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Match Group (MTCH) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
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Match Group (MTCH - Free Report) reported second-quarter 2023 earnings of 48 cents per share. The company incurred a loss of 11 cents per share in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.67%.
Revenues of $829.5 million increased 4% year over year and beat the Zacks Consensus Estimate by 2.24%.
Match Group Inc. Price, Consensus and EPS Surprise
In the second quarter, the number of total payers decreased 5% to 15.6 million from the prior-year quarter. The figure missed the Zacks consensus estimate by 1.34%.
The number of total payers from America and Europe decreased 6% and 3%, respectively, whereas the Asia Pacific (APAC) witnessed a decline of 3% on a year-over-year basis.
Total revenue per payer (RPP) increased by 10% year over year to $17.41. The figure beat the Zacks consensus estimate by 4%.
Region-wise, RPP increased 12% in America, 13% in Europe and remained flat in APAC on a year-over-year basis.
Direct revenues from the Americas were up 5% to $429.9 million. Direct revenues from Europe increased 9% to $227.7 million, while the same from APAC decreased 3% to $158.4 million.
Direct revenues from Tinder were up 6% over the prior-year quarter to $474.7 million. The figure beat the Zacks consensus estimate by 2.88%. RPP rose 10% year over year to $15.12, driven by pricing optimizations and new weekly subscription packages.
Payers declined 4% year over year to 10.5 million, primarily because of pricing optimizations in the United States, which reduced conversion. Tinder saw an acceleration of subscription revenue growth throughout the quarter.
In addition, Tinder’s ongoing marketing and product efforts helped drive better new user and reactivation trends, which also contributed to improved revenue trends.
Hinge Direct revenues grew 35% year over year, with a 24% year-over-year increase in payers to 1.2 million and an 8% year-over-year increase in RPP to slightly above $25. Hinge continued to grow in English-speaking markets as well as in its European expansion markets, leading to overall downloads growing nearly 50% year over year in the second quarter.
Match Group Asia Direct revenues declined 4% year over year, while Azar revenues increased 24% year over year, helping to partially offset ongoing weakness at Pairs and Hakuna.
Operating Details
Total operating costs and expenses (74% of revenues) decreased 24% year over year to $614.7 million in the second quarter.
Adjusted operating income was $301 million, up 5% from the prior-year quarter, representing an adjusted operating income margin of 36%.
Balance Sheet
As of Jun 30, 2023, Match Group had a cash and cash equivalent and short-term investment of $741 million compared with $578 million as of Mar 31, 2023.
As of Jun 30, 2023, MTCH had long-term debt of $3.9 billion, remaining same as the previous quarter.
During the quarter ended Jun 30, 2023, the company repurchased 1 million shares of common stock for $33 million on a trade date basis at an average price of $31.84. As of Aug 1, 2023, $967 million in aggregate value of shares of Match Group stock remains available under previously announced share repurchase program.
Guidance
Match Group expects third-quarter 2023 revenues in the range of $875-$885 million, indicating roughly 8-9% growth year over year.
Adjusted operating income for the third quarter is anticipated in the range of $320-$325 million, indicating roughly 13-14% growth year over year.
Zacks Rank & Stocks to Consider
Currently, Match Group has a Zacks Rank #3 (Hold).
Shares of Match Group have gained 11.3% compared with the Zacks Retail and Wholesale sector’s return of 16.2% in the year-to-date period.
Arcos Dorados (ARCO - Free Report) , Samsonite International (SMSEY - Free Report) and Alibaba (BABA - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Arcos Dorados and Samsonite International sport a Zacks Rank #1 (Strong Buy) each, Alibaba carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arcos Dorados have increased 32.4% year to date. The company is slated to report second-quarter 2023 results on Aug 17.
Shares of Samsonite International have gained 10.9% in the year-to-date period. The company is set to report second-quarter fiscal 2023 results on Aug 16.
Shares of Alibaba have gained 13.7% in the same time frame. The company is slated to report second-quarter 2023 results on Aug 10.
