Match Group Inc at Evercore TMT Conference 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 : All right. We will -- I'll ask questions for the first several minutes and then open it up. If you have any questions at that time, we'll pass along the mic to you. With that, let's get started. So Gary, at a high level, could we please start with the TAM? Is this category at maturity in North America and developed markets? You've shared some penetration levels in your most recent shareholder letter. So how should investors think about the opportunity and the secular growth sort of opportunity that you see?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. Do you still view this category, at a high level, growing, call it, at mid-teens CAGR, the industry growth rate, not particular assets, but online dating category as that? If so, where is the growth coming from, like payer penetration, new payer growth, like monetization revenue per payer growth?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Yes, makes sense, and we'll get to it in just a second. My next question was going to be on macro environment or a couple of -- series of questions here. So when we think about North America, Western Europe and Japan, first question here is, where are we today in terms of mobility in these geographies? You've said there's correlation between mobility and the way your business grows. So where are we today? And how are you thinking about it based on any leading indicators you're seeing now where it's going in the next, call it, 6 to 12 months? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2022 / 4:00PM, MTCH.OQ - Match Group Inc at Evercore TMT Conference

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay, makes sense. And beyond mobility, when we think about macroeconomic environment over the, call it, just at a high level over the next 3 to 12 months, there are headwinds and tailwinds, like there's Europe where maybe there is a greater probability of recessionary pressure than we are seeing here. What are you seeing in terms of demand trends? And what gives you comfort or confidence that this dating category is not immune but more resilient than some of the other consumer-focused names?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. It's not as top of mind for people in...

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Great, okay. Then moving on to guidance. Did you change the way you're providing your -- did you change your methodology for providing guidance, whether it's Q3 or full year '22? Meaning are you, for any reason, more conservative, less conservative or no change in the way you're thinking about it?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay, that makes sense. And so should things get worse, your guidance still holds through? If things stay normal, then we're... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2022 / 4:00PM, MTCH.OQ - Match Group Inc at Evercore TMT Conference

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. Is it fair to assume that like you've done in the past, you'll provide some context for 2023 in the next quarter?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. That makes sense. That's helpful. Okay. Perhaps moving on to Tinder. Is there anything structurally wrong with Tinder or is it purely an execution issue at Tinder? So one of the pushbacks or debate points is that Tinder could be losing share of the new entrants in the market of the newer cohorts that may be downloading an app to maybe other players in the market, including Hinge. So the question is, where are we with Tinder today in terms of growth opportunity? And then what is really going on at Tinder?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. And so could you go over some of the product changes or what will be different with this team when you say execution will be better? How should we think about getting back to mid- to high teens growth rate or exiting perhaps next year at a mid- to high teens growth rate? What's the path to that and what will do that? What will drive that?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. And when we think about all the product changes, so the ones that we are aware of are Explore, women's oriented product initiative, of course, the virtual coins -- virtual goods and Tinder coins, and then you've mentioned product optimization. Of all these, and if there's more, please add them, but how would you rate them in terms of the magnitude of impact on the business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2022 / 4:00PM, MTCH.OQ - Match Group Inc at Evercore TMT Conference

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : What would be an example?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. Okay, moving on to Hinge, arguably one of the brightest spots in the Match Group of assets. What has helped Hinge to continue to show these level of growth rates? I mean, 50%-plus, $300 million in revenue and that's very healthy. And clearly, data points show that engagement and app downloads, et cetera, continue to do well. So the question is, what is allowing Hinge to grow at such healthy levels? And the follow-up is you are wanting to accelerate the pace of international expansion. You said that during your earnings call and your shareholder letter to 2 a quarter, 2 markets a quarter. How is your go-to-market strategy going to be different from perhaps Bumble's because quite frankly, it seems like you may be targeting some overlapping markets?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Wonderful. Okay. Moving on to maybe not one of your favorite topics but important one nonetheless is app store fees.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : So where are we today? And there was some more news that came out that Google is opening up alternative payments now in more markets, including Japan. Regardless, where are we today? And how do you see that progress, especially because you've got this lawsuit that has a deadline? So how does that impact? Do you think it will happen in the U.S. as well?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Is that back half of '23?

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. So the conclusion is there is a growing pressure for lowering fees. The question is whether that's going to -- when and -- when that could happen.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. Okay. I guess the next question I have is on new management team, which is BK really, is for those who may not know him very well still, how would you define his management style? And why do you think Match is in good hands in terms of execution? So if somebody is worried about, okay, well, will execution go as planned not only at Tinder but in general, what would you say? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2022 / 4:00PM, MTCH.OQ - Match Group Inc at Evercore TMT Conference

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Yes. Well, one time that I met him, it felt like speed dating but he definitely has a lot of energy.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Driving monetization in non-dating...

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Makes sense. We've got 2 minutes left. I'll open it up to you, guys. Anyone has a question, please raise your hand. Going once, going twice. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2022 / 4:00PM, MTCH.OQ - Match Group Inc at Evercore TMT Conference

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : You're covering a lot of ground here. All right. Go ahead.

Question: Shweta R. Khajuria - Evercore ISI Institutional Equities, Research Division - Analyst : Okay. With that, we are out of time. Gary Swidler, COO and CFO for Match Group, thanks so much for joining us. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 07, 2022 / 4:00PM, MTCH.OQ - Match Group Inc at Evercore TMT Conference