Match Group (MTCH) investor relations material

Industry outlook and strategic direction

• Gen Z's evolving preferences have challenged the dating category, prompting a shift toward meaningful, lower-pressure connections and product innovation to meet these needs.

• Leadership changes have brought a decisive, user-focused approach, prioritizing user outcomes over short-term monetization.

• The turnaround strategy is structured in three phases: reset (people/culture), revitalization (product innovation), and resurgence (growth by Q4 2027).

• Early indicators like improved retention and registration trends suggest progress, with Sparks Coverage up 6% year-over-year in Q1.

• The focus on user experience is expected to drive sustainable growth, with resurgence targeted for 2027.

Product innovation and user metrics

• Algorithm changes optimizing for meaningful connections (Sparks) have driven most improvements, with some changes unexpectedly boosting revenue.

• New features like Double Date resonate with Gen Z, with 25% of U.S. Gen Z females using it.

• Registration and retention metrics have returned to growth, supporting the thesis that better user outcomes drive business performance.

• The product roadmap for the second half of the year includes bold feature and UX tests, supported by a $45 million user giveback budget.

Financial strategy and expense management

• A $60 million user giveback budget was set to offset potential short-term revenue impacts from product changes, with $45 million allocated for the second half of the year.

• AI enablement is being funded by slowing hiring, with anticipated tooling costs of $5–10 million annually.

• Cost-saving initiatives include optimizing cloud costs and consolidating marketing teams, aiming for up to 10% efficiency gains on a $600 million marketing spend.

• App Store fee savings have exceeded expectations, with frictionless payment flows and Apple Pay adoption driving results.