Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Match Group Inc (MTCH, Financial) exceeded the high end of their guidance for both total revenue and adjusted operating income in Q1 2025.
• The company announced a reorganization to centralize key functions, aiming for more than $100 million in annualized savings.
• Tinder's new features, such as Double Date and The Game Game, are showing positive engagement, particularly among younger users.
• Hinge continues to show strong momentum with a 23% year-over-year increase in direct revenue and a 19% increase in payers.
• Match Group Inc (MTCH) is expanding internationally, with plans to launch Hinge in Brazil and Mexico, and The League in the Middle East and India.

Negative Points

• Match Group Inc (MTCH) reported a 3% year-over-year decline in total revenue for Q1 2025.
• Tinder's direct revenue decreased by 7% year-over-year, with a 6% decline in payers.
• The company announced a 13% reduction in workforce as part of cost-cutting measures.
• Tinder's monthly active users declined by 9% year-over-year in Q1 2025.
• There are early signs of weakening Tinder a la carte revenue trends among younger users, potentially due to macroeconomic pressures.

Q & A Highlights

Q: Given the cost reduction actions you just announced, can you help us think through how you're balancing investment and efficiencies to maximize productivity and product offering? A: Spencer Rascoff, CEO & Director: We announced $45 million of in-year savings and $100 million of annualized savings, primarily from labor. The cuts aim to create a more nimble organization and ensure we hit our Investor Day targets while reinvesting for growth. Savings will be reinvested in international expansion, product development, and customer acquisition for brands like Tinder, Hinge, and others.

Q: Can you talk about your priorities for the company and how you may do things differently while still standing behind the Investor Day targets? A: Spencer Rascoff, CEO & Director: My priorities include operating as one Match Group to leverage scale, growing Tinder's audience, supporting Hinge's growth in the intentional dating category, and focusing on employee engagement and company culture. We're driving innovation and accountability, aiming for a unified company approach.

Q: With the cost cuts and $100 million annual run rate, what's changed since December when you set these targets? Is it the feeling that you need more product investment to get to better growth? A: Steven Bailey, CFO: We've accelerated cost reduction plans, which weren't initially part of our 2025 margin targets. This allows us to maintain our margin goals while investing in areas necessary for revenue growth. Spencer Rascoff added that they pulled forward organizational changes to achieve savings and reinvest in growth.

Q: Are you making any changes across your apps to allow for alternative routes due to app store changes, and what are you seeing? A: Spencer Rascoff, CEO & Director: We're encouraged by the court's decision in the Apple vs. Epic case, allowing link-outs to web purchases. We've submitted app releases and are testing discounted offers on web and other options. If we shift 10% of App Store purchases to web, it could save us approximately $25 million in fees.

Q: How would you assess the health of the overall online dating industry, and how effective do you believe Match can be in driving improved momentum through product innovation? A: Spencer Rascoff, CEO & Director: The online dating category is challenged, primarily due to a lack of innovation and failure to respond to Gen Z's needs. We aim to improve trust and safety, innovate, and prioritize user outcomes. By doing so, we can change the perception of the category and drive growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.