MTCH - Earnings call transcript Q1 2022

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Operator

Good morning, and welcome to the Match Group First Quarter 2022 Earnings Conference Call. Currently, all participants are in a listen-only mode. [Operator Instructions].

We will be facilitating a question-and-answer session towards the end of today’s call.

As a reminder, this call is being recorded for replay purposes. to Investor call Relations like Archer, to now of Head and would turn over the Bill I Corporate Development.

Bill Archer

and CEO, CFO open it operator, be few brief They you, good for then This a everyone. Thank we'll and call will led make by COO, questions. Shar and and up remarks, Dubey; Gary Swidler. morning, will

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

release With reports with to Some been risks I'd of that, Shar. these have the our earnings the filed and call SEC. set to our like turn in over periodic forth

Shar Dubey

Bill. Thank year Group last year. and than the our for at beginning the in you though On in comment you, this disorienting a a today. a bit world Feb, Good call for Match morning, made of And been different quarter, coming remarkable that has in joining out call very many thank place been even I broader has this the is world of first ways, past times. the the

need. with a in the the XXXX quarter in serving the is business grew our category not not It that is seen time. that our and our dollar U.S. makes strengthening the what against And revenue has model online resilient. is is strong Ukraine, and steadily as user portfolio. unique such built a growth we not often It this business despite in first foreign and fad. of in core say haven't COVID-XX. business Our at all, war position immune in I to reminds this. headwinds and a This category business overnight fickle lingering the XX% dating across Online is a of grown the it dating an me currencies levels variants so strength macroeconomic over while in

again. at human of food, is to not market The relationships you needs, need and If go right ahead shelter hierarchy is dating dating opportunity have for have there using and while relationship. connected and is away. for going XXX look Over been above -- slowly. markets in love for but year ever But million apps There's life is dating The use security also be across they massive. around every today, need only much who change, really more when not Once their average U.S. no X.X are have category go people coming broken they back us single company, that public the shouldn't keep we an a number Europe world to Western products. our circumstances multiple into this the And eligible is they the And they that around time, lower the singles to we at do. of dating why use on though, Western only number of is are tried try much of rest the so that And still and grown and have eligible it, TAM in app. reason world. half a a people steadily U.S. Maslow's users products. the

ahead. as category So I opportunities and remain incredibly a bullish still whole, the on the

its experiences Tinder, that monetization road schedule the to or we product make we job with is features. team beyond business. XX% to solid new whether the adding new are to all back our by XXXX. in on innovating plan our growth revenue And continues in with it Explore Now macro on and Even into what is execute. QX, current on map deliver to progress uncertainty, large,

beyond more internationally is end expand before a current integrations to in few Hinge They for momentum, the both and the Hyperconnect before Germany of markets remains bringing its English-speaking portfolio. the quarter be the plan and intact. its markets year. products with and second into with markets to build XXXX launching end DACH will Our the our continues And of technology

the are hand didn't Gary us encouraged of the quarter, about journey step provide to feel focus cautiously several flexibility coming I most the more I'm be me role this like operational a able we of privileged to more allows improvements have And color and green the news. shoots to. want to to it time seeing. After optimistic to emergency more time chapter and I and things recent and we category Finally, XX I see to building wanted my give down life, be next of to of back continue and to which but restrictions trends do Seeing an in of as to markets for their state have hoping will to the has COVID are years the the incredible other this fears before on over headspace day-to-day I've quasi around while address Japan on and globe chapter ease. from business, out do

yet vast have of the As around earlier, try opportunity I company world apps. the The single is before the said to dating majority immense. people

why App is and the today gaming. best to leader as I he and Bernard this payers, payers instrumental in nearly the only has a our of entry one grown of entertainment Bernard only huge ours, the product brands needed, of experience brings that's continue opportunity users, life demographics, a a the is across regulations safety from cycle a steadily week. category, different successful company. track cap and acquisitions. successful dealt think services there outcomes with There leader positioned a He order He has global value capture mid-teens important player has of business, balance he but the very challenges is they And active of and Store to in produce the products, next us, to users. metrics. where of cup better XX cost all very geography Zynga's million to a record Xx. years both And and all Zynga's of into a drove Not as markets, our in recruitment. ample has than continue penetration to trust to today. for he the remains has which intent with these talent X multi-brand, He helped proven growth drive was in reputation, matter by age, other people also less for X of to unique culture. Zynga's into engagement multi-platform, runway monetization in -- mobile of coffee well revenue of and -- there expansion, similar to a market And operated grow pool, than XXX no pay growth and a the has right and percent terms users small to as me deeply both Match per cares the successfully, dating characteristics While successful brands phenomenal some and ours strategies and driven in of and as payer business are effects investment amount of similar gender, to organically live people terms about mobile turnaround both network

