Match Group, Inc. Q1 FY2025 earnings call

• The company announced a reorganization centralizing key functions while allowing brands to maintain independence. A planned 13% workforce reduction was made, aiming for over $100 million in annualized savings. - Tinder is making progress on its product roadmap, with features like Double Date, The Game Game, and AI-driven discovery experience; strengthening trust and safety with new features. - Hinge continues strong momentum with AI-powered recommendation algorithm and plans to test Warm introductions. - International expansion efforts include Hinge launching in Brazil and Mexico, The League in the Middle East and India, Azar expanding in Europe and US, and Pairs launching in South Korea. - The company is focused on being a product-first organization, with increased product velocity and culture shift towards innovation.

Match Group's total revenue in Q1 2025 was $831 million, down 3% year-over-year, flat 1% year-over-year FX neutral. Tinder, the largest brand, had direct revenue of $447 million in Q1, down 7% year-over-year, 4% year-over-year FXN. Tinder's payers declined 6% year-over-year to $9.1 million, and RPP declined 1% year-over-year to $16.38. Hinge had direct revenue of $152 million in Q1, up 23% year-over-year, 24% year-over-year FXN. Hinge's payers grew 19% year-over-year to 1.7 million, and RPP grew 3% year-over-year to $29.90. E&E's direct revenue was $149 million in Q1, down 12% year-over-year, 11% year-over-year FXN. E&E's payers declined 16% year-over-year to $2.4 million, while RPP rose 5% year-over-year to $20.76. Match Group Asia's direct revenue was $64 million in Q1, down 11% year-over-year, 7% year-over-year FXN

• Q2 Match Group total revenue is expected to be $850 million to $860 million, down 2% to flat year-over-year. - Match Group adjusted operating income in Q2 is expected to be $295 million to $300 million. - Full-year 2025 Match Group total revenue guidance remains $3.375 billion to $3.5 billion. - Match Group AOI is expected to be within the range of $1.232 billion to $1.278 billion for the full year. - Expected stock-based compensation expense in 2025 is $280 million to $290 million, meaningfully lower than previous range.

• Macro-economic conditions may impact financial performance. - Fluctuations in foreign exchange rates are difficult to predict and may affect results. - App store policy changes may have an impact. - Consumer spending-related headwinds, such as impacts on ALC revenue at Tinder, need to be monitored.

Q: Nathan Feather asked about balancing investment and efficiencies to maximize productivity and product velocity.

A: Spencer Rascoff said the cuts create a more nimble organization, aim to hit Investor Day targets, and allow reinvestment in international expansion, product development, and customer acquisition for various brands.

Q: Cory Carpenter asked about company priorities and differences.

A: Spencer Rascoff mentioned priorities include operating as one Match Group, driving Tinder growth, helping Hinge grow in the intentional dating category, and focusing on employee engagement and culture.

Q: Ygal Arounian asked about cost cuts, reinvestment, and Tinder product roadmap.

A: Steven Bailey said Investor Day margin targets remain, but cost reduction plans are accelerated; Spencer Rascoff talked about Tinder's organizational changes, increased product velocity, and exciting product roadmap.

Q: Shweta Khajuria asked about App Store changes impact and macro应对.

A: Spencer Rascoff said they are testing app releases for App Store changes, and prepared to take pricing and other actions if macro headwinds persist.

Q: John Blackledge asked about Tinder paying user trajectory and OpEx savings.

A: Steven Bailey said focusing on user trends to improve revenue, MAU still declining; Spencer Rascoff mentioned looking at unifying marketing measurement for OpEx savings.

Q: Curtis Nagle asked about 1Q advertising surge.

A: Steven Bailey said it was driven by Valentine's Day and large advertisers, not expected to sustain, full-year advertising revenue guidance flat.

Q: Ben Black asked about Tinder NZ AI discovery and Bumble's marketing pullback.

A: Spencer Rascoff said encouraged by NZ AI discovery results, changing brand perception; Steven Bailey said performance marketing for some brands is ROI-driven.

Q: Ken Gawrelski asked about online dating industry health and product innovation effectiveness.

A: Spencer Rascoff said MAU is key external metric, online dating industry faces challenges, need to innovate and prioritize users to improve category perception.

Q: Jason Helfstein asked about Tinder MAU decline and data disclosure impact.

A: Spencer Rascoff said some MAU decline is intentional but not most, data disclosure doesn't hinder long-term decision-making.

Q: Chris Kuntarich asked about trust and safety face photos rollout and FX update.

A: Spencer Rascoff said trust and safety work continues with care; Steven Bailey said FX trends improved, full-year guidance unchanged due to caution on macro impacts.

Q: Robert Taylor asked about new market rollout costs and revenue ramp.

A: Steven Bailey said new market rollout costs vary by brand, with synergies in go-to-market teams.

Q: Dan Salmon asked about Board changes and shareholder dialogue.

A: Spencer Rascoff said new Board members bring consumer expertise, actively engaging with shareholders.