Why Is Match Group (MTCH) Down 6.2% Since Last Earnings Report?

Core Viewpoint - Match Group's recent earnings report showed a decline in revenues and earnings per share, leading to a drop in share price, raising concerns about future performance and market expectations [2][11]. Financial Performance - Fourth-quarter 2024 earnings were reported at 82 cents per share, missing the Zacks Consensus Estimate by 2.38%, and reflecting a 0.7% decline year-over-year [2]. - Revenues for the quarter were $860 million, down 0.7% year-over-year but slightly exceeding the Zacks Consensus Estimate by 0.48% [2]. - Direct revenues were $845.4 million, a decrease of 0.6% year-over-year, while indirect revenues fell 4.5% to $14.8 million [3]. - Total operating costs increased by 5.1% year-over-year to $636.8 million, representing 74% of revenues [7]. Segment Performance - Hinge showed strong performance with direct revenues increasing 27.2% year-over-year, achieving record downloads [3]. - Tinder's direct revenues decreased by 3.5% year-over-year to $476 million, although it surpassed estimates by 0.17% [4]. - Match Group Asia's direct revenues declined 9.5% year-over-year to $66.6 million, impacted by foreign exchange fluctuations [6]. User Metrics - The total number of payers decreased by 4% year-over-year to 14.61 million, but this figure beat the Zacks Consensus Estimate by 0.80% [4]. - Revenue per payer (RPP) increased by 5% year-over-year to $19.29, also exceeding estimates [4]. Guidance and Outlook - For Q1 2025, Match Group expects revenues between $820 million and $830 million, indicating a 3-5% year-over-year decline [11]. - The company anticipates adjusted operating income for Q1 to be between $260 million and $265 million, suggesting a 5-7% year-over-year decline [13]. - For the full year 2025, revenues are projected to be between $3.375 billion and $3.5 billion, implying a potential decline of 3% to growth of 1% [14]. Shareholder Actions - In Q4 2024, Match Group repurchased 3.1 million shares for $117 million, and for the full year, 22.2 million shares were repurchased for $753 million [9][10].