he's connecting years, through mission X last the games. people working been on of the For

advisor of the company large. with this excited he and anywhere. connecting I'm about for Also, to the the be digital strategy, on through able category With customer years on Now experiences very ever the business people future marriages. build mobile to especially single more Bernard's to dating in the company. our XX the quest and gets on company, not relationships love I leaders Board, experience Match fresh phase will of we actually Group and this to good and mission areas I and love, category solving brand among business next CEOs I'm as of the of over focus have, problems. continue their thinking combined of energy, stay going product, fun so experience, about feel dates, consumer at an I

Finally, for and of the the a I Thank you. expectations. XX I in want this journey. over XX-year all and thank team, rest this Gary all of through management ago alone Board experiences. colleagues to support at my search hand that, to Group, Match to will your came you years of my set This all and I richer opportunities country With far the exceeded has Gary. journey

Gary Swidler

forward last call next earnings this Shar. look company but the having early together, for I'm our in Thanks, BK to August. time call join be in will our disappointed

the yen, a in U.S. the up XX%-plus FX-neutral QX a Turning to an with total QX revenue million well. year-over-year In have continued as which business. QX, global led to year-over-year, a had year-over-year. the On strengthen basis, revenue XX% of XX% up to total of euro Hyperconnect. strong $XXX would quarter number million, year-over-year QX including following against We currencies, dollar $XXX headwinds, $XX million, of the been excluding and FX

and delivering was the were increase our in in in in APAC invasion fairly Payers was performance rising additions brands payers basis, strong, some grew APAC effects effects APAC in the XX% X% modest were from Omicron the seen and the in effects an Americas Other. growth. Tinder impact respectively, QX. numbers. of Europe Americas, QX other, Europe X% direct in Europe Russia, in of RPP market X% by as Europe forward. the countries. and quarter. negative growth Total an and revenue visible the although year-over-year and which Ukraine in of estimate and well. in was year-over-year. would other RPP payers the the which established lifting XX% year-over-year cases of by solid growth of in moving XX% that up Americas, XX%, Our APAC Japan, of and and to and impact million, XX% spike There shows growth. X% RPP of On Americas direct and was invasion improvement nearby and Tinder XX% million, result and driven Americas, reduced the payer performed detracted X% especially in of several up to revenue X% year-over-year up FX-neutral We which and year performance more to did of recently are XX% growth quarter The RPP X.X the the grew in It XX% All were direct following XX% on overall other a in aided drive up adding Ukraine, of on have feel QX. our payer Hinge, the of the brands continue grew Europe an from payers the by APAC We in the Tinder year-over-year of XX% the $XXX Chispa XX% $XX BLK $XX in our was COVID our year-over-year, prior revenue war as revenue acquisition European other. to X% a in RPP again been payers in from in in XX% the FX X% million the restrictions. Hyperconnect strongly major Russian in while Hyperconnect. FX. weathered million Asia, contributed other. XX.X contributed roughly we've growth, and a year-over-year. RPP had per million, impact quarter, up revenue XX.X and of impacted well. a the quarter, We Europe

$XX specific lower-income Some portion The well. that QX of FX, business. a XXXX. trends to as beneficial goings payer tends of relative the which in generally payer revenue at Hyperconnect also QX. Indirect benefited by we we Match thresholds. saw the At to over business it of Turkish early short-term lira Hyperconnect's tail of continued its quarter, a the Americas softness stimulus to saw the despite reached There we This serve government total contributed demographic, new in in consistent softer performance, model which Fish, headwind a model. from saw were some $XX quarter, demonstrated brand improved significantly in last COVID-related million that couple the and paywall pressure the XXXX, Plenty but as million impacts had our year saw advertising challenge on our as continued the attributable a we expected. payers users trends some refine in in end a year-over-year Turkish XX% Ukraine find a opportunities long-term the tested the impacted should the be to of was of met ROI other the some impact brands just with on be revenue established as of especially in of against The as yen. market marketing strong. remains quarter the revenue is war up

