Match Group sees Q3 revenue $875M-$885M, consensus $863.4M

Sees Q3 operating income $320M-$325M. The company states: “For Q3, we expect Total Revenue of $875 to $885 million, up 8% to 9% Y/Y compared to Q3 ’22. For Tinder, we expect Direct Revenue growth of close to 10% Y/Y over Q3 ’22. With Tinder’s 1H ’23 revenue initiatives continuing to build momentum, coupled with stronger user growth and an improving product experience, we’re confident that Tinder can deliver solidly double-digit Y/Y Direct Revenue growth in Q4. At Hinge, we expect Y/Y Direct Revenue growth in Q3 to further accelerate, as core market user growth, European expansion, and new monetization efforts drive incremental revenue for the business. Across MG Asia, we expect low-single digit Y/Y declines in Direct Revenue in Q3, with continued improving performance at Hyperconnect, but no notable change at Pairs. Within E&E, we expect low-single digit Y/Y declines in Direct Revenue. For Q3, we expect Match Group AOI of $320 to $325 million, up 13% to 14% Y/Y, with a margin of 37% at the mid-point of the ranges. We expect to spend a higher percentage of Total Revenue on marketing in Q3 compared to historical levels as we accelerate our investments in our growth businesses, including Tinder and Hinge as well as newer bets such as Archer and The League. Match Group is on track to deliver better AOI margins for the full year compared to 2022, given Tinder’s revenue acceleration and company-wide cost discipline.”