Core Insights - Match Group (MTCH) reported fourth-quarter 2024 earnings of 82 cents per share, missing the Zacks Consensus Estimate by 2.38% and reflecting a 0.7% decline year-over-year [1] - Revenues for the quarter were $860 million, down 0.7% year-over-year but exceeding the Zacks Consensus Estimate by 0.48% [2] - The company anticipates first-quarter 2025 revenues of $820-$830 million, indicating a 3-5% year-over-year decline primarily due to decreased Tinder direct revenues [10] Financial Performance - Total operating costs and expenses increased 5.1% year-over-year to $636.8 million, representing 74% of revenues [7] - Adjusted operating income for the fourth quarter was $323.9 million, down 10.4% year-over-year, with an adjusted operating margin of 37.7%, a contraction of 410 basis points [7] - The number of total payers decreased 4% year-over-year to 14.61 million, while total revenues per payer (RPP) increased 5% year-over-year to $19.29 [4] Revenue Breakdown - Direct revenues from Tinder decreased 3.5% year-over-year to $476 million, while Hinge direct revenues increased 27.2% year-over-year to $147.7 million [4][5] - Match Group Asia's direct revenues declined 9.5% year-over-year to $66.6 million due to forex fluctuations [6] - Evergreen and Emerging revenues decreased 7.6% year-over-year to $155.1 million, despite a 14% increase in payers [6] Shareholder Actions - The company repurchased 3.1 million shares for $117 million in the fourth quarter and 22.2 million shares for $753 million throughout 2024 [8][9] - As of February 4, 2025, $1.75 billion in aggregate value of shares was available under the current repurchase program [9] Future Guidance - For 2025, Match Group expects revenues of $3,375-$3,500 million, implying a 3% year-over-year decline to 1% growth [12] - Adjusted operating income for 2025 is projected to be $1,232-$1,278 million, with an AOI margin of at least 36.5% [13]

Core Insights - Match Group (MTCH) shares experienced a significant decline following the announcement of a new CEO and a disappointing sales outlook [1][5] Company Leadership - CEO Bernard Kim is stepping down, with Spencer Rascoff, former CEO of Zillow, set to take over on March 1 [2][5] Financial Performance - The company forecasts current-quarter sales between $820 million and $830 million, which is below analyst expectations [3] - Full-year sales projections are between $3.38 billion and $3.5 billion, also falling short of the anticipated $3.49 billion [3] - Despite better-than-expected fourth-quarter results, including earnings per share of 59 cents and revenue of $860.2 million, overall revenue declined by 1% year-over-year [4] - Sales at Tinder dropped by 3%, Evergreen & Emerging by 7%, and Match Group Asia by 9%, while Hinge saw a 27% increase in sales [4] Market Reaction - Following the announcements, Match Group shares fell nearly 8% to $33.68, marking a 3% decline over the past year [4]

February X, 2025 Q4 2024 Supplemental Materials February 4, 2025 Disclosures and Definitions Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures in addition to financial measures presented in accordance with U.S. GAAP. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. See pages 19-35 for a reconciliation of the non-GAAP financial measures to their most ...

Financial Data and Key Metrics Changes - Match Group reported total revenue of $3.5 billion for 2024, representing a 3% year-over-year increase or 6% on an FX neutral basis [13] - The company achieved its full year AOI margin target of 36%, reflecting a continued focus on cost discipline [13] Business Line Data and Key Metrics Changes - The peak dating season, which runs from the day after Christmas to Valentine's Day, contributed to a solid start for the company [10] - Tinder's year-over-year direct revenue growth is experiencing declines, which is impacting overall revenue expectations for Q1 [32] Market Data and Key Metrics Changes - Tinder's monthly active users (MAU) showed a decline of about 10% year-over-year in October, improving to a decline of 8% in January [38][39] - Emerging brands like Chispa and BLK are driving strong growth, helping to offset declines in evergreen brands [100] Company Strategy and Development Direction - The company aims to leverage innovation, particularly driven by AI, to improve product experience and drive growth [10] - There is a focus on fostering a culture of creativity and continuous innovation to remain at the forefront of the dating industry [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improving revenue growth throughout 2025, despite current challenges [35] - The transition in leadership is expected to be smooth, with the new CEO familiar with the company's strategy and operations [26] Other Important Information - The company plans to return at least 100% of free cash flow through dividends and share repurchases [13] - The new CEO, Spencer Rascoff, emphasized the importance of the company's mission to connect people and the potential for AI to drive significant business inflection [22] Q&A Session Summary Question: What inspired you to join Match Group and your perspective on the online dating industry? - The new CEO highlighted the mission of connecting people as a fundamental human need and expressed excitement about the potential of AI to enhance user engagement [22] Question: Why is this the right time for a leadership change? - The CEO noted that the transition would be smooth due to his prior involvement with the company and familiarity with its strategy [26] Question: Can you elaborate on the solid start to the dating season and the Q1 guidance? - Management acknowledged solid new user trends but indicated that Q1 revenue expectations are impacted by declines in Tinder's direct revenue growth [32] Question: What initiatives are expected to improve Tinder's MAU trends? - Management mentioned several initiatives focused on trust and safety, user outcomes, and enhancing the fun in dating as key areas for improvement [60] Question: How will the new matching algorithm at Hinge be leveraged across other brands? - The company plans to utilize shared learnings and technology across its multi-brand portfolio to enhance matching algorithms [82] Question: What is the margin outlook for 2025? - Management committed to at least 50 basis points of margin expansion in 2025, despite FX headwinds impacting revenue and margin [53] Question: How will the company approach monetization for Tinder and Hinge? - The focus will be on maximizing total revenue rather than just the number of paying users, with ongoing optimizations across the portfolio [90][94] Question: What is the outlook for emerging brands and their contribution to growth? - Management expects moderating declines in evergreen brands and continued strong growth from emerging brands, contributing positively to overall financial performance [99]

