Match Group Inc Q1 2025 Earnings Call Transcript

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

Question: Nathaniel Feather - Morgan Stanley - Analyst : Hey everyone, thanks for the question. I'm interested to hear 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?

Question: Cory Carpenter - JPMorgan Chase & Co - Analyst : Thank you and good morning, Spencer, you certainly enacted a lot of change in your first few months. Hoping you could talk about your priorities for the company and how you may do things differently while still standing behind the Investor Day targets you just mentioned. Thank 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 08, 2025 / 12:30PM, MTCH.OQ - Q1 2025 Match Group Inc Earnings Call

Question: Ygal Arounian - Citigroup Inc. - Analyst : Hey, good morning guys. Just on the cost cuts and the investment first. So in -- with the cost cuts here and $100 million annual run rate and kind of using that to feel more confident in hitting Investor Day margin targets while reinvesting. So what's changed exactly since December when you set these targets? Is it the feeling that you need more product investment to get to better growth? Just trying to understand that dynamic. And then maybe we can talk a little bit about the Tinder product stuff and that broader definition of connection. Spencer, in the letter, in your remarks, you talked a little bit about some of the products today that are trying to achieve that. Maybe just expanding a little bit on how that road map -- product road map might change to achieve this a little bit better over the coming years. Thanks 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 08, 2025 / 12:30PM, MTCH.OQ - Q1 2025 Match Group Inc Earnings Call

Question: Shweta Khajuria - Wolfe Research - Analyst : Let me try two, please. One is on app store changes and impact -- potential impact. Are you making any changes across your apps to allow for alternative routes? And if so, have you tested them, and what are you seeing? Any update on that would be great. And then the second question is, you mentioned, if macro gets worse, you have some thoughts on maybe potential pricing changes or other changes that you could do -- you could make. Could you please provide some color on that? Thanks a lot. 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 08, 2025 / 12:30PM, MTCH.OQ - Q1 2025 Match Group Inc Earnings Call

Question: Shweta Khajuria - Wolfe Research - Analyst : Thank you. That was very helpful.

Question: Curtis Nagle - BofA Securities - Analyst : Terrific. So just a couple of ones for me. Would you be able to elaborate just on the surge in advertising in 1Q? I guess, was there something you specifically did which drove it? And would you expect this to stay for the year?

Question: Benjamin Black - Deutsche Bank AG - Analyst : Great. So Spencer, can you just dig in a little bit into what you're seeing in New Zealand for Tinder and AI discovery? Are match rates improving? Are you seeing a lift to sort of dating outcomes? And then, I guess, relatedly, you touched on this in the letter, but -- in your prepared remarks, but how are you finding the data that you need to power your AI efforts? And then secondly, your competitor [Bumble] last night spoke about pulling back on marketing, particularly performance spend. I'd be curious to hear how that potentially impacts you, if you sort dating outcomes to double down and pick up users? Or does it generally not necessarily have an impact on your business? Thank you.

Question: Benjamin Black - Deutsche Bank AG - Analyst : Very helpful. Thank you.

Question: Kenneth Gawrelski - Wells Fargo Securities - Analyst : Thank you very much. Two for Spencer, if I may, please. First, Spencer, how would you assess the health of the overall online dating industry, if we're still seeing industry headwinds overall, how effective do you believe Match can be in driving improved momentum strictly through company-specific product innovation especially at your most scale brands? And then a second follow-up for you, Spencer. You spoke to the increased product velocity, I think, that you can see internally in terms of code base, et cetera. What are the external markers that we -- that you would point us to, to monitor your progress?

Question: Jason Helfstein - Oppenheimer & Co. Inc. - Analyst : So I just want to ask -- just dig a little more into the Tinder MAU down 9% Y/Y. I guess, how much of that is still intentional, i.e., whether it's still getting bad actors off the platform or kind of there's traffic that is like your data shows like low conversion and you're kind of either choosing to invest in other ways or maybe not invest money in certain ways? So just maybe dig a little into like how much of that, I guess, 9% down Y/Y was intentional. And then just longer term, I mean, there's definitely been a discussion of should you be running the business more for kind of revenue and EBITDA, kind of like Netflix is now, and not disclosing kind of user and payer metrics? I mean, Spencer, just give us your thought, does disclosing all this data to us inhibit your ability to make the right long-term decisions for the business? Thank you.

Question: Christopher Kuntarich - UBS Investment Bank - Analyst : Great. Maybe just going back to the trust and safety dynamics. Any update to be sharing around mandatory face photos and how we should be thinking about a potential rollout in the US? And then just one quick follow-up. I think you had been assuming 2.5 points of FX -- or headwind in the full year guidance. I think it's 1 point of tailwind in 1Q. Any update there?

Question: Robert Zeller - Truist Securities, Inc. - Analyst : This is Robert Zeller on for Youssef. I'm just curious, what does a rollout in a new market typically look like in terms of additional costs in the first couple of years, in user growth and then the ramp of revenues?

Question: Daniel Salmon - New Street Research LLP - Analyst : Maybe an inappropriate one to wrap up the call with. But Spencer, obviously, some changes at the Board level here recently with some changes, and seeing -- to see Kelly Campbell join, Alan Spoon exit, formally expanding the size of it. Would love to just hear your thoughts on how those changes help improve the broader strategy for the company over the long term. And then just any update you can give us on your dialogue with, I don't know if we call them activist investors, or maybe publicly active investors. I would just love to hear if there's anything you can add to that about where your dialogue sits. Is that largely with Steven? Does that reach up to your level or even to the Board? Any color would be great. Thanks. 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 08, 2025 / 12:30PM, MTCH.OQ - Q1 2025 Match Group Inc Earnings Call

Question: Daniel Salmon - New Street Research LLP - Analyst : Thank you very much. I look forward to speaking with you all again very shortly. Have a great day. Thanks.