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Match Group(MTCH) - 2024 Q4 - Annual Results
MTCHMatch Group(MTCH)2025-02-04 21:48

Financial Performance - Total revenue for 2024 was 3.5billion,a33.5 billion, a 3% year-over-year increase, with a 6% increase on a foreign exchange neutral basis[4] - Operating income for 2024 was 823 million, a decline of 10% year-over-year, resulting in an operating income margin of 24%[4] - The number of payers decreased by 5% year-over-year to 14.9 million, while revenue per payer (RPP) increased by 8% year-over-year to 19.12[4]−InQ42024,totalrevenuewas19.12[4] - In Q4 2024, total revenue was 860 million, down 1% year-over-year, with a 4% decline in payers to 14.6 million[6] - Tinder's total revenue for 2024 was 1.99billion,a11.99 billion, a 1% increase year-over-year, despite a 7% decline in payers to 9.7 million[10] - Hinge's direct revenue grew by 39% year-over-year to 550 million, driven by a 23% increase in payers to 1.5 million[12] - Evergreen and Emerging brands saw a 7% decline in direct revenue to 643million,attributedtoa13643 million, attributed to a 13% decrease in payers to 2.7 million[18] - Total Revenue for Q4 2024 was 860.2 million, a decrease of 0.6% year-over-year (Y/Y) from 866.2millioninQ42023[32]−DirectRevenueforQ42024was866.2 million in Q4 2023[32] - Direct Revenue for Q4 2024 was 67 million, down 9% Y/Y, with a 13% decline in RPP to 21.95,partiallyoffsetbya421.95, partially offset by a 4% increase in Payers to 1.0 million[22] - Adjusted Operating Income for Q4 2024 was 61 million, a decline of 2% Y/Y, with an Adjusted Operating Income Margin of 21%[22] - For Q1 2025, Total Revenue is expected to be between 820millionand820 million and 830 million, down 3% to 5% Y/Y[26] - Full Year 2025 Total Revenue guidance is 3,375millionto3,375 million to 3,500 million, reflecting a decrease of 3% to an increase of 1% Y/Y[26] Cash Flow and Share Repurchase - Operating cash flow for 2024 was 933million,withfreecashflowat933 million, with free cash flow at 882 million, of which 85% was used for share repurchases[4] - The company repurchased 753millionofstockin2024,representing22.2millionshares,with753 million of stock in 2024, representing 22.2 million shares, with 1.75 billion remaining available for repurchase[4] - The company plans to return at least 100% of Free Cash Flow to shareholders through dividends and share repurchases[26] - Free Cash Flow for 2024 was 882million,withanexpectedconversionrateofapproximately81882 million, with an expected conversion rate of approximately 81% of Adjusted Operating Income[28] - Cash and cash equivalents as of December 31, 2024, were 971 million, with long-term debt totaling 3.9billion[30]−Thecompanyrepurchased22.2millionsharesfor3.9 billion[30] - The company repurchased 22.2 million shares for 753 million in 2024, with a new repurchase program authorized for up to 1.5billion[29]−ThenetcashprovidedbyoperatingactivitiesfortheyearendedDecember31,2024,was1.5 billion[29] - The net cash provided by operating activities for the year ended December 31, 2024, was 932,719,000, leading to a free cash flow of 882,141,000[38]AssetsandLiabilities−Totalassetsdecreasedto882,141,000[38] Assets and Liabilities - Total assets decreased to 4,465,771 thousand in 2024 from 4,507,886thousandin2023,adeclineofapproximately0.94,507,886 thousand in 2023, a decline of approximately 0.9%[33] - Long-term debt remained stable at 3,848,983 thousand in 2024, compared to 3,842,242thousandin2023,showingminimalchange[33]−Totalcurrentliabilitiesincreasedto3,842,242 thousand in 2023, showing minimal change[33] - Total current liabilities increased to 549,461 thousand in 2024 from 531,768thousandin2023,anincreaseofapproximately3.3531,768 thousand in 2023, an increase of approximately 3.3%[33] Earnings and Margins - Net earnings for 2024 were 551,313 thousand, down from 651,472thousandin2023,representingadecreaseofabout15.4651,472 