Slide 1: Q3 2019 Investor Presentation – November 5, 2019
Q3 2019 Investor Presentation – November 5, 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. These forward-looking statements include, among others, s
Slide 3: Business Update
Business Update matchgroup
Slide 4: Tinder: Strong Engagement, Retention and Growth Globally
Tinder: Strong Engagement, Retention and Growth Globally Increasing Engagement & Persistently High Accelerating International Growth Retention Globally Continuous product innovation drives increased usage, Product localization and marketing efforts driving leading to better user outcomes and imp
Slide 5: Tinder: Swipe Night
Tinder: Swipe Night Exciting Experience That Increased Engagement and Original Interactive Content Targeted to Gen Z Created Buzz Weekly 5-minute interactive video series Significant engagement, particularly among Gen Z and females New episodes ran every Sunday night in October, from 6pm – mid
Slide 6: New Bets Continuing to Show Momentum
New Bets Continuing to Show Momentum New ‘Hingie’ campaign further Massive growth in India downloads Apps using the Swipe® feature accelerating downloads targeting specific U.S. demos Starting marketing investment in Planning to focus on monetization select Middle Eastern countries; Init
Slide 7: Launching Live Video Across Several Platforms
Launching Live Video Across Several Platforms Live video interactions increasingly ubiquitous among younger generations Proven monetization and synergies with dating platforms in U.S. and Europe Provides TAM expansion and opportunity to drive higher engagement Highly prevalent product featur
Slide 8: Financial Results and Outlook
Financial Results and Outlook 7
Slide 9: Tinder: Accelerated Revenue Growth
Tinder: Accelerated Revenue Growth Direct Revenue increased 49% YoY in Q3 38% YoY Average Subscriber growth 9% YoY ARPU growth (higher on an F/X neutral basis) Average Subscribers (in 000’s) 5,670 5,233 4,730 4,346 4,113 3,769 3,470 3,101 2,558 2,082 1,858 1,631 1,386 1,121 915 714 Q4'15 Q1'16 Q
Slide 10: Q3 2019 Average Subscribers
Q3 2019 Average Subscribers Average Subscribers (in 000’s) North America International Total 4,917 9,612 4,695 4,278 8,090 3,812 Q3'18 Q3'19 Q3'18 Q3'19 Q3'18 Q3'19 9
Slide 11: ARPU
ARPU Tinder Match Group $0.65 $0.62 $0.59 $0.59 $0.55 $0.57 $0.57 $0.50 $0.35 $0.20 Q3'16 Q3'17 Q3'18 Q3'19 North America International Total Q3'18 Q3'19 Tinder ARPU now equivalent to aggregate ARPU at other Match Group brands, with further room to grow 10
Slide 12: Q3 2019 Results
Q3 2019 Results Revenue ($M) Operating Income ($M) Adjusted EBITDA ($M) $541 $20 0 $25 0 $177 $444 $18 0 $206 $262 $16 0 $20 0 $140 $14 0 $165 $198 $12 0 $15 0 $10 0 $80 $10 0 $60 $269 $234 $40 $50 $20 $12 $11 – – Q3'18 Q3'19 Q3'18 Q3'19 Q3'18 Q3'19 Direct North America Direct International Indirect
Slide 13: Strong Balance Sheet and Free Cash Flow
Strong Balance Sheet and Free Cash Flow Leverage1 Gross Leverage Net Leverage 4.5x 4.1x 3.0x 2.7x 2.3x 2.3x 2.2x 2.1x 2.1x 1.7x 12/31/2015 12/31/2016 12/31/2017 12/31/2018 9/30/2019 Free Cash Flow Conversion %2 53% 62% 37%88% 37%78% Free Cash Flow ($M) FY’2016 FY’2017 FY’2018 YTD 2019 Net Cash From
Slide 14: Financial Outlook
Financial Outlook Metric Q4 2019 Total Revenue $545 to $555 million Adjusted EBITDA $205 to $210 million Q4 2019 Strong top and bottom line growth Margin consistent with 2018 despite ~$25 million of discretionary long-term investments and incremental legal costs FY 2019 Revenue and Adjusted EB
Slide 15: Appendix
Appendix matchgroup
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three Months Ended September 30, ($Ms) 2019 2018 Net Earnings attributable to Match Group, Inc. shareholders $151.5 $130.2 Add back: Net loss attributable to noncontrolling interests (0.1) (2.6) Loss from discontinued operations, net of tax - 0.4 Income tax provision
Slide 17: F/X Reconciliation
F/X Reconciliation ($Ms, except ARPU) Three Months Ended September 30, 2019 2019 Change % Change 2018 Revenue, as reported $ 541.5 $ 97.6 22% $ 443.9 Foreign exchange effects 8.3 Revenue, excluding foreign exchange effects $ 549.8 $ 105.9 24% $ 443.9 Direct Revenue, as reported $ 530.9 $ 99.4 23% $
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2019 ($Ms) Q4 Operating Income $177 to $182 Stock-based compensation expense 18 Depreciation & Amortization of intangibles 9 Adjusted EBITDA $205 to $210 Note: Rounding differences may occur 17
Slide 19: Operating Expenses
Operating Expenses % of % of ($Ms) Q3 2019 Q3 2018 Change Revenue Revenue Cost of Revenue $138.2 26% $107.5 24% 29% Selling and marketing expense $113.6 21% $108.4 24% 5% General and administrative expense $67.8 13% $45.2 10% 50% Product development expense $36.6 7% $34.0 8% 8% Depreciation $8.1 1%
Slide 20: Trended Key Metrics
Trended Key Metrics 2017 2018 2019 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Average Subscribers (000s) North America 3,569 3,976 4,131 4,278 4,254 4,161 4,361 4,518 4,695 International 2,839 3,457 3,592 3,812 3,980 3,712 4,252 4,562 4,917 Total 6,408 7,433 7,723 8,090 8,234 7,873 8,613 9,080 9,612 ARPU North Amer