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Match Group:Quarterly Results/2025 Q2: Difference between revisions
→Insights from Q1 2025 earnings call
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== | == Key insights from Q1 2025 earnings call == | ||
==== Strategy ==== | |||
* Rascoff said one of his priorities is to unify the four brands into an organization that prioritizes innovation and user outcome. | |||
* Match Group will centralize key functions: "Today, we announced a reorganization, centralizing key functions, including select technology and data services, customer care and content moderation, media buying and international go-to-market functions, while still allowing each brand to maintain their independence and product road maps," Rascoff said. | |||
* Job cut reduction of 13% will save the company around $100 million in annual costs, including $45 million in 2025. | |||
* Plan to reduce stock-based compensation (SBC) by 15%. | |||
* They will reinvest the cost-savings in international expansion (including products). | |||
* Reduced 18% of Tinder workforce and eliminated 24% of Tinder managers. | |||
==== Product ==== | |||
* Rascoff said they recently launched Double-Date feature in several European markets. | |||
* "Nearly 90% of Double Date profiles are from users under 29 and women using Double Date are 3x as likely to swipe right on a pair than on an individual," Rascoff said. | |||
* The Game Game on iOS (interaction assistant) tested in April with 0.75 million Tinder users. | |||
* Testing AI-enabled Experience in New Zealand and early signs are promising. | |||
* Testing new safety features i.e in collaboration with World ID and have seen more than 15% reduction in bad actor reports. | |||
* AI-Powered Recommendation Algorithm has driven 15% increase in matches at Hinge since launching in March. | |||
* Rascoff said they are operating at twice the pace they had in a couple of quarters ago, adding they have had two quarters of great product momentum. | |||
* Rascoff flagged that product turnarounds take time. | |||
==== User trends at Tinder ==== | |||
* CFO Bailey said they expect user trends at Tinder to continue declining at a stable rate until product innovation bears fruit. | |||
==== Market ==== | |||
* Hinge is on track to launch in Brazil and Mexico in H2 2025. | |||
* The League is planning to launch in Middle East and India. | |||
* Pairs recently launched in South Korea. | |||
* Azar continues its expansion in USA and Western Europe. | |||
==== Q1 2025 results ==== | |||
* Excluding the exit of livestreaming business, Q1 revenue was down 2%. | |||
* Indirect revenue rose 31% y/y driven by increase in their top advertisers. Bailey doesn't expect this performance to repeat and they are reiterating their guidance for indirect revenue to be flat y/y in 2025. | |||
* Hinge's RPP rose 3% y/y driven by price optimization across several regions. | |||
* Cost of revenue declined 8% driven by lower IAP fees and reduced variable expenses from the shutdown of live streaming business mid of last year. | |||
* Selling and marketing expenses declined 5% due to lower marketing expenses at Tinder and Match Group Asia. | |||
* G&A increased 5% driven by severance and other employee compensation costs. | |||
* Product development costs rose 4% driven by SBC expense. | |||
==== Apple app store ==== | |||
* CFO Steven Bailey said 45% of their revenue comes from the US and two-third of that are in Apple App stores and they pay Apple around 27% in commission. | |||
* If they save 10% on Apple app store fees, that would be savings of around $25 million. | |||
* Apple-EPIC court ruling impact has not been included in the guidance. | |||
==== Marketing ==== | |||
* Performance marketing has no limited impact on Tinder and Hinge. They mainly use brand marketing at Tinder and Hinge. | |||
== References == | == References == | ||