Slide 1: Q4 2019 Investor Presentation – February 4, 2020
Q4 2019 Investor Presentation – February 4, 2020
Slide 2: Safe Harbor Disclosure and Definitions
Safe Harbor Disclosure and Definitions This presentation contains forward-looking statements. The use of words such as “anticipates,” “estimates,” “expects,” “plans” and “believes,” among others, generally identify forward-looking statements. These forward-looking statements include, among others, s
Slide 3: Business Update
Business Update matchgroup
Slide 4: Outstanding Revenue Growth Since IPO
Outstanding Revenue Growth Since IPO Match Group Total Revenue ($M) Tinder Direct Revenue ($M) $2,051 $1,730 $1,152 $1,331 $1,124 $979 $805 $403 $169 $47 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Note: All results are for continuing operations. 2015 and 2016 results are pro forma for POF acq
Slide 5: Tinder: Key 2020 Product Initiatives
Tinder: Key 2020 Product Initiatives Trust & Safety Product Innovation Growth Noonlight safety integration with Innovative experiences to drive User growth and engagement on-demand emergency alarm engagement (e.g. Swipe Night) Ongoing revenue optimizations Photo verification New ways for
Slide 6: Hinge: Massive Growth in New Users, Monetization Ramping
Hinge: Massive Growth in New Users, Monetization Ramping 2019 focus on product and user experience drove >2x YoY growth in downloads In 2020, deeper focus on monetization strategy ‒ Meaningful opportunity to increase both conversion and ARPU Global Downloads Accelerating1 Conversion and ARPU Ups
Slide 7: OkCupid: Leveraging Proven Playbook for Global Growth
OkCupid: Leveraging Proven Playbook for Global Growth North America International Strong gains in conversion driven by consistent India execution on product and marketing Template for international expansion 8 consecutive quarters of YoY growth in direct Localized product and go-to-market st
Slide 8: Strength in Key International Geographies & Products
Strength in Key International Geographies & Products Europe Japan Annual App Downloads for Top 5 Brands1 New Campaign Meetic ‘Start Something Real’ Pairs & Tinder continue to grow market share Product and brand revamp led 2.0 M 2018 2019 to renewed Subscriber growth, 1.5 M primarily driven by impr
Slide 9: Financial Results and Outlook
Financial Results and Outlook 9
Slide 10: Q4 2019 Average Subscribers and ARPU
Q4 2019 Average Subscribers and ARPU Average Subscribers (000s) North America International Total 9,809 8,234 5,890 4,346 4,637 4,254 5,172 3,980 3,888 3,919 Q4'18 Q4'19 Q4'18 Q4'19 Q4'18 Q4'19 As Reported F/X Neutral All Other Brands 2019 YoY Average Subscriber Growth YoY YoY ARPU Q4 2018 Q4 2019 Q
Slide 11: Q4 2019 Results
Q4 2019 Results Revenue ($M) Operating Income ($M) Adjusted EBITDA ($M) $547 $20 0 $215 $180 $457 $18 0 $16 0 $151 $176 $269 $14 0 $210 $12 0 $10 0 $80 $60 $266 $235 $40 $20 $12 $12 – Q4'18 Q4'19 Q4'18 Q4'19 Q4'18 Q4'19 Direct North America Direct International Indirect Margin 33% 33% Margin 38% 39%
Slide 12: Leading Growth and Profitability Profile
Leading Growth and Profitability Profile Revenue ($M) Operating Income ($M) Adjusted EBITDA ($M) $2,051 $1,730 $983 $1,331 $775 $1,124 $779 $979 $540 $395 $649 $654 $301 $553 $469 $1,024 $409 $902 $333 $361 $741 $328 $620 $678 $242 $58 $51 $49 $53 $44 2015 2016 2017 2018 2019 2015 2016 2017 2018 201
Slide 13: Continuing to Invest in New Bets to Fuel Long-Term Growth
Continuing to Invest in New Bets to Fuel Long-Term Growth Investments in Emerging Brands1 Trending to profitability as the $37M $35 - 40M (~2% of Revenue) (~2% of Revenue)2 year progresses Investing into continued traction of niche apps Untapped opportunity in Muslim demo in Asia and MENA Int’
Slide 14: Strong FCF Expected to Enable Rapid Deleveraging Post-Separation
Strong FCF Expected to Enable Rapid Deleveraging Post-Separation Net Leverage Free Cash Flow ($M) Historical track record Expected deleveraging of deleveraging post-separation $620 $573 transaction Match has also 4.2x 4.1x returned $1.2B of capital since IPO $292 < 3.0x $213 1.5x FY 2016 FY 2017 FY
Slide 15: Financial Outlook
Financial Outlook Key Drivers for FY 2020 Reaffirm Revenue and Adjusted EBITDA growth of mid to high-teens ‒ Tinder expected to add comparable level of incremental revenue as in 2019 ‒ Tinder targeting 1M+ Subscriber additions; revenue initiatives more concentrated in H2 ‒ Non-Tinder business expe
Slide 16: Appendix
Appendix matchgroup
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three Months Ended December 31, ($Ms) 2019 2018 Net Earnings attributable to Match Group, Inc. shareholders $132.2 $115.5 Add back: Net loss attributable to noncontrolling interests (0.2) (1.6) Income tax provision 19.2 21.1 Other expense (income), net 5.9 (3.1) Inte
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations As Reported Pro Forma(a) Years Ended December 31, Years Ended December 31, 2015 2016 2017 2018 2019 2015 2016 Net earnings attributable to Match Group, Inc. shareholders $120.4 $171.5 $350.1 $477.9 $534.7 $139.7 $188.5 Add back: Net earnings (loss) attributable to no
Slide 19: F/X Reconciliation
F/X Reconciliation ($Ms, except ARPU) Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019 2019 Change % Change 2018 2019 Change % Change 2018 Revenue, as reported $ 547.2 $ 89.8 20% $ 457.3 $ 2,051.3 $ 321.4 19% $ 1,729.9 Foreign exchange effects 5.3 47.5 Revenue, excluding fo
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($Ms) Q1'2020 Operating Income $143 to $148 Stock-based compensation expense 18 Depreciation & Amortization of intangibles 9 Adjusted EBITDA $170 to $175 20
Slide 21: Q4 2019 & Q4 2018 Operating Expenses
Q4 2019 & Q4 2018 Operating Expenses % of % of ($Ms) Q4 2019 Q4 2018 Change Revenue Revenue Cost of Revenue $142.1 26% $111.2 24% 28% Selling and marketing expense $100.3 18% $103.1 23% (3%) General and administrative expense $70.6 13% $50.2 11% 41% Product development expense $38.4 7% $33.5 7% 15%
Slide 22: Trended Key Metrics
Trended Key Metrics 2016 2017 2018 2019 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Average Subscribers (000s) North America 3,268 3,569 3,976 4,131 4,278 4,254 4,161 4,361 4,518 4,695 4,637 4,554 International 2,140 2,839 3,457 3,592 3,812 3,980 3,712 4,252 4,562 4,917 5,172 4,729 Total 5,408 6,408 7,433 7