Match Group (MTCH) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded expectations for revenue and profit, with Hinge's direct revenue up nearly 50% year-over-year and Tinder stabilizing, offsetting declines in legacy brands and FX headwinds.

• Net earnings attributable to shareholders were $133.3 million, with diluted EPS of $0.48; Adjusted Operating Income rose 2% to $306 million, while operating income declined 5% to $205 million due to higher expenses.

• The company is exiting live streaming services and sunsetting the Hakuna app, expecting $6 million in related expenses and $50 million in Q3 impairments, with an annual revenue impact of ~$60 million.

• Workforce reduction of approximately 6% is expected to save $13 million annually.

• Nearly 100% of free cash flow was returned to shareholders via buybacks, with $197 million repurchased in Q2 and $395 million year-to-date.

Financial highlights

• Q2 total revenue was $864 million, up 4% year-over-year (8% FX neutral); H1 2024 revenue was $1.72 billion, up 7% year-over-year.

• Hinge direct revenue was $134 million, up 48% year-over-year; payers up 24% to nearly 1.5 million; RPP up 19% to $30.

• Tinder direct revenue reached $480 million, up 1% year-over-year (4% FX neutral); payers down 8% to 9.6 million; RPP up 10% to $16.61.

• Operating income margin was 24%; Adjusted Operating Income margin was 35%.

• Cash and equivalents totaled $844 million at quarter end; net leverage at 2.4x.

Outlook and guidance

• Q3 2024 total revenue expected at $895–$905 million, up 2–3% year-over-year (4–5% FX neutral); AOI expected at $335–$340 million, margin of 37.5%.

• Tinder Q3 direct revenue expected at $505–$510 million, roughly flat year-over-year (up 2.5% FX neutral); Hinge Q3 direct revenue expected at ~$145 million, up 35% year-over-year.

• Full-year 2024 revenue growth expected at ~5% (7.5% FX neutral); AOI margin target for 2024 remains at 36%.

• 2024 cash capital expenditures expected between $55 million and $65 million, flat to 2023.

• The company continues to monitor macroeconomic and FX risks, with no material impact from OECD tax legislation.