Slide 1: Q2 2019 Investor Presentation – August 6, 2019
Q2 2019 Investor Presentation – August 6, 2019
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. Similarly, statements herein that describe Match Group’s
Slide 3: Business Update
Business Update matchgroup
Slide 4: APAC: Executing on Our Growth Strategy
APAC: Executing on Our Growth Strategy Harmonica App to Address Global Muslim Building on Our Leading Position in Japan Demographic Japan: Quarterly App Downloads for Top 5 Brands1 Invested in and brought on team behind Harmonica, Pairs and Tinder continue to outpace the market an app based in Egy
Slide 5: Tinder: Significant Product Momentum
Tinder: Significant Product Momentum Optimizations of Existing Features Improved recommendation engine to drive more meaningful interactions Ongoing enhancements to paywall and pricing Improved Gold merchandising New Features Serving Unparalleled Global User Base Gold Merchandising Tinder Lite
Slide 6: OkCupid: Renewed Success in North America, Building Internationally
OkCupid: Renewed Success in North America, Building Internationally North America India and International 2018 product and brand marketing OkCupid India Quarterly App Downloads1 revamp reinvigorated growth 800,000 Additional traction through optimizations 700,000 in 2019 600,000 Led to 6 conse
Slide 7: Hinge and Match: Solid Progress
Hinge and Match: Solid Progress Continued Momentum at Hinge Match Product Improvements Global downloads increased >3x YoY in Q2’19 Initial focus on modernizing and improving core product seeing positive user response ‒ Strong traction in largest U.S. cities, now spreading to smaller cities Con
Slide 8: Financial Results and Outlook
Financial Results and Outlook 7
Slide 9: Tinder: Continued Outstanding Performance
Tinder: Continued Outstanding Performance Direct Revenue growth of 46% YoY in Q2 39% YoY Average Subscriber growth 6% YoY ARPU growth (meaningfully higher on an F/X neutral basis) Second highest ever sequential increase in Average Subscribers Average Subscribers (in 000’s) 5,233 4,730 4,346 4,11
Slide 10: Q2 2019 Average Subscribers and ARPU
Q2 2019 Average Subscribers and ARPU Average Subscribers (in 000’s) North America International Total 4,518 4,562 9,080 4,131 7,723 3,592 Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 As Reported F/X Neutral YoY YoY ARPU Q2 2018 Q2 2019 Q2 2018 Q2 2019 Change Change North America $0.58 $0.60 4% $0.58 $0.61 4%
Slide 11: Q2 2019 Results
Q2 2019 Results Revenue ($M) Operating Income ($M) Adjusted EBITDA ($M) $498 $20 0 $204 $18 0 $173 $421 $176 $16 0 $150 $236 $14 0 $186 $12 0 $10 0 $80 $60 $222 $251 $40 $20 $13 $11 – Q2'18 Q2'19 Q2'18 Q2'19 Q2'18 Q2'19 Direct North America Direct International Indirect Margin Margin 42% 41% 36% 35%
Slide 12: Financial Outlook
Financial Outlook Metric Q3 2019 Total Revenue $535 to $545 million Adjusted EBITDA $200 to $205 million FY 2019 - Raising full year expectations High teens revenue growth (vs mid-teens previously) $770 – 800 million of EBITDA (vs $740 – 790 million previously) ‒ Includes a number of discretiona
Slide 13: Appendix
Appendix matchgroup
Slide 14: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three Months Ended June 30, ($Ms) 2019 2018 Net Earnings attributable to Match Group, Inc. shareholders $128.0 $132.5 Add back: Net (loss) attributable to noncontrolling interests (0.0) (1.1) Income tax provision 23.7 11.5 Other income, net (2.5) (11.0) Interest expe
Slide 15: F/X Reconciliation
F/X Reconciliation ($Ms, except ARPU) Three Months Ended June 30, 2019 2019 Change % Change 2018 Revenue, as reported $ 498.0 $ 76.8 18% $ 421.2 Foreign exchange effects 15.8 Revenue, excluding foreign exchange effects $ 513.8 $ 92.6 22% $ 421.2 Direct Revenue, as reported $ 487.3 $ 79.6 20% $ 407.7
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2019 ($Ms) Q3 FY Operating Income $173 to $178 $650 to $680 Stock-based compensation expense 18 85 Depreciation & Amortization of intangibles 9 35 Adjusted EBITDA $200 to $205 $770 to $800 15
Slide 17: Operating Expenses
Operating Expenses % of % of ($Ms) Q2 2019 Q2 2018 Change Revenue Revenue Cost of Revenue $126.7 25% $97.3 23% 30% Selling and marketing expense $94.9 19% $90.3 21% 5% General and administrative expense $62.2 12% $42.2 10% 48% Product development expense $32.7 7% $32.6 8% 0% Depreciation $8.2 2% $8.
Slide 18: Trended Key Metrics
Trended Key Metrics 2017 2018 2019 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Average Subscribers (000s) North America 3,569 3,976 4,131 4,278 4,254 4,161 4,361 4,518 International 2,839 3,457 3,592 3,812 3,980 3,712 4,252 4,562 Total 6,408 7,433 7,723 8,090 8,234 7,873 8,613 9,080 ARPU North America $0.56 $0.58 $0.58