in become expense, operating total have income XX% to income $XXX landscape. more advertising grew and adjusted $XXX about for brands million acquisition Our grew appealing XX% operating for expenses, QX year-over-year the XX% grew XX%. QX, million XX%, to with SBC of the margins margins year-over-year from of of in XX% including the advertisers to year-over-year resulting current Hyperconnect. Overall increase of

impact we decreased year-over-year points development the Sales that excluding $X higher momentum. total did Product year-over-year discipline excluding year-over-year. spend, and in expense, safety. costs, Tinder represented increased total million spend XX% marketing consistent to of to relatively show frothy App a year-over-year Hyperconnect, grew spend and revenue point fees as to X revenue And with was primarily Hyperconnect, million spent of and to rose as like marketing post-COVID X percentage of and and excluding markets down at Excluding cautiously marketing sufficient revenue, up revenue, we comprised XX% we environment. cost year a G&A critical as of XX% XX% of Store we revenue. G&A XX% recovery was Hyperconnect, in the grew not were of headcount Hinge. up XX%. prior as user spending year-over-year X% and continue continue due initiatives show on Hyperconnect, year-over-year $X Sales

and still trailing pay income, on and cash all $XXX the X.Xx Tinder ended operating We the X.Xx of at quarter net to from and of and adjusted hand. million hand. short-term investments million with our declined We QX. leverage settle claims $XXX to expect was employee equivalents litigation gross leverage Our cash end related to the cash, on arbitrations former

million a plan. authorized share Our also Board buyback has XX.X

to total which million, growth. would For Match represent QX, we XX% expect revenue Group of to XX% for $XXX $XXX million year-over-year

be This point our an than is the to this the in FX revenue additional basis. higher X headwinds growth year-over-year expect than total that $XX in would FX we of meaning double-digit growth expected year-over-year points QX, growth be FX We year-over-year payers last at FX-neutral more headwinds. impact continued on driven of despite year-over-year call. digits had by We RPP approximately and anticipate million more than an earnings single

Ukraine point negative impacts Additionally, of are revenue another the of growth. the in shaving war

pricing which of and year-over-year the effects in our at would of to unaffected. relatively FX impact growth Tinder XX%. growth QX, QX, outlook revenue the be XX% Excluding war, Tinder be We discounts will should in payer eliminated late age-based but

will pricing in payers We negatively QX of about payers Ukraine. a Russia impacted loss as of the Tinder payers and the age-based anticipate Additionally, the and by in change XXX,XXX fewer war. result be

We be expect pressures. will the by FX QX RPP growth continued impacted

non-English-speaking We improving, will that Germany, Hyperconnect's strong continue believe that revenue the We in expect which QX. markets Hinge at its to headwinds be is trajectory into holiday, its and pace first impact expand QX results will Japan. growth Hyperconnect deliver on Turkey QX performance and in in Hyperconnect, also in geography many impacted is Hinge by growth remain on again the in revenue of but especially typically to Ramadan East. Middle expect impacts FX QX.

margins midpoint $XXX margins that operating representing over million expect of by reduces of about to XX% Hyperconnect the points. of income adjusted We million Recall ranges. at in QX, $XXX X the our

negative be results We policy we sure to their precise $X million of of we to use see X. outlook of in implementation the system estimate QX of impacts. QX payment of that the though Google's of Our change need actual in change assumes implement as policy to impact a June require

evaluating revenue the the impact we XX% policy to operating to the for stated closer options Taking and expect We and Ukraine, challenging our full end our legal are range into year war XX% currently now bottom consumers. the to significant our will previously year-over-year disruptive avoid effect of XXXX. in the their be on other environment, change FX to growth have the including account

clear impact for war of We But year-over-year very we clearly have growth makes X positives, U.S. Ukraine, It post-COVID year-over-year euro a reopening more the FX and would has changing of the points those summer months. meaningfully FX meaning the increased, a but also last is We'll effects the in higher things update in the factors. full once we point change quickly. earnings against August is X-point get. X forward a call of of moment, could over be X we of than at the the challenging. absent This lows of estimating kind X impact expect the At Variability lot dollar. around the million potential given again and uncertainty, and our yen macro globe. that we had next $XX are approximately particularly ago, what months record-setting year, in around visibility trends the again there negatives time love recent X the been see