Core Viewpoint - KFC has introduced a new limited-time menu item featuring its Original Recipe fried chicken drizzled with Mike's Hot Honey, combining sweet and spicy flavors to enhance the dining experience [1][2][8] Product Offerings - The $7 Mike's Hot Honey Chicken Box includes a choice of two pieces of fried chicken or three tenders, topped with Mike's Hot Honey, a buttery biscuit, and an individual side [2][3] - The $25 Fan Favorites Box features four pieces of fried chicken drizzled with Mike's Hot Honey, a 12-piece serving of white meat nuggets, Secret Recipe Fries, four biscuits, and a choice of four sauces, including Mike's Hot Honey [4][7] Availability - The new menu items will be available starting February 9, 2025, on major delivery platforms and in KFC restaurants nationwide from February 10, 2025 [6][10] Marketing Strategy - KFC's Chief Marketing Officer emphasized the appeal of combining the brand's fried chicken with Mike's Hot Honey, describing it as a "food alchemy" that enhances the flavor profile [8] - Mike Kurtz, founder of Mike's Hot Honey, expressed excitement about the partnership, highlighting the nostalgic connection many Americans have with KFC's fried chicken [9] Promotional Offers - KFC will offer $0 delivery on orders placed through its app or website from February 14 to February 20, 2025, to encourage customers to try the new menu items [10][13]

Group 1 - The article discusses the investment potential of Match Group, particularly after Elliot Investment Management's involvement, indicating a positive outlook for the company [1] - The focus is on identifying high-quality companies with a market capitalization of less than $10 billion that can reinvest capital effectively for significant returns [1] - The ideal investment scenario involves companies with a long-term capability of capital compounding and a high compound annual growth rate, potentially delivering tenfold returns or more [1] Group 2 - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1] - The article emphasizes maintaining a long-term perspective on investments to achieve higher returns compared to market indices in a rapidly changing investment environment [1]

Core Insights - Match Group reported revenue of $860.18 million for the quarter ended December 2024, reflecting a year-over-year decrease of 0.7% and a surprise of +0.48% over the Zacks Consensus Estimate of $856.04 million [1] - The earnings per share (EPS) for the quarter was $0.82, slightly up from $0.81 in the same quarter last year, but below the consensus estimate of $0.84, resulting in an EPS surprise of -2.38% [1] Financial Performance Metrics - Total payers for Hinge reached 1.62 million, exceeding the average estimate of 1.61 million, while Tinder had 9.49 million payers, slightly above the estimate of 9.48 million [4] - Revenue per payer (RPP) for Hinge was reported at $30.42, surpassing the average estimate of $30.06, and Tinder's RPP was $16.72, marginally above the estimate of $16.71 [4] - Total direct revenue was $845 million, slightly above the average estimate of $843.95 million, but still representing a year-over-year decline of 0.7% [4] - Indirect revenue was reported at $15 million, which is a 3% decrease compared to the year-ago quarter [4] - Direct revenue from Tinder was $476 million, showing a 3.5% decline year-over-year, but above the average estimate of $475.18 million [4] Stock Performance - Match Group's shares have returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Match Group reported quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $0.84 per share, but showing an increase from $0.81 per share a year ago, resulting in an earnings surprise of -2.38% [1] - The company posted revenues of $860.18 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.48%, although this represents a decline from year-ago revenues of $866.23 million [2] - Over the last four quarters, Match Group has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Match Group shares have increased approximately 8.2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.77 on revenues of $853.39 million, and for the current fiscal year, it is $3.32 on revenues of $3.49 billion [7] Group 3: Industry Context - The Internet - Commerce industry, to which Match Group belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

The online dating app giant delivered mixed results, outpacing analysts' estimates but falling short of management's revenue guidance.Match Group (MTCH 3.02%), the dating app leader, released its fourth-quarter earnings on Feb. 4. It reported earnings per share (EPS) of $0.59, exceeding analysts' consensus estimate of $0.55. Revenue of $860 million slightly exceeded the estimated $857 million, but was below management's guidance range. Overall, Match's quarter showed resilience in EPS amidst a backdrop of r ...

Core Insights - The communication services sector presents significant investment opportunities, particularly as it encompasses various tech-adjacent firms involved in media and communications [2][3][10] - The sector includes a mix of high-growth innovators and established companies with substantial dividends, making it attractive for diverse investment strategies [2][12] Sector Definition - Communication services stocks are defined as companies involved in networks (internet, broadband, cellular, etc.) and content (information, advertising, entertainment, etc.) [7][10] - The sector was established in 2018, combining companies from the telecommunications and information technology sectors, as well as media companies from the consumer discretionary sector [10] Investment Appeal - Investors are drawn to communication services stocks for their potential for growth, steady dividends, and defensive characteristics during market volatility [12][13] - The sector is expected to benefit from advancements in artificial intelligence, positioning it competitively for long-term growth [12] Stock Recommendations - A list of recommended communication services stocks includes Match Group (MTCH), Warner Music Group (WMG), T-Mobile US (TMUS), and Netflix (NFLX), among others, with long-term EPS growth rates ranging from 16.9% to 139.3% [3][4][18] - The selection criteria for these stocks include a long-term estimated EPS growth rate of at least 15%, coverage by at least 10 analysts, and a consensus Buy rating of 2.5 or less [17][18] Market Dynamics - Digital advertising revenue is projected to remain strong, benefiting major players like Meta Platforms and Alphabet as long as the U.S. economy remains robust [11] - The sector's diversity includes both defensive companies and those focused on disruptive innovation, making it essential for investors to identify specific stocks based on their investment goals [12][13]