Match Group, Inc. · NASDAQ:MTCH
Match — Q1 2019 Earnings Presentation
19 slides from Match's earnings presentation, May 7, 2019
Slide 1: Q1 2019 Investor Presentation – May 7, 2019
Q1 2019 Investor Presentation – May 7, 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: Positioning for Growth in APAC
Positioning for Growth in APAC Targeting half of global TAM (roughly 300mm people) that is currently underpenetrated Strategy Japan •2 top-5 dating apps Realigned management to (Pairs #1, Tinder #4) focus on major opportunities •Online dating stigma across 3 key regions continuing to erode Seoul T
Slide 5: Tinder: Reinforcing Brand Leadership with Young Singles
Tinder: Reinforcing Brand Leadership with Young Singles Cultural Events / Live Experiences Richer Content Spring Break Mode introduced on Tinder U in March, allowed users to connect Increasing focus on video content ahead of their trip ‒ Loops, Tinder’s first video feature, Festival Mode intro
Slide 6: Emerging Brands Gaining Traction
Emerging Brands Gaining Traction Priority is on user experience and growth, with Latino Dating App Dating App for Black Singles monetization to follow 1.2mm cumulative downloads 900k cumulative downloads Global Quarterly Downloads1 Continues to scale rapidly domestically and in key 400,000 inter
Slide 7: Match Redesign
Match Redesign Initial Rollout Seeing Promising Results Modern, simple UI with a bold new look More engaging profiles with customized topics to keep them fresh Better quality of matches through algorithmic improvements Innovative ‘What If’ feature to enable serendipitous matches Higher pro
Slide 8: Financial Overview and Outlook
Financial Overview and Outlook 8
Slide 9: Tinder: Strong Start to the Year in Direct Revenue Growth
Tinder: Strong Start to the Year in Direct Revenue Growth Direct Revenue growth of 38% YoY in Q1 Optimizations contributed to 36% YoY Average Subscriber growth Tinder ARPU up 2% YoY (meaningfully higher on an F/X neutral basis) Marketing as a percentage of revenue down over 200 bps vs. a year
Slide 10: Q1 2019 Average Subscribers and ARPU
Q1 2019 Average Subscribers and ARPU Average Subscribers (000s) North America International Total 8,613 4,361 4,252 7,433 3,976 3,457 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 As Reported F/X Neutral YoY YoY ARPU Q1 2018 Q1 2019 Q1 2018 Q1 2019 Change Change North America $0.58 $0.60 2% $0.58 $0.60 3% Int
Slide 11: Q1 2019 Results
Q1 2019 Results Revenue ($M) Operating Income ($M) Adjusted EBITDA ($M) $465 $14 0 $407 $119 $155 $12 0 $112 $138 $216 $10 0 $181 $80 $60 $238 $40 $211 $20 $15 $11 $0 Q1'18 Q1'19 Q1'18 Q1'19 Q1'18 Q1'19 Direct North America Direct International Indirect Margin Margin 34% 33% 28% 26% Revenue Q1’19 Yo
Slide 12: Marketing Spend Continues to Decline as a % of Revenue
Marketing Spend Continues to Decline as a % of Revenue Over the past 2 years, Q1 marketing spend as a % of revenue is down ~10 percentage points Q1 Selling & Marketing expense is roughly flat vs. Q1 2018 Q1 Q2 Q3 Q4 36% 29% 28% 28% 26% 24% 21% 23% 23% Q1'2017 Q1'2018 Q1'2019 Q2'2017 Q2'2018 Q3'2
Slide 13: Financial Outlook
Financial Outlook Metric Q2 2019 Total Revenue $480 to $490 million Adjusted EBITDA $190 to $195 million Q2 2019 Trends remaining consistent at Tinder, Other Brands and Indirect Revenue Assumes YoY F/X headwinds continue Operating leverage continues to drive strong margins Continuing optimiz
Slide 14: Appendix
Appendix matchgroup
Slide 15: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three Months Ended March 31, ($Ms) 2019 2018 Net Earnings attributable to Match Group, Inc. shareholders $123.0 $99.7 Add back: Net earnings attributable to noncontrolling interests - (0.1) Income tax benefit (27.8) (12.5) Other expense, net 1.5 7.2 Interest expense
Slide 16: F/X Reconciliation
F/X Reconciliation ($Ms, except ARPU) Three Months Ended March 31, 2019 Change % Change 2018 Revenue, as reported $ 464.6 $ 57.3 14% $ 407.4 Foreign exchange effects 18.0 Revenue, excluding foreign exchange effects $ 482.6 $ 75.3 18% $ 407.4 Direct Revenue, as reported $ 454.0 $ 61.2 16% $ 392.7 For
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2019 ($Ms) Q2 FY Operating Income $164 to $169 $625 to $675 Stock-based compensation expense 17 80 Depreciation & Amortization of intangibles 9 35 Adjusted EBITDA $190 to $195 $740 to $790 17
Slide 18: Q1 2019 & Q1 2018 Operating Expenses
Q1 2019 & Q1 2018 Operating Expenses % of % of ($Ms) Q1 2019 Q1 2018 Change Revenue Revenue Cost of Revenue $120.2 26% $93.9 23% 28% Selling and marketing expense 118.7 26% 118.2 29% 0% General and administrative expense 54.4 12% 42.8 10% 27% Product development expense 44.3 10% 31.9 8% 39% Deprecia
Slide 19: Trended Key Metrics
Trended Key Metrics 2017 2018 2019 FY Q1 Q2 Q3 Q4 FY Q1 Average Subscribers (000s) North America 3,569 3,976 4,131 4,278 4,254 4,161 4,361 International 2,839 3,457 3,592 3,812 3,980 3,712 4,252 Total 6,408 7,433 7,723 8,090 8,234 7,873 8,613 ARPU North America $0.56 $0.58 $0.58 $0.59 $0.59 $0.59 $0