Match Group Inc at Evercore ISI TMT Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Well, that makes sense. I mean, it's one of your key competitive advantages to have -- the diversification of your assets as well as geographic diversification. Just to follow-up on the TAM. I guess, where do you think is in -- so there's -- there are 600 million to 800 million single people, 50% perhaps penetrated in some of the developed markets. So there is upside to penetration, not only in the developed markets, but also in nondeveloped and emerging markets. And then when we think about ARPU opportunities in terms of monetization, an average -- maybe help us think about how many apps does an average user usually have? Maybe there's an opportunity there? And maybe what's the upside in payer conversion and ARPU as you think about next, call it, 5 years.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : No, that makes perfect sense. That actually leads us to the -- to my second question on COVID. So first, it'd be great to hear the impact you've seen so far, and then we'll get into ahead of the reopening, how you're positioned. So let's go back just a year. Maybe if you could talk about how would you characterize COVID's impact on the company? We saw some deceleration in top line growth in the second quarter of last year, but then growth sort of just snapped back to normalized levels with accelerating growth for 3 consecutive quarters -- prior quarters when you are expecting acceleration in the second quarter. So I guess what drove that? And what did the company focus on over the past year or so as you worked on adapting to responding to COVID and shelter-in-place, et cetera?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Yes. To that point then, different geographies are recovering at different rates because of vaccinations and the restrictions around how open the economies are from U.S. to Europe to India is still sort of lagging. And during your first quarter earnings call, you mentioned that you expect full year revenue and EBITDA to be at the high end of the guidance that you had previously provided during the fourth quarter of the earnings call. I guess the question is, what are the drivers that you're accounting for right now into your guide? Because first quarter was strong, your second quarter guide seemed very healthy. So as you think about the back half, what are some of the growth drivers that you are accounting for that are baked into the guide? And how are you thinking about the recovery path across geographies and also the impact from pent-up demand and any other factor?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Yes. Well, I mean the county I live in Marin here in the Bay Area, June 15, everything is going to be open. So that's pretty remarkable. How much of Tinder Platinum is included in the guide contribution from -- yes.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Understood. We're getting quite a few questions from clients. So let me take one of them as it's related. I guess how much of the business today is subscription versus a la carte? So not only for Tinder -- or I guess first for Tinder and then for overall.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. That makes sense. I'll ask one more, and I'm going to flip it to Jian after that. If we think about Tinder, and going back to your point on you manage your overall revenue growth versus sub-growth and ARPU or a la carte versus subscription. So when we just think about Tinder, how are you thinking about growth opportunities? Is it fair to think that Tinder top line growth can be in the high teens for the next, call it, 3 to 5 years of sustainable growth rate? And if so, how should we think about subscriber growth versus ARPU growth for Tinder? It's already at 7 million subscribers today almost and has scaled so well. So how are you thinking about that?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Jian?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. Well, in 2 -- 1 or 2 minutes, Gary, let me see if I can incorporate client questions and my own. So perhaps just frame the social discovery opportunity. Why Hyperconnect? What's the strategic rationale? And then perhaps, I'm going to read this question, can you talk about the plans for broader expansion of Tinder, sort of a relaunch later this year, including new experiences beyond swipe, match, message? And is the idea to pivot Tinder into social discovery space? So how big is the social discovery opportunity, the Tinder question? And then the third client question is, how much incremental investment do you need to make in Hyperconnect versus what you have done on your own?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : We're looking forward to it. Thank you so much. Gary Swidler, CFO and COO of Match Group, thank you so much for being with us today.