human The is opportunity Our business need ample growth. unwavering serves a connection. future for our presents fundamental for products and for demand

environment the our While poses macro bright. temporary prospects some challenges, remain longer-term

notice. will successes costs class and marketing which adjust able by to to portfolio, broad driven best knowledge we enable innovative and across portfolio share very be of on important our Moreover, social at limits these to products, providing budgets which We're growth connections. Our in is short mistakes. nimble, enhances technologies our disciplined and our continue on

continue that, to the show I'll if cash all for and ability consistently ready and As to our profitability envy. and line We're for questions. have peers, open growth not grow next deliver whatever our ask for would strong cash shareholders. we and and comes With operator to the that expect flow. an margins flow to to many, profitability such, strong shown We've

Operator

Dan Markets. comes first from question Instructions] with [Operator BMO Salmon The Capital

Daniel Salmon

some Shar, that time some long think obviously, you us little this you was to this reasons personal of a right And of candidates mentioned specific know over bit things making things how eyes really be there spoke, track been Board But either. highlights the you could past change you'd him you from may X he years. and Bernard's of he'll out made or why aren't make when for you've the you reign? of and the the focused and XX your tell other decision several about that any insights the X then about anywhere be takes into record the in going maybe on the But more stand considering think you highlight, it? second, that

Shar Dubey

Sure.

after difference professional I Even that things my I a and was life to As that from you I a I when the commit We know, to -- where me company. guide company. At Board the CEO where told life. a was at to a things role. there my asked and employment could XX provide the announced through Board the make separation Mandy in I've time, had my made reflected worn care this I it are that take me that be an able do. step to become CEO help want stepped have up, my time the continuity in to to down And months. to the agreement independent many couldn't wanted about long-term have I to for of chapter IAC outside then CEO the of the I because being But life process. that just hats that to company. the the down, It want I and company wanting step fact sense unique

and I of through they for. hit, of work to to So ready change thick longer, we once navigate were while I COVID And then the glad my through had out stay would the the I of none prepared all. succession. there COVID I mind took it help crisis, am the were us Board over, us hoped which course, was were of and

he people growth. for has for. creation separated as Bernard talked value with diverse to going with he's and experimented became the markets, And different wasn't Board. studied are right challenges candidates. consumer very process. impressed of be I I also evidenced us. shifting have successor. people mobile with already from instinct lot CEO a the of a He a are a has in brands He has It's mindset. are to and a met there him similar to technologies he person. people is the experience. similar And true growth as that business ran he's a business operated things the worked And quickly early sense, much very Asia everyone very really leave XX record new and is at that he the And multi-platform including to had dealt technology robust a obviously, that strong the track our on our they needs, leader believed we next the as has worked pack, to meaningful many of strong years, multi-brand, very acumen, track but big and They technology I'm And until set also a we excited of going He stages and He after right? product of product a dug -- leader. growth, record. -- very Plus, and and importantly, he's he to super found leader. us, consumer has portfolio. global a and course, people So to He trends. very spotting And presence,

can he going lot I advisor, start characteristics of spend a made we will business it soon love. to bring of is on and around And given parts very valuable next knowledge the the able I Board. he felt would set time role be for an vector said, as my not Bernard have on going engagement products, be this be am which on our I staying far. the as to sense to of able was as his monetization very of familiar I'm And unique plus gaming I as growth. So of to.

help And the in Bernard company officially I XX. and can. starts here to on transition, way any the which May I'm him so And

anything think don't there about on worry So this I is to front.

Operator

with comes question Alexandra Goldman Steiger next Sachs. The from

Alexandra Steiger

I for letter. June? the on forward see moves light talked Thank billings think out an term, recent by discuss $XX the update later that year? the And could looks puts with impact like outlook included then QX. letter on impact an if in the use mandatory $X takes In Match maybe launch last It actually the you full also Store this Play Store fee million you how that of announcement providing you headwind incremental in developments choice million in App the do of quarter, fee and requirement laid about you longer for year. And EBITDA the a and debate of already recent you Google a evolving, Google context, given billing App the user Google's in to you've

