Match Group Q2 2024 10-Q Filed

Ticker: MTCH · Form: 10-Q · Filed: Aug 1, 2024 · CIK: 891103

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

**Match Group Q2 2024 10-Q is in! Financials and operations detailed for the dating giant.**

AI Summary

Match Group, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business segments are presented, reflecting the company's ongoing activities in the online dating industry.

Why It Matters

This filing provides investors with the latest financial results and operational details for Match Group, offering insights into the performance of its dating platforms during the second quarter of 2024.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial and operational information that can impact stock price.

Key Numbers

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on August 1, 2024.

What was the previous fiscal year end date mentioned?

The previous fiscal year end date mentioned is December 31, 2023.

What is the company's primary business address?

The company's business address is 8750 NORTH CENTRAL EXPRESSWAY, SUITE 1400, DALLAS, TX 75231.

What is the SIC code for Match Group, Inc.?

The Standard Industrial Classification (SIC) code for Match Group, Inc. is 7370, which falls under SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC.

Filing Stats: 4,760 words · 19 min read · ~16 pages · Grade level 17.6 · Accepted 2024-08-01 16:07:43

Key Financial Figures

Filing Documents

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 44 PART II Item 1.

Legal Proceedings

Legal Proceedings 45 Item 1A.

Risk Factors

Risk Factors 47 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 5 Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 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) June 30, 2024 December 31, 2023 (In thousands, except share data) ASSETS Cash and cash equivalents $ 837,792 $ 862,440 Short-term investments 5,812 6,200 Accounts receivable, net of allowance of $ 601 and $ 603 , respectively 324,269 298,648 Other current assets 118,049 104,023 Total current assets 1,285,922 1,271,311 Property and equipment, net of accumulated depreciation and amortization of $ 280,485 and $ 249,223 , respectively 181,138 194,525 Goodwill 2,255,302 2,342,612 Intangible assets, net of accumulated amortization of $ 135,776 and $ 121,489 , respectively 275,721 305,746 Deferred income taxes 235,246 259,803 Other non-current assets 135,600 133,889 TOTAL ASSETS $ 4,368,929 $ 4,507,886 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Accounts payable $ 17,223 $ 13,187 Deferred revenue 187,076 211,282 Accrued expenses and other current liabilities 308,036 307,299 Total current liabilities 512,335 531,768 Long-term debt, net 3,845,571 3,842,242 Income taxes payable 26,696