Match Group Announces First Quarter Results

Core Insights - Match Group's new CEO, Spencer Rascoff, emphasizes a swift revitalization of the business, showcasing early positive results in the first quarter of 2025 [2] - The company is undergoing a reorganization to enhance integration, product focus, and innovation, aligning with the preferences of Gen Z users [2][3] - A planned 13% workforce reduction and centralization of key functions aim to improve efficiency and reduce duplication across the organization [3][4] Financial Performance - Total revenue for Q1 2025 was $831 million, a decline of 3% year-over-year, with direct revenue also down by 4% to $812 million [7][8] - Operating income decreased by 7% to $173 million, maintaining an operating income margin of 21% [8][22] - Adjusted operating income was $275 million, down 2% year-over-year, with an adjusted operating income margin of 33% [8][9] User Metrics - The number of payers decreased by 5% year-over-year to 14.2 million, while revenue per payer (RPP) increased by 1% to $19.07 [8][9] - Operating cash flow for the quarter was $193 million, with free cash flow at $178 million [15][35] Shareholder Returns - The company repurchased 6.1 million shares at an average price of $32, totaling $195 million, and paid $48 million in dividends [8][16] - A cash dividend of $0.19 per share was declared, payable on July 18, 2025 [12][21] Future Outlook - For Q2 2025, Match Group anticipates total revenue between $850 million and $860 million, with adjusted operating income projected between $295 million and $300 million [19][33] - The adjusted operating income margin is expected to be approximately 35% at the midpoint of the revenue range [19][33] Cash and Debt Position - As of March 31, 2025, Match Group had $414 million in cash and cash equivalents, with long-term debt totaling $3.5 billion [20][22] - The company’s leverage ratio was 2.8x on a gross basis and 2.4x on a net basis [20]