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Match Group (MTCH) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Match Group (MTCH - Free Report) reported second-quarter 2023 earnings of 48 cents per share. The company incurred a loss of 11 cents per share in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.67%.
Revenues of $829.5 million increased 4% year over year and beat the Zacks Consensus Estimate by 2.24%.
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 second quarter, the number of total payers decreased 5% to 15.6 million from the prior-year quarter. The figure missed the Zacks consensus estimate by 1.34%.
The number of total payers from America and Europe decreased 6% and 3%, respectively, whereas the Asia Pacific (APAC) witnessed a decline of 3% on a year-over-year basis.
Total revenue per payer (RPP) increased by 10% year over year to $17.41. The figure beat the Zacks consensus estimate by 4%.
Region-wise, RPP increased 12% in America, 13% in Europe and remained flat in APAC on a year-over-year basis.
Direct revenues from the Americas were up 5% to $429.9 million. Direct revenues from Europe increased 9% to $227.7 million, while the same from APAC decreased 3% to $158.4 million.
Direct revenues from Tinder were up 6% over the prior-year quarter to $474.7 million. The figure beat the Zacks consensus estimate by 2.88%. RPP rose 10% year over year to $15.12, driven by pricing optimizations and new weekly subscription packages.
Payers declined 4% year over year to 10.5 million, primarily because of pricing optimizations in the United States, which reduced conversion. Tinder saw an acceleration of subscription revenue growth throughout the quarter.
In addition, Tinder’s ongoing marketing and product efforts helped drive better new user and reactivation trends, which also contributed to improved revenue trends.
Hinge Direct revenues grew 35% year over year, with a 24% year-over-year increase in payers to 1.2 million and an 8% year-over-year increase in RPP to slightly above $25. Hinge continued to grow in English-speaking markets as well as in its European expansion markets, leading to overall downloads growing nearly 50% year over year in the second quarter.
Match Group Asia Direct revenues declined 4% year over year, while Azar revenues increased 24% year over year, helping to partially offset ongoing weakness at Pairs and Hakuna.
Operating Details
Total operating costs and expenses (74% of revenues) decreased 24% year over year to $614.7 million in the second quarter.
Adjusted operating income was $301 million, up 5% from the prior-year quarter, representing an adjusted operating income margin of 36%.
Balance Sheet
As of Jun 30, 2023, Match Group had a cash and cash equivalent and short-term investment of $741 million compared with $578 million as of Mar 31, 2023.
As of Jun 30, 2023, MTCH had long-term debt of $3.9 billion, remaining same as the previous quarter.
During the quarter ended Jun 30, 2023, the company repurchased 1 million shares of common stock for $33 million on a trade date basis at an average price of $31.84. As of Aug 1, 2023, $967 million in aggregate value of shares of Match Group stock remains available under previously announced share repurchase program.
Guidance
Match Group expects third-quarter 2023 revenues in the range of $875-$885 million, indicating roughly 8-9% growth year over year.
Adjusted operating income for the third quarter is anticipated in the range of $320-$325 million, indicating roughly 13-14% growth year over year.
Zacks Rank & Stocks to Consider
Currently, Match Group has a Zacks Rank #3 (Hold).
Shares of Match Group have gained 11.3% compared with the Zacks Retail and Wholesale sector’s return of 16.2% in the year-to-date period.
Arcos Dorados (ARCO - Free Report) , Samsonite International (SMSEY - Free Report) and Alibaba (BABA - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While Arcos Dorados and Samsonite International sport a Zacks Rank #1 (Strong Buy) each, Alibaba carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arcos Dorados have increased 32.4% year to date. The company is slated to report second-quarter 2023 results on Aug 17.
Shares of Samsonite International have gained 10.9% in the year-to-date period. The company is set to report second-quarter fiscal 2023 results on Aug 16.
Shares of Alibaba have gained 13.7% in the same time frame. The company is slated to report second-quarter 2023 results on Aug 10.