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Match Group (MTCH) Q1 Earnings Beat, Revenues Decline Y/Y
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Match Group (MTCH - Free Report) reported first-quarter 2023 earnings of 42 cents per share, down 30% from the year-ago quarter’s earnings of 60 cents per share.
The Zacks Consensus Estimate for first-quarter 2023 earnings was pegged at 40 cents per share.
Revenues of $787 million decreased 1% year over year, missing the Zacks Consensus Estimate by 0.92%.
Match Group Inc. Price, Consensus and EPS Surprise
In the first quarter, the number of total payers increased 10% to 16.4 million from the prior-year quarter. The number of total payers from America and Europe decreased 2% and 7%, respectively, whereas the Asia Pacific (APAC) saw an increase of 1% on a year-over-year basis.
America saw an increase of payers at Tinder and Hinge. However, this was offset by a larger decline of payers at Match and Plenty of Fish. The decline in Europe payers was due to Tinder and Meetic, partially offset by an increase at Hinge while increase in APAC was driven by Tinder.
Total RPP increased by 2% year over year to $16.26. Region-wise, RPP increased 4% in America and 6% in Europe but decreased 9% in APAC year over year.
APAC RPPs were unfavorably impacted by the strength of the U.S. dollar relative to the British pound and Japanese yen and Turkish lira, respectively.
Direct revenues from the Americas were up 1% to $405.9 million. Direct revenues from Europe and APAC decreased 1% to $212.5 million and 7% to $155.9 million, respectively.
Direct revenues from Tinder were flat from the prior-year quarter due to relatively flat year-over-year payers and RPP, which were 10.7 million and $13.80 for the quarter, respectively.
Direct revenues from All Other Brands collectively declined 3% year over year, along with a 3% decline in payers, which was offset by 2% RRP growth.
For the first quarter of 2023, Hinge’s direct revenues rose 27% year over year as a result of payers exceeding one million and RPP exceeding $25.
Operating Details
Total operating costs and expenses increased 1% year over year to $588.8 million in the first quarter.
Adjusted operating income was $263 million, declining 4% from the prior-year quarter, representing an adjusted operating income margin of 33%.
Balance Sheet
As of Mar 31, 2023, Match Group had a cash and cash equivalent and short-term investment of $578 million compared with $581 million as of Dec 31, 2022.
As of Mar 31, 2023, Match Group had long-term debt of $3.9 billion, remaining same as the previous quarter.
As of Mar 31, 2023, Match Group reported $1.2 billion of exchangeable senior notes and $750 million under its revolving credit facility. The amount was undrawn as of Mar 31.
Guidance
Match Group expects second-quarter 2023 revenues in the range of $805-$815 million, indicating roughly 1-3% growth year over year. Adjusted operating income for the second quarter is anticipated in the range of $275-$280 million, which indicates a decline of almost 2% year over year.
However, for the full-year 2023, Match Group eyes revenue growth of 5-10% year over year.
Zacks Rank & Stocks to Consider
Currently, Match Group has a Zacks Rank #2 (Buy).
Shares of Match Group have declined 56.2% compared with the Zacks Retail and Wholesale sector’s decline of 6.7% in the year-to-date period.
Shares of Arcos Dorados have increased 5.4% year to date. The company is scheduled to report first-quarter fiscal 2023 results on May 17.
Shares of Solo Brand have gained 101.4% in the same time frame. The company is slated to report first-quarter fiscal 2023 results on May 4.
Shares of Samsonite International have gained 19.8% in the year-to-date period. The company is scheduled to report first-quarter fiscal 2023 results on May 17.
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Match Group (MTCH) Q1 Earnings Beat, Revenues Decline Y/Y
Match Group (MTCH - Free Report) reported first-quarter 2023 earnings of 42 cents per share, down 30% from the year-ago quarter’s earnings of 60 cents per share.
The Zacks Consensus Estimate for first-quarter 2023 earnings was pegged at 40 cents per share.
Revenues of $787 million decreased 1% year over year, missing the Zacks Consensus Estimate by 0.92%.
Match Group Inc. Price, Consensus and EPS Surprise
Match Group Inc. price-consensus-eps-surprise-chart | Match Group Inc. Quote
Quarter in Detail
In the first quarter, the number of total payers increased 10% to 16.4 million from the prior-year quarter. The number of total payers from America and Europe decreased 2% and 7%, respectively, whereas the Asia Pacific (APAC) saw an increase of 1% on a year-over-year basis.
America saw an increase of payers at Tinder and Hinge. However, this was offset by a larger decline of payers at Match and Plenty of Fish. The decline in Europe payers was due to Tinder and Meetic, partially offset by an increase at Hinge while increase in APAC was driven by Tinder.
Total RPP increased by 2% year over year to $16.26. Region-wise, RPP increased 4% in America and 6% in Europe but decreased 9% in APAC year over year.
APAC RPPs were unfavorably impacted by the strength of the U.S. dollar relative to the British pound and Japanese yen and Turkish lira, respectively.
Direct revenues from the Americas were up 1% to $405.9 million. Direct revenues from Europe and APAC decreased 1% to $212.5 million and 7% to $155.9 million, respectively.
Direct revenues from Tinder were flat from the prior-year quarter due to relatively flat year-over-year payers and RPP, which were 10.7 million and $13.80 for the quarter, respectively.
Direct revenues from All Other Brands collectively declined 3% year over year, along with a 3% decline in payers, which was offset by 2% RRP growth.
For the first quarter of 2023, Hinge’s direct revenues rose 27% year over year as a result of payers exceeding one million and RPP exceeding $25.
Operating Details
Total operating costs and expenses increased 1% year over year to $588.8 million in the first quarter.
Adjusted operating income was $263 million, declining 4% from the prior-year quarter, representing an adjusted operating income margin of 33%.
Balance Sheet
As of Mar 31, 2023, Match Group had a cash and cash equivalent and short-term investment of $578 million compared with $581 million as of Dec 31, 2022.
As of Mar 31, 2023, Match Group had long-term debt of $3.9 billion, remaining same as the previous quarter.
As of Mar 31, 2023, Match Group reported $1.2 billion of exchangeable senior notes and $750 million under its revolving credit facility. The amount was undrawn as of Mar 31.
Guidance
Match Group expects second-quarter 2023 revenues in the range of $805-$815 million, indicating roughly 1-3% growth year over year. Adjusted operating income for the second quarter is anticipated in the range of $275-$280 million, which indicates a decline of almost 2% year over year.
However, for the full-year 2023, Match Group eyes revenue growth of 5-10% year over year.
Zacks Rank & Stocks to Consider
Currently, Match Group has a Zacks Rank #2 (Buy).
Shares of Match Group have declined 56.2% compared with the Zacks Retail and Wholesale sector’s decline of 6.7% in the year-to-date period.
Arcos Dorados (ARCO - Free Report) , Solo Brands (DTC - Free Report) and Samsonite International (SMSEY - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arcos Dorados have increased 5.4% year to date. The company is scheduled to report first-quarter fiscal 2023 results on May 17.
Shares of Solo Brand have gained 101.4% in the same time frame. The company is slated to report first-quarter fiscal 2023 results on May 4.
Shares of Samsonite International have gained 19.8% in the year-to-date period. The company is scheduled to report first-quarter fiscal 2023 results on May 17.