Match Group, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Match Group, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing its financial performance and operational status.</b>

AI Summary

Match Group, Inc. (MTCH) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Match Group, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal executive offices are located in Dallas, TX. Match Group, Inc. was formerly known as IAC/InterActiveCorp. The filing is made under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking Match Group, Inc., this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data and operational insights into Match Group's performance for the first quarter of 2024. Understanding the details within this report is crucial for assessing the company's current financial health, strategic direction, and potential future performance in the online dating market.

Risk Assessment

Risk Level: low — Match Group, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant new disclosures that would suggest a high level of risk.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to understand the company's performance trends and outlook.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-08 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (First quarter of fiscal year 2024)
• 1231 — Fiscal Year End (Company fiscal year end)

Key Players & Entities

• Match Group, Inc. (company) — Filer name
• IAC/InterActiveCorp (company) — Former company name
• Dallas, TX (location) — Business address
• 2145769352 (phone) — Business phone number
• 0000891103-24-000057 (filing_id) — Accession number

FAQ

Industry Context

Match Group operates in the online dating industry, a sector characterized by network effects and evolving user engagement strategies.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the revenue and expense trends for Q1 2024.
2. Review any disclosed risks or legal proceedings.
3. Compare key financial metrics to previous periods and industry benchmarks.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first quarterly update after the year-end report.

Key Financial Figures

• $0.001 M — ich registered Common Stock, par value $0.001 MTCH The Nasdaq Stock Market LLC (Nasdaq

Filing Documents

• mtch-20240331.htm (10-Q) — 1198KB
• mtch10-q20240331ex101.htm (EX-10.1) — 71KB
• mtch10-q20240331ex102.htm (EX-10.2) — 73KB
• mtch10-q20240331ex311.htm (EX-31.1) — 9KB
• mtch10-q20240331ex312.htm (EX-31.2) — 9KB
• mtch10-q20240331ex321.htm (EX-32.1) — 5KB
• mtch10-q20240331ex322.htm (EX-32.2) — 5KB
• mtch-20240331_g1.jpg (GRAPHIC) — 73KB
• 0000891103-24-000057.txt (&nbsp;) — 5790KB
• mtch-20240331.xsd (EX-101.SCH) — 31KB
• mtch-20240331_cal.xml (EX-101.CAL) — 63KB
• mtch-20240331_def.xml (EX-101.DEF) — 165KB
• mtch-20240331_lab.xml (EX-101.LAB) — 474KB
• mtch-20240331_pre.xml (EX-101.PRE) — 336KB
• mtch-20240331_htm.xml (XML) — 660KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38 PART II Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 41 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 5 Other Information 42 Item 6. Exhibits 43

Signatures

Signatures 44 2 Table of Contents PART I FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements MATCH GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) March 31, 2024 December 31, 2023 (In thousands, except share data) ASSETS Cash and cash equivalents $ 914,929 $ 862,440 Short-term investments 5,938 6,200 Accounts receivable, net of allowance of $ 603 and $ 603 , respectively 225,129 298,648 Other current assets 103,879 104,023 Total current assets 1,249,875 1,271,311 Property and equipment, net of accumulated depreciation and amortization of $ 262,841 and $ 249,223 , respectively 187,749 194,525 Goodwill 2,286,283 2,342,612 Intangible assets, net of accumulated amortization of $ 127,200 and $ 121,489 , respectively 287,527 305,746 Deferred income taxes 249,660 259,803 Other non-current assets 142,359 133,889 TOTAL ASSETS $ 4,403,453 $ 4,507,886 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Accounts payable $ 21,193 $ 13,187 Deferred revenue 198,543 211,282 Accrued expenses and other current liabilities 299,154 307,299 Total current liabilities 518,890 531,768 Long-term debt, net 3,843,901 3,842,242 Income taxes payable 24,658 24,860 Deferred income taxes 22,072 26,302 Other long-term liabilities 101,604 101,787 Commitments and contingencies SHAREHOLDERS' EQUITY Common stock; $ 0.001 par value; authorized 1,600,000,000 shares; 291,894,753 and 289,631,352 shares issued; and 265,536,852 and 268,890,470 outstanding at March 31, 2024 and December 31, 2023, respectively 292 290 Additional paid-in capital 8,585,987 8,529,200 Retained deficit ( 7,007,831 ) ( 7,131,029 ) Accumulated other comprehensive loss ( 454,933 ) ( 385,471 ) Treasury stock; 26,357,901 and 20,740,882 shares, respectively ( 1,231,325 ) ( 1,032,538 ) Total Match Group, Inc. shareholders' equity ( 107,810 ) ( 19,548 ) Noncontrolling interests 138 475 Total shareholders' equity ( 107,672 ) ( 19,073 ) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,403,453 $ 4,507,886 The accompany

