Match Group Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

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

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : All right. So maybe we'll start off higher level, BK, with you. You've been at Match for about 1 year now. What are some of the key changes you've made? And how do you think about the state of the business today?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : So we'll definitely come back to Tinder. But maybe before jumping in, there's a lot of debate around industry saturation, TAM. How do you think about the growth opportunity in online dating from here? And why haven't we seen perhaps a stronger recovery post COVID, as expected?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : So a bunch of questions on Tinder. We'll kind of start with just, as you just alluded to in the first question, Tinder was a turnaround. So where are you in the turnaround? Maybe what have you accomplished so far and what's been more difficult?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : On the price increases, so you rolled out a pretty sizable price increase in the U.S. late in 1Q. Understanding, Gary, you talk a lot about optimizing for revenue. But what gives you the confidence raising prices is the right longer-term strategy for the brand?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : And the other big optimization you've talked about is weekly subscriptions. What have the learnings been early on? And how impactful could that be to revenue or payers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 23, 2023 / 3:30PM, MTCH.OQ - Match Group Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : So one more on the financials, and BK, I want to get back to kind of more top of the funnel stuff. But Gary, the shareholder letter had a chart showing Tinder subscription revenue in the U.S. accelerating through April. Has this trend continued through May? And I guess bigger picture, like how much of the expected acceleration in the second half is simply flowing through what you've kind of done around the price optimizations and the weekly subscriptions?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : So BK, moving back to you. Optimizations were a big part of, let's call it, Act 1 of the Tinder turnaround. You also called out early signs of momentum in top of the funnel in April. Could you talk about what's driving the top of the funnel improvements? And then if you're seeing this momentum continue as well.

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Sticking on the Tinder brand campaign. I think some investors worry that maybe it's too late to shift the Tinder brand narrative. It sounds like it's working. But how would you reply to that? And kind of what are you seeing more specifically that's giving you confidence in the strategy? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 23, 2023 / 3:30PM, MTCH.OQ - Match Group Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : So a lot of optimization focus now. But looking forward, you've talked about making it a priority to increase product velocity, shots on goal if you will. What are the kind of the 1 or 2 or 3 products on the road map you'd highlight as potentially the most impactful in the next 6 to 12 months?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : What about AI in terms of just impact? And I think you've talked about some of the transformative impact you have on the space. But from a product perspective, how does that fit in?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Moving to Hinge. So it continues to be a bright spot for the portfolio. Still about 1/5 the size of Tinder. How sustainable is Hinge's growth? And how much do you think is coming at the expense of Tinder?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Could you maybe zoom in a little on the international expansion? You've clearly had a lot of early success in Europe. Kind of where are you in your international expansion efforts? And where are you most focused like the next 6 to 12 months?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Okay. Gary, a few for you, maybe on margins. So you guided to at least flat margins this year. Question we get a lot is, do you still see a path to getting back to the 40% plus margins over time? Or has this perhaps changed given the mix shift to Hinge and the lower profile margin of Hyperconnect?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Buybacks. You announced a $1 billion buyback last quarter with plans to return at least half of free cash flow over the next few years. The question is why now? And why was this the right amount?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : So one more for each of you. I think this is for you, BK. Just on Hyperconnect. It feels like you're feeling better about stability. But how do you see Hyperconnect fitting into the Match portfolio longer term? And how does it add the most value to you? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 23, 2023 / 3:30PM, MTCH.OQ - Match Group Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Okay. Gary, Tanny wanted to make sure we had 5 minutes to talk about the app store at the end. So I think you and I have talked about this for years. But what's your latest thoughts on just where we are? I know you're not assuming any improvements in the model, but where are we kind of with it? And what changes do you hope or think are on the horizon?

Question: Cory Alan Carpenter - JPMorgan Chase & Co, Research Division - Analyst : Awesome. We'll leave it there. Thank you.