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Match Group (MTCH) Q4 Earnings Grow Y/Y, Revenues Decline
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Match Group (MTCH - Free Report) reported fourth-quarter 2022 earnings of 30 cents per share, up 150% from the year-ago quarter’s loss of 60 cents per share.
The Zacks Consensus Estimate for fourth-quarter 2022 earnings was pegged at 47 cents per share.
Revenues of $786 million decreased 2% year over year, missing the Zacks Consensus Estimate by 0.33%.
Quarter in Detail
In the fourth quarter, the number of total payers declined 1% to 16.1 million compared to the prior-year quarter. The number of total payers from America and Europe decreased by 2% and 4%, respectively, whereas the Asia Pacific (APAC) saw an increase of 6% on a year-over-year basis.
America saw an increase in Payers at Tinder and Hinge. However, this was offset by a larger decline in payers at Match and Plenty of Fish. The decline in Europe Payers was driven by Tinder and Meetic, partially offset by an increase at Hinge while the increase in APAC was driven by Tinder.
Total RPP declined 1% year over year to $16. Region-wise, RPP increased 3.8% in America and decreased 14% in APAC while remaining unchanged year over year in Europe.
Europe and APAC RPPs were unfavorably impacted by the strength of the U.S. Dollar relative to the Euro and British Pound and the Japanese Yen and Turkish Lira, respectively.
Direct revenues from the Americas were up 2% to $406.5 million. Direct revenues from Europe and APAC decreased 4% to $210.3 million and 9% to $154.2 million, respectively.
Direct revenues from Tinder were flat year over year, with 3% payers growth to 10.8 million partially offset by an RPP decline of 2%.
Direct revenues from All Other Brands collectively declined 5% year over year, along with an 8% decline in payers, which was offset by 3% RRP growth. Within All Other Brands, Hinge’s direct revenues grew nearly 30% year over year in the fourth quarter of 2022.
Match Group Inc. Price, Consensus and EPS Surprise
For full-year 2022, Hinge’s direct revenues rose 44% year over year as a result of 25% payers growth and 15% RPP growth.
Operating Details
Total operating costs and expenses increased 1% year over year to $235.9 million in the fourth quarter.
Adjusted operating income was $286 million, declining 2% from the prior-year quarter, representing an adjusted operating income margin of 36%.
Balance Sheet
As of Dec 31, 2022, Match Group had a cash and cash equivalent and short-term investment of $581 million compared with $398 million as of Sep 30, 2022.
As of Dec 31, 2022, Match Group had long-term debt of $3.9 billion, the same as the previous quarter.
As of Dec 31, 2022, Match Group reported $1.2 billion of exchangeable senior notes and $750 million under its revolving credit facility. The amount was undrawn as of Dec 31.
Guidance
Match Group expects first-quarter 2023 revenues to be in the range of $790-$800 million, roughly flat year over year. Adjusted operating income for the first quarter is anticipated to be $250-$255 million, which indicates a decline of almost 12% year over year.
However, for the full year 2023, Match Group eyes revenue growth of 5-10% year over year.
Zacks Rank & Other Stocks to Consider
Currently, Match Group has a Zacks Rank #2 (Buy).
Match Group’s shares have gained 30.5% compared with the Zacks Retail and Wholesale sector’s growth of 10% in the past year.
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Match Group (MTCH) Q4 Earnings Grow Y/Y, Revenues Decline
Match Group (MTCH - Free Report) reported fourth-quarter 2022 earnings of 30 cents per share, up 150% from the year-ago quarter’s loss of 60 cents per share.
The Zacks Consensus Estimate for fourth-quarter 2022 earnings was pegged at 47 cents per share.
Revenues of $786 million decreased 2% year over year, missing the Zacks Consensus Estimate by 0.33%.
Quarter in Detail
In the fourth quarter, the number of total payers declined 1% to 16.1 million compared to the prior-year quarter. The number of total payers from America and Europe decreased by 2% and 4%, respectively, whereas the Asia Pacific (APAC) saw an increase of 6% on a year-over-year basis.
America saw an increase in Payers at Tinder and Hinge. However, this was offset by a larger decline in payers at Match and Plenty of Fish. The decline in Europe Payers was driven by Tinder and Meetic, partially offset by an increase at Hinge while the increase in APAC was driven by Tinder.
Total RPP declined 1% year over year to $16. Region-wise, RPP increased 3.8% in America and decreased 14% in APAC while remaining unchanged year over year in Europe.
Europe and APAC RPPs were unfavorably impacted by the strength of the U.S. Dollar relative to the Euro and British Pound and the Japanese Yen and Turkish Lira, respectively.
Direct revenues from the Americas were up 2% to $406.5 million. Direct revenues from Europe and APAC decreased 4% to $210.3 million and 9% to $154.2 million, respectively.
Direct revenues from Tinder were flat year over year, with 3% payers growth to 10.8 million partially offset by an RPP decline of 2%.
Direct revenues from All Other Brands collectively declined 5% year over year, along with an 8% decline in payers, which was offset by 3% RRP growth. Within All Other Brands, Hinge’s direct revenues grew nearly 30% year over year in the fourth quarter of 2022.
Match Group Inc. Price, Consensus and EPS Surprise
Match Group Inc. price-consensus-eps-surprise-chart | Match Group Inc. Quote
For full-year 2022, Hinge’s direct revenues rose 44% year over year as a result of 25% payers growth and 15% RPP growth.
Operating Details
Total operating costs and expenses increased 1% year over year to $235.9 million in the fourth quarter.
Adjusted operating income was $286 million, declining 2% from the prior-year quarter, representing an adjusted operating income margin of 36%.
Balance Sheet
As of Dec 31, 2022, Match Group had a cash and cash equivalent and short-term investment of $581 million compared with $398 million as of Sep 30, 2022.
As of Dec 31, 2022, Match Group had long-term debt of $3.9 billion, the same as the previous quarter.
As of Dec 31, 2022, Match Group reported $1.2 billion of exchangeable senior notes and $750 million under its revolving credit facility. The amount was undrawn as of Dec 31.
Guidance
Match Group expects first-quarter 2023 revenues to be in the range of $790-$800 million, roughly flat year over year. Adjusted operating income for the first quarter is anticipated to be $250-$255 million, which indicates a decline of almost 12% year over year.
However, for the full year 2023, Match Group eyes revenue growth of 5-10% year over year.
Zacks Rank & Other Stocks to Consider
Currently, Match Group has a Zacks Rank #2 (Buy).
Match Group’s shares have gained 30.5% compared with the Zacks Retail and Wholesale sector’s growth of 10% in the past year.
Expedia Group (EXPE - Free Report) , Walmart de Mexico (WMMVY - Free Report) and Alibaba (BABA - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Expedia Group’s shares have gained 30.5% in the past year. The company is expected to report its fourth-quarter fiscal 2022 results on Feb 9.
Walmart de Mexico’s shares have gained 11.2% in the same time frame. The company is expected to report fourth-quarter fiscal 2022 results on Feb 15.
Alibaba’s shares have gained 25.1% in the past year. It is scheduled to report its third-quarter fiscal 2023 results on Feb 23.