Match Group(US:MTCH)2025-08-05 22:02Financial Data and Key Metrics Changes - Match Group's total revenue for Q2 was $864 million, flat year over year, and down 1% on an FX neutral basis [27][28] - Adjusted operating income (AOI) was $290 million, down 5% year over year, representing an AOI margin of 34% [28] - Tinder's direct revenue in Q2 was $461 million, down 4% year over year, with payers declining 7% to 9 million [29] - Hinge's direct revenue was $168 million, up 25% year over year, with payers growing 18% to 1.7 million [30] - Match Group Asia's direct revenue was $69 million, down 6% year over year, with an operating loss of $300,000 [31] Business Line Data and Key Metrics Changes - Tinder's revenue declined due to a lack of innovation and focus on short-term monetization, while Hinge showed strong growth driven by product innovation [28][30] - The E and E segment's direct revenue was $148 million, down 8% year over year, with payers declining 15% [30] - Indirect revenue increased by 15% year over year, driven by strength in the advertising business [28] Market Data and Key Metrics Changes - Hinge's MAU grew nearly 20% year over year in the first half of the year, with European markets seeing over 60% growth [22][30] - Match Group's overall user engagement metrics are showing signs of improvement, with a decrease in the rate of decline for new account registrations and MAU [54] Company Strategy and Development Direction - The company is undergoing a three-phase turnaround: reset, revitalize, and resurgence, with a focus on product innovation and user outcomes [6][12] - Tinder is being restructured to prioritize low-pressure connections, while Hinge aims to lead in intentional dating [25][26] - A $50 million investment plan is in place for product testing, geographic expansion, and new growth initiatives [25][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the online dating category's growth potential, citing Hinge's success as evidence of ongoing user interest [78] - The company is focused on regaining product market fit, particularly among younger users, and is optimistic about future growth driven by new product offerings [70][79] Other Important Information - The company plans to change its non-GAAP profitability measure from adjusted operating income to adjusted EBITDA starting next quarter [39] - A new marketing strategy is being implemented to support product launches and drive user growth [73] Q&A Session Summary Question: Update on Tinder's engagement with U.S. users under 30 - Management highlighted that recent product launches like DoubleDate are resonating well with younger users, with 90% of usage under 30 [43][44] Question: How to track the status of the turnaround - Management discussed monitoring metrics such as new account registrations, MAU, four-way chats, and contact exchanges to gauge progress [50][54] Question: Expansion of face check and alternative payments - Management is studying the impact of face check on user perception and safety, while alternative payments are showing promising results with a potential $65 million AOI savings opportunity [60][62] Question: Hinge's revenue acceleration drivers - Hinge's growth is attributed to product innovation, a focus on the female experience, and international expansion opportunities [88][91]