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1—THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Match Group, Inc., through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Our global portfolio of brands includes Tinder , Hinge , Match , Meetic , OkCupid , Pairs, Plenty Of Fish , Azar , BLK , and more, each built to increase our users' likelihood of connecting with others. Through our trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world. Match Group has one operating segment, Connections, which is managed as a portfolio of brands. As used herein, "Match Group," the "Company," "we," "our," "us," and similar terms refer to Match Group, Inc. and its subsidiaries, unless the context indicates otherwise. Basis of Presentation and Consolidation The Company prepares its consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of the Company, all entities that are wholly-owned by the Company and all entities in which the Company has a controlling financial interest. Intercompany transactions and accounts have been eliminated. In management's opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect, in management's opinion, all adjustments, consisting of normal and recurring adjustments, necessary for the fair presentation of our consolidated financial position, consolidated results of operations and consolidated cash flows for the periods presented. Interim results are not necessarily indicative of the results that may be expected for the full year. The accompanying unaudited consolidated financial statements should be read in conjunction wit

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued) without readily determinable fair values for impairment each reporting period when there are qualitative factors or events that indicate possible impairment. Factors we consider in making this determination include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. When indicators of impairment exist, the Company prepares quantitative assessments of the fair value of our investments in equity securities, which require judgment and the use of estimates. When our assessment indicates that the fair value of the investment is below the carrying value, the Company writes down the security to its fair value and records the corresponding charge within other income (expense), net. Revenue Recognition Revenue is recognized when control of the promised services are transferred to our customers, and in the amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Deferred Revenue Deferred revenue consists of advance payments that are received or are contractually due in advance of the Company's performance. The Company's deferred revenue is reported on a contract by contract basis at the end of each reporting period. The Company classifies deferred revenue as current when the term of the applicable subscription period or expected completion of our performance obligation is one year or less. The current deferred revenue balance as of December 31, 2023 was $ 211.3 million. During the three months ended March 31, 2024, the Company recognized $ 167.0 million of revenue that was included in the deferred revenue balance as of December 31, 2023. The current deferred revenue balance at March 31, 2024 is $ 198.5 million. At March 31, 2024 and December 31, 2023, there was no non-current portion of deferred revenue. Practical Expedients and Exemptions As permitted under the practica

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued) Disaggregation of Revenue The following table presents disaggregated revenue: Three Months Ended March 31, 2024 2023 (In thousands) Direct Revenue: Americas $ 450,247 $ 405,927 Europe 239,359 212,516 APAC and Other 155,693 155,995 Total Direct Revenue 845,299 774,438 Indirect Revenue (principally advertising revenue) 14,348 12,686 Total Revenue $ 859,647 $ 787,124 Direct Revenue: Tinder $ 481,487 $ 441,146 Hinge 123,753 82,753 Match Group Asia (a) 71,459 75,661 Evergreen & Emerging (b) 168,600 174,878 Total Direct Revenue $ 845,299 $ 774,438 ______________________ (a) Consists of the brands primarily focused on Asia and the Middle East including Pairs and Azar. (b) Consists primarily of the brands Match, Meetic, OkCupid, Plenty Of Fish, and a number of demographically focused brands. Recent Accounting Pronouncements Accounting pronouncements not yet adopted by the Company In November 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-07, which requires disclosure of significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. The additional disclosures required in ASU No. 2023-07 also apply to entities with only one segment. Additionally, ASU No. 2023-07 requires the disclosure of the title and position of the Chief Operating Decision Maker. ASU No. 2023-07 does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We expect ASU No. 2023-07 to only impact our disclosures with no im

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued) disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all periods presented. We expect ASU No. 2023-09 to only impact our disclosures with no impacts to our results of operations, cash flows, or financial condition. NOTE 2—INCOME TAXES At the end of each interim period, the Company estimates the annual effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to significant, unusual, or extraordinary items, if applicable, that will be separately reported or reported net of their related tax effects, is individually computed and recognized in the interim period in which it occurs. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of beginning-of-the-year deferred tax assets in future years or unrecognized tax benefits is recognized in the interim period in which the change occurs. The computation of the estimated annual effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in foreign jurisdictions, permanent and temporary differences, and the likelihood of the realization of deferred tax assets generated in the current year. The accounting estimates used to compute the provision or benefit for income taxes may change as new events occur, more experience is acquired, additional information is obtained or our tax environment changes. To the extent that the estimated annual effective income tax rate changes during a quarter, the effect of the change on prior quarters is included in the income tax provision in the quarter in which the change occurs. For the three months ended March 31, 2024 and 2023, the Compa

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued) NOTE 3—FINANCIAL INSTRUMENTS Equity securities without readily determinable fair values At March 31, 2024 and December 31, 2023, the carrying value of the Company's investments in equity securities without readily determinable fair values totaled $ 19.3 million and $ 14.3 million, respectively, and is included in "Other non-current assets" in the accompanying consolidated balance sheet. The cumulative downward adjustments (including impairments) to the carrying value of equity securities without readily determinable fair values through March 31, 2024 were $ 2.1 million. For both the three months ended March 31, 2024 and 2023, there were no adjustments to the carrying value of equity securities without readily determinable fair values. For all equity securities without readily determinable fair values as of March 31, 2024 and December 31, 2023, the Company has elected the measurement alternative. For the three months ended March 31, 2024 and 2023, under the measurement alternative election, the Company did not identify any fair value adjustments using observable price changes in orderly transactions for an identical or similar investment of the same issuer. Fair Value Measurements The Company categorizes its financial instruments measured at fair value into a fair value hierarchy that prioritizes the inputs used in pricing the asset or liability. The three levels of the fair value hierarchy are: Level 1: Observable inputs obtained from independent sources, such as quoted market prices for

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