thousand in 2023, representing a decrease of about 15.4%[34] - Adjusted operating income for the total Match Group was 323,944 thousand for the three months ended December 31, 2024, compared to 361,596thousandforthesameperiodin2023,adecreaseofabout10.4361,596 thousand for the same period in 2023, a decrease of about 10.4%[35] - Revenue for the total Match Group was 860,176 thousand for the three months ended December 31, 2024, slightly down from 866,228thousandin2023,adecreaseofapproximately0.8866,228 thousand in 2023, a decrease of approximately 0.8%[35] - The operating income margin for the total Match Group was 26% for the three months ended December 31, 2024, compared to 30% in the same period of 2023[35] - The operating income for Tinder was 889,222,000, with an adjusted operating income of 1,017,023,000,resultinginanadjustedoperatingincomemarginof511,017,023,000, resulting in an adjusted operating income margin of 51%[36] - The operating income margin for Match Group in 2024 was 24%, while the adjusted operating income margin was 36%[36] Future Outlook - For the forecasted year ending December 31, 2025, Match Group expects revenue between 3,375,000,000 and 3,500,000,000,withanadjustedoperatingincomeforecastof3,500,000,000, with an adjusted operating income forecast of 1,232,000,000 to 1,278,000,000[39]−Theforecastedoperatingincomeforthefirstquarterof2025isestimatedtobebetween1,278,000,000[39] - The forecasted operating income for the first quarter of 2025 is estimated to be between 155,000,000 and 160,000,000,withanadjustedoperatingincomemarginprojectedat32160,000,000, with an adjusted operating income margin projected at 32%[39] - The forecasted net cash provided by operating activities for the year ending December 31, 2025, is expected to be between 1,055,000,000 and 1,075,000,000,withfreecashflowprojectedat1,075,000,000, with free cash flow projected at 1,000,000,000 to 1,030,000,000[40]OperationalInsights−ThecompanyplanstotestAI−curatedrecommendationsandadouble−datingfeaturein2025toenhanceuserengagement[10][12]−DirectRevenueincludesbothsubscriptionandaˋlacarterevenuereceiveddirectlyfromendusers,whileIndirectRevenueisprimarilyadvertisingrevenue[58][59]−PayersareuniqueusersfromwhomDirectRevenueisearned,withpotentialduplicatesacrossbrandswithintheMatchGroupportfolio[60]−RevenuePerPayer(RPP)iscalculatedasDirectRevenuedividedbythenumberofPayers,providinginsightintoaveragemonthlyrevenue[61]−Stock−basedcompensationexpenseincreasedto1,030,000,000[40] Operational Insights - The company plans to test AI-curated recommendations and a double-dating feature in 2025 to enhance user engagement[10][12] - Direct Revenue includes both subscription and à la carte revenue received directly from end users, while Indirect Revenue is primarily advertising revenue[58][59] - Payers are unique users from whom Direct Revenue is earned, with potential duplicates across brands within the Match Group portfolio[60] - Revenue Per Payer (RPP) is calculated as Direct Revenue divided by the number of Payers, providing insight into average monthly revenue[61] - Stock-based compensation expense increased to 267,381 thousand in 2024 from $232,099 thousand in 2023, an increase of approximately 15.2%[34] - Amortization of intangible assets and impairments of goodwill are non-cash expenses primarily related to acquisitions, reflecting costs incurred by the acquired company[57] - Leverage on a gross basis is calculated as principal debt balance divided by Adjusted Operating Income, while net leverage accounts for cash and short-term investments[62] - Forward-looking statements regarding Match Group's future financial performance and business prospects are subject to uncertainties and risks, including competition and user growth[63] - Match Group operates a diverse portfolio of brands including Tinder, Hinge, and OkCupid, aimed at enhancing user connections globally[64]