Gary Swidler

as our our impacts? question. Why important customer change sometimes capturing Google some -- the a system. in stab X:X billing the relationships our many window from I the the to our of as the short provide on to the that going as with Google serves brands take of change before ratio to they of We well very a it's their time. platforms that with forcing choose direct understand interest I so. doing regulatory use a grab customers that on of with a for them changes way. payment regulatory for Google financial see really relationship now context wave the customer. a at disable we've And with user systems, relationships Play long happening try on for our they Thanks And them maintain don't And fact, now what's the of Okay. had a customers So choice to at and little it and think see over

still want unfortunately, absolutely that of takers justified. Google We've all to choice, go them is all years. And eliminate yet, puts actions not allow we on to many in to had despite we're system, for policy. outlaw which think encourage change and we've Now We provide of the many, regulatory require do to and its continue ahead choice. at this to to change the the us talking policies to their user us see they're mandatory user payment seeking don't to to use months for rulings store. deciding been Google But

towards against view in Google. lightly ticking June clock We they to doing. chosen one exception X to allow been in our to Epic last subscription their the Games, they've take user and the ability had Last choice. something the a need not time, only European of purposes that we in been as is week, situation, and resort fact, Spotify at it a a In But deadline, But same we not want as Under to to from do. a they've an previously them enabled through the fees, no removed ourselves to business. well the to Store. Spotify, share company, which Play able circumstances their lawsuit take with case, to our see our regulators provide protect to similar or steadfast to Play file as we do choice because unable consumers' our served best Store decided removing policy our distribute and do facing to

In lead expect their $X million terms disclosed, we've we policy a month an cost to of impact, us. to change to as approximately the incremental

estimated to So April. X, for on started change months the Google. months $XXX this pay X of if the $XX expect in X top the to X previously the million the had aggregate approximately had $XX already for policy we year That June we months would for million starting million compares $XX million the total about in be

we So it's as pretty much expected.

world sometime to require outlaw force winds year them or policy. around regulations to the are European do we change some notably, the and Union late we Most that IP. and next affects entire the year, hand Europe, in going very DMA Now the of Google's And think change are which mandatory this blowing rapidly. of the is going think to their very,

IAP, So is And have us an change be prohibit to across as their payment short-lived. we this return making regulations ultimately, globe is where we policy back able be while mandatory the requiring choice, to this change system. environment we'll to to Google think the now going alternatives very user and to eliminate to

Operator

Lu The question with Mario from next comes Barclays.

Mario Lu

Congrats chapter, on Shar welcome, Bernard. your next and,

the So on guidance. revenue is year the question full

of it You to bottom the guys the XX% lowered XX% to range.

So can I a was just wondering if bit. help unpack you little us

FX the the negative the consider the mentioned second other excluding comps there So recovery? as to are guys offset and in drag that tailwinds Japan half macro such that war, should from you tough

Gary Swidler

our range. additional Yes. FX the to back we to I affect absolutely QX that as didn't close going state bottom mean, really And well. it projecting in February And we're and last Right of now, to previous X you think and the I revenue Russia we provided end correctly. growth reflects QX and XX% that our XX% outlook. be that's see when to headwinds

terms your if in well strong performed second QX, question QX. comps, back XXXX, a had in the and very of on look half you specific we In around very Tinder, particular,

So this a the it's an presents of year. comp to comp. other QX, going easier be QX us for us growth-wise in tougher on hand,

XXXX. QX expect we revenue in so stronger And growth year-over-year

little as determine there here takes puts that are second the how half sit that ultimately are and to predict. several I tougher today, you think, a though, will looks

right back we restrictions. they of to back clearly, think think XXXX yet that's activities positive in market is outlook get assumes important kind where We're a a or we're what to market know starting levels levels. that very of back significant growth improvement level us, of are. we direction, forecast see we've user seen really including where And pre-pandemic activity. lifted For that, example, to signs that now, I Japan, pre-Omicron like closer levels? our are the for we we back to some since today in to we get pre-Omicron really going But to don't And

globe. gradually kind And is so we're improvement expecting what And to. to the hold of around question take levels going are that we exactly get the to back

hard So to recovery half the little quickly. get right going of that's to our bit still how performance and going is second predict And year. in affect to the where that exactly to a now,

you half. well. And you in I success of predict those followed relatively see exciting before planned for of while, terms to how rest map initiatives. that road as take Tinder for assumptions a lot around back levels outlook, for of some typically their offset challenges In make initiatives product if the they our also And very think us we wait the help year a will the has healthy the we we of modest with success. product of a But hold know macro the

the to provide even the year. elsewhere so rates or in back we've to some the that our And outlook, assumed the particular extent performed initiatives half the than Tinder growth what at better additional would company in of in the in upside of

