. at that have need QX, there us and to to get chop wood we to initiatives Tinder to we so And by drive

but that I to the this, how I'm on on do talk confusion be new say the between payers really about hand, users explain want I new and some hand we which at sure so seems want users to to there other terms. those you registrations, one use sign-ups. Tinder, means understand We

at are that, Sometimes, for as That's used reactivations. downloads substitute users a Tinder. new and

And critical we which at all to we of MAU, is to trends. able Tinder, about or improved referred Collectively, is be also talk user to drive that users here. and growth that

on focused very we're so to initiatives do And that.

will year-over-year ultimately platform, we convert enable They're Tinder users or as There's users at in users, payers. collectively in the what is payer a come us and Improvement lag, drive on users into sign up. payers growth.because, obviously, but to new them people improve.

related. are things those so And

then and we we get QX we're should won't payer growth next improved can see well. that but to through cleanup, all the this as year into product et the half our stronger initiatives, end It improved to in go fact the of year, in cetera, payer believe quite growth generate user we So app, it back year. going very of right QX positioned of growth into now well. as Maybe ecosystem at get may the

longer-term initiatives have improved And as improved growth conversion, and, business the in start bodes so revenue driving growth we as improve the should therefore, user trends as well for we see the we that well. growth and because payer to

the we're that what through strategy X-prong on. Tinder executing to the achieve That's goal. That's trying is

So hopefully, your James. addresses that question,

we have more for one maybe think time I question.

Bank with next America. comes The of Nagle from question Curtis

headcount Terrific. where coming Maybe mentioned see Gary, and one growth? Hinge. to we'll follow-up. real in just one you business initial just of quick parts a then other the Any

to you ] And on cannibalizing [ of risk, price ] sounds have Any going you're ALC features like ALC revenue. have points. one It (sic) guess, It then could some offerings that been more [ (sic) in ACL I just take right? ACL at subscription products, the premium. affordable to

is in carte the the half of And a back in the terms assumption what just in from la growth then contribution of year? terms of revenue

answer to don't that lot I'll of a time, we quickly. have -- So just but relatively try

headcount, mention product significant Hinge On making development. It's are we did the I there. in primarily investments

that We side, the goes will do company overall I as year headcount on to plan moderate but on. the investment do have a the think significant

you up If a SBC the first But at effects some quarter in there year-over-year. costs, are things other will look that think lot and they're headcount I normalize.

as abate headwind And that so the will goes think year I on.

and a Those across primary really the There elsewhere AI margin we're in company. some little bit central headcount, the and efforts. at about where in investing where being is additional there. headcount. areas place is some Tinder investment we're We're talked consequence the I are primary the judicious the in investing of Hinge innovation

of So of one it. kind piece that's

is carte subscription. potential that la we for cannibalize carte a to a On cannibalization, la with. the a the There grapple risk that factor is

cannibalization. feature the And that carte new need sure a out la manage so do we to the every we we we roll which understand test on and to side, make

comfortable on might you on overall but a that, doing If side. accretive, still we're better generation knock-on it's effects carte subscribers, but the see revenue la

going So critical have, and skill we we that so. that to that's continue do balance. that we're something a It's to manage

the half lot carte adjustments We for a have and of in pipeline Tinder in of products la back a the year. the

back are where at So revenue or carte in growth I'm improvement from a we the la the half now of year least. expecting

I the that to carte. Tinder's tick think a percentage It's should will think increase well as la be up we're dramatic. la do I we it start to of probably don't carte generate that a revenue around XX%. from growing XX%, XX%, And as

year that's these as at back carte of So we out what the initiatives expect to the more of half roll we in see la Tinder. a focused

addresses question. So your hopefully that

call the out of we're but over turn back think I BK. I'll time, to

much Thanks, Gary, thank and and questions, your thanks, everyone, appreciate you and your for call. for so today's interest. Gary joining I

We Thank We're you, forward and a have to all really excited ahead. the all. and opportunities about we're the the continuing look building conversation, business great day. that

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

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