Match Group Inc Q3 2024 Earnings Call Summary

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

Question: Ross Sandler - Barclays Bank - Analyst : Great. So I guess, Gary, starting with the Tinder top of funnel trends, could you just elaborate a little bit more on what's going on? You mentioned iOS and a few other things around top of funnel and the weaker MAU at the end of 3Q and then what's happening right now in 4Q. And as we turn ahead to '25, other than cranking on marketing, what other trends might help drive top of funnel at Tinder? And I guess, related to this, did you feel like Tinder's operating margin at 52% is at the right level? Or how do we think about that long term?

Question: Benjamin Black - Deutsche Bank AG - Analyst : Could you help us understand what's contributing to the a la carte delays here? Is it product market fit? Is it pricing? Just any additional color would be really helpful. And when should we think about these products or features going live? And then I guess relatedly, you've spoken about unbundling some of your -- the features that are included in your subscriptions at Tinder, things like Passport, the Likes You feature. Can you just give us an update as to where we stand there?

Question: Jason Helfstein - Oppenheimer & Co. Inc. - Analyst : I just want to dig in a bit more on the payers as far as like 3Q to 4Q at Tinder. I mean, obviously, when you're kind of modeling this out, you're looking over time. Was there any kind of pull-forward that you think could have happened in the quarter due to certain initiatives, whether -- like intended or unintended that ultimately resulting in that lower payer number in the fourth quarter? Or is it really the point you were making about the lower starting MAU and then the ALC headwinds combined with potentially the iOS issues?

Question: John Blackledge - TD Cowen - Analyst : Great. So on the Hinge 4Q revenue guide, the 4Q revenue growth looks really strong, but decelerating a bit more than we expected. If you could provide any color on drivers of Hinge revenue growth, that would be great.

Question: Nathaniel Feather - Morgan Stanley - Analyst : Yeah, really encouraging momentum there at Hinge. Want to dig in a bit more on Your Turn Limits future. It's rare you can launch a feature that increases friction and engagement. First, anything you can give on user receptivity? Has there been any user growth or churn impact as you pull that out? And then second, do you see opportunities to nudge people to deeper engage with matches they've already made either at Hinge or other brands in the portfolio?

Question: Ygal Arounian - Citigroup Inc. - Analyst : Going back to Tinder and just think about the comments on how product kind of leads the way over marketing at first. And I know we'll hear a lot more about products from -- at the Investor Day in a few weeks, but you called out a few products like spotlight drops, you talked about the broadening of the Explore tab. What impacts are you seeing there? Anything else you could help us think through around the cadence of products at Tinder and kind of where we're going from here?

Question: Cory Carpenter - JPMorgan Chase & Co - Analyst : Gary, you talked a bit about the impact from the 4Q guidance on 2025. Any more color or puts and takes you can give us as you think about that initial '25 outlook?

Question: Justin Patterson - KeyBanc Capital Markets Inc. - Analyst : Great. Gary, I wanted to touch on that Evergreen & Emerging stability a little bit more. This quarter was less extreme in terms of sequential revenue declines. How much closer are we towards seeing the Emerging side of the business start to offset the Evergreen declines? And then from the margin perspective, you did indicate that there's potential for that to go higher as we see some of the cost efficiencies come through. How much higher do you think we can go? I assume you still have some investment in there to support that Emerging growth?

Question: James Heaney - Jefferies LLC - Analyst : You've been able to hold your margin target at 36% despite all the moving pieces this year. How do you get comfortable that you're making just the right levels of investment across the business, Tinder and Hinge?

Question: Daniel Salmon - New Street Research LLP - Analyst : To BK or Gary, I guess, in past letters you noted that M&A is not on the table right now. My question is whether you and the Board are considering divestitures at all. You've talked about -- obviously, you've exited live streaming and then we've got the new disclosures on business unit profitability. That's the type of thing that makes it easier for us to analyze the company if you are considering divestitures or other actions. So it would be great just to hear how you're thinking about the portfolio these days?

Question: Shweta Khajuria - Wolfe Research - Analyst : Let me try two, please. On brand perception, could you please talk about how that has trended over the past quarter and quarter-to-date. And any thoughts on how you plan to continue to improve Tinder's brand perception as we think about next year? Are you still targeting key demographic segments like Gen Z and women? And then I guess my second question is on the incoming CFO, Steve Bailey. Could you please talk about the decision to transition to him? Why now? Why him?

Question: Curtis Nagle - BofA Securities - Analyst : Great. Two ones, I guess, based on advertising. One, just, Gary, could you dig a little bit more into the advertiser pull-back in the holidays? Just I guess, why is it short in holiday or maybe allocation in other buckets for some of your partners? And then in terms of the shift in marketing spend into 4Q, seasonally kind of a weaker quarter. I guess, just what's driving that? Your competitor is doing the same thing. So just curious what's going on there.