Operator

Justin comes with next KeyBanc. from The question Patterson

Justin Patterson

hoping female out you doing Great. about Thank called Shar, with a for know features to you've and very testing second I half. in some the I much users and Could there it's on talk run. a stick just you that around users monetization how with the that launch what product potentially time? in you great think was you're letter congratulations, planned over and could side. Tinder innovation just impact

Shar Dubey

this. take can I Yes, Justin. you, Thank

And other to revenue we've many this appealing this. our our even in of Tinder the lower. Tinder, that we've part much studying So to features on our said are -- And most as of they of conversion value relative before terms provide. platforms of women and is more been particular, men in of

So a get them we've and help experience of potential their improve they over matches experience. give more and paid that set quality testing of control women designing features the will been and the

find to are able package things we of women, women they find these these we're valuable. year. later this part features to be So a that particular, out in to roll targeted And will hoping think will that's as

about it, on but get levels platforms to can women relative and to more -- conversion other into to thinking to of relative I trying the go to there much men the it, parity that's that's That's as So platform. right?

Justin Patterson

Yes.

Operator

next from question Anmuth The with comes JPMorgan. Doug

Cory Carpenter

And a about general, even is how what recession. One It's getting talk expect user from the in we've or Hoping resilience a Cory been Carpenter and just to during a particular, be economic you weakness how during would how periods the -- appearance. is perspective. category or you've bit engagement of in could seen prior not making you category recessions monetization. impacted a the around economic online JPMorgan. dating question be Match, from slowdown in surprise Doug lot may

Shar Dubey

days the no in our back early is for looked at -- in also proxies of XXXX back We've sort as sure. no Generally, deterioration of Yes, in at change there happens. and data all. COVID engagement what

very back In fact, things view during COVID indicators of actually very in recovering. picked right? general business the early few started we've also up this perhaps small is the first you really off. is pay other And are if within people of a for engagement bit, much did broader weeks, the And that cut a XXXX, we few and in and look propensity back times and expenditure were while well. sudden when a before all Also looking see anxiety of a anything. the performed little people our seen going a XXXX, up quickly increased to engagement really trouble pay, propensity long to news back things weeks, around, at at was decline tracking one we days The didn't when latter see economic of within

And so now. even haven't and yet -- seen We'll seeing We're eye. really keep not anything. signs close not anything for we're a watching

expectation, generally human does during service resilient need. is is it economic our very fundamental though, because business this Our downturns

Operator

from comes Brent Thill Jefferies. with The next question

Brent Thill

the Gary, margin the bottom just the and year? anything for that different we margin describe full approach, the on line the for Can how year. about think on changing should you

Gary Swidler

with definitely some XXX XX% think we ex-Hyperconnect perspective. from to We discipline been we've improvement a kind bit Actually, the kind might on ex-Google, some I margins points And other for even the included in performing discipline. probably marketing XXXX that. of to look back actually if points better of in cost little a you February basis plus outlook the spend of that We're are basis spend XX our margin than very at it ex-Hyperconnect, and territory. well track deliver had in Sure. do of

X.X estimate X of us. million And how is months points Google X to earlier of the the for So the the question, in is about answer doing headwind to June as effect for we're about goes margin. that into Unfortunately, of we mentioned $XX on I a significant front. what, the kind year feel that's, at impact. great policy change reasonably our it if

we're So basically doing more on at it's little away spend even that. basically the eating work eating maybe discipline up a and and all good

for achieves the everything marketing right choose mid-XXs range, course, So that's estimate look probably company little margins the depend at It be the of of COVID that mix, that Hyperconnect, year effect net-net that of as of pass the there including change in recovery. percent somewhere everything the I year, now, in it, my Google the and that what pace percent will if we to including spend a it we out else put X-plus would including levels of course, given the right comes see for including of Hyperconnect. on the to bit effect

So course, And that's right probably the fairly the advertising now, factor. remains market the market of swing generally, expensive. because

But And of so as leading on market that conditions, goes to of on. some that's adjust may our year overall depending macroeconomic discipline. kind the

will on our far we that out, to remain all have margins. but very so feel marketing spend how how what be we disciplined significant about plays factor we'll and track expect much in to see with good I been think we've So deliver. But a

Operator

Schenk from with Lauren The Stanley. comes Morgan next question

Lauren Schenk

state launches in user of is opportunity? macro investors Great. Are online Maybe dating you concern And are outside there's obviously about monetization pause terms anything there other of that a fundamentals X we're growth in that that points bigger confidence And nervousness I offer next thanks few, continue give the in lot quite initiatives for that on can to give the of you over market capitalize the the data And still X lastly, headwinds, of any most picture, been here? there the business? months in of letter. middle the of the MAU a you there sort the excite you the opportunity the industry of or commentary maturity. and understand around innings product to to to what or then the

Shar Dubey

Okay. long That was question. a

MAU. First, about

only ages XXX the total Western markets, half As this XX, that million. to connected XX the the I ex-China, of tried obviously, the lower now as much product. -- And measured in our world. market the has addressable number market is dating And is said, a over of rest ever in -- by vast singles,

is products successful marketing that's features, the usually, sort nonusers new one new other cadence and category driven the and and word-of-mouth from of new steady And slow of breaking users. marketing So into opportunity. course, by campaigns, channels of

few for efficacy apps So for COVID choices people. dating of meet what became clear importance as -- single during people really it one and the became left of the is to

use for they now, of and to us break dating back the coming around and change. -- of now world a them into the they once we app. So as break a is And circumstances their matter know life nonusers category, it convincing the adopt they multiple that keep

One market dealing our sort issues. self-selecting versus new taps pool proposition of which everybody of through mass hard products the of unique and some parent for segment, example, into this very into examples to navigate it they of that is with trying all a bet the find is recent of into single Stir, for go same to the who value have category things where to the tap resistor,

something relevance or ad-supported us, it not in I the of an as the for to all the of an location, MAU because value ecosystem. have user on outcomes business, MAU correlated by explain for about does well in MAU, not our gender, do in same liquidity balance are unlike as Both et churn to age, more the cetera. our is topic While intent, we business business, want episodic of and monetization,

have try big and come as this is one they -- the they or people, break, once, the things a so is back why circumstances when -- And take success they they and it change. of the

XX%, right? very to set geography. close soft mid-teens. about that's of of around paywall they XX-year-old So markets, as category, portfolio phenomenon a payer the so very XX%. to XX%. are So Match years, that's to of think. But monetization, have some And I average, sort large is question hard healthy north even on your our are a for brand well there's like continues to an our a through And penetration Even paywall in as businesses the reactivations variance high a also businesses by unique

so keep us fair for runway to the payer penetration front. of on And there's degree a innovating

we service. way thing for than As that here's a keep on us payer for is average And success a it, this incredibly cheaper date. amount people total mind. to payer, a of The is pays valuable a have in revenue the single lifetime priceless, find cost value who per that

and things think a opportunity here there do I try different that to of so for amount And us increase tremendous is innovation RPP.

One to trading on the of goods idea of I'm collectibles. Tinder referred virtual things excited and platform the this is we've about

particular think mechanics. with and of has some experience Bernard those -- I So

vector I us will pretty watch for. for that be to out interesting a think

our back have all products. to the look users still at I penetration, penetration, per And a history, pretty ahead these a every as revenue So improve of and payer of payer to runway long we've to market able been year. much we opportunity use metrics, X pretty TAM convince large

Operator

comes The question from with next Youssef Squali Truist.

Youssef Squali

to growth Hinge. It some on question organic show meaningful continues pretty Just with Hinge a like looks traction. exceptional

expect expect? You has this call in Is in from number? this mentioned something do you that a that in traction slated imply Germany quarter? $XXX contribution does color recent what recent traction or Or you expected Also, maybe can the of provide still million you higher about you any revenues. the the kind to expansion last on the revenue

Shar Dubey

that. take can I Yes,

growth we trajectory expected. on is Hinge's So as track

Meanwhile, In it organic XXXX expansion, always only our about region in region includes modest revenue by recent in localization. more any contribution of and the outlook, international drivers, seen of surge, XXXX go been plan for rollout traction instance, And timing very from region the and a steady sort of a really terms without has to we've including a a of Europe do XXXX item. is in localization a our then and India This product. Germany. one of quarter in translation

types and to our India. signals, these positive So to of respond are want accelerating launch in we we

is As always app. interesting and a this pretty a high-intent market for thought, we've attractive

to revenue And at least in from the likely contribution, happen perspective, of so a international much is XXXX.

Operator

question Benjamin with Bank. Black Deutsche next comes The from

Benjamin Black

forward? of and M&A context thinking aggressively How of bit the how where new the are going forward share you're trading pushing the anticipating we buyback? more capital a given buyback about change Great. about incremental the And you Just on are in be going should little you does now, authorization? sort heavier allocation thinking buyback

Gary Swidler

Let that one. me take

Xx. ensure At a a leverage again. time and hit of set the leverage end We back clear buyback that just targets to we target by context our net separation, we we little targets, those some So eliminated that the XXXX. then of set had of the we

And back And to that now any organically. two, find gaps that leverage, we stated so portfolio. occasions. can't on we've Number we compelling to that overall hit changed. think M&A time, actually makes opportunities, us and once portfolio M&A want level of business our we At haven't really invest, would are They authorization. it sense that clearly which kinds again capital are number also in capital to in to add If below our for net that allocation the a to done have of opportunistic priorities, our enhance or those number a return acquisitions to those strategically buyback we one, successfully fill kinds then technologies shareholders. of we've do of to

buyback capital with the sense. ability the the so have And shareholders makes provides to if return us that back mechanism to to

to us point our dilution buy to a right which experiencing what take periods And of have think we're back appropriate now. and so as to for employee us from to out, stock cheaply offset we dislocation, is use have, opportunities you to in it's awards good an advantage of equity market tool for tool to

think that see opportunities authorization go with stock the the we some And happening we'll kind find what's I it's assume buy in so shares. of place, to and as buyback in to and back fair with

way on along we are. same as And are I that think about we so what do you we'll disclose we proceed basis. this thinking But the

Operator

today last Wedbush Ygal with Securities. Arounian from The question comes

Ygal Arounian

or reach number on challenging of you and mentioned Gary, ROI of ROI you targets. some kind marketing hit a to inability times,

impacting on some give us factors got a you pulled you you've are macro how you bit overview little and that more So on the back an of spending, just spend. Can be I Japan know, highlighted marketing sort the and letter stepping example, puts on Japan you philosophy -- What takes can in of for up your as also reopens. right in now?

Just flow how ebb think the that we should go we how as and all about year? might through

Gary Swidler

our think where mean, about makes sure tightly hit spending spend I we we post-COVID think Sure. correctly. recovery that as kind the it we Yes. it dynamics We're to also you're where do. we maintaining sense always discipline can that basically making ROI thinking I hurdles and of spend given and

and look now both mentioned by new because the running we're back didn't all as there, not campaigns and as good to seeing you in restrictions, a was spend receptive. in market Japan marketing if With the we brand holding on the turn make example, it we spigot significantly at sense are real the been So letter. our creative contrast Pairs that Japan. and recovery on But some more Tinder highlight in some spending brand, we've the Japan

on The is other pretty spend market that marketing moment. thing that's at is terms frothy of the in going the

spend us at we think COVID, expensive expensive. we and the of the is since market much but down become at COVID-led It look the more opportunity to a market the U.S., has initial that for you aggressively, and really was did, that If real slowed beginning downturn. significantly

particularly businesses discipline. and spend And our really we harder Match so like Meetic, hit at that it's where ROI our thresholds, become for ROI maintain to us marketing-heavy

not people more That even start to, hit we aggressively. often few us see see present And delayed, budgets and had to hit if get about we and more The I though, what watch again, could starting to more hurdles to to hurdles a out is it's there the of we're just then where with just some start opportunities overall think back marketers, to the very seeing think out environment for, And spend, challenging hit not become other between think, get our thing or signals being is IDFA, spend the we're strong get to the marketing if and which impact picture advertising happens cut headed, which I the generally, there. So I hurdles. with putting economic we're on spend nervous our economy that. see. opportunities

be And in a that answer will go the mentioned year Brent, as so swing we perspective. to a I through factor from the as margin

because I signs somewhat a to Shar see said, as think market, be starting us recession-proof. the nervousness our few to in be we're business a tends to could economically resilient, which of benefit So

see absolutely the And advantage were our so opportunities market, to nimble we we we be at beginning the hurdles, if more like hit to and just in more to opportunity take start that, COVID will the of spend of period.

Shar Dubey

Thank been that, last That's an our question. all. It With to want you everyone and I a honor. thank again. privilege has

Operator

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

may You disconnect. now

Match (MTCH) 4 May 222022 Q1 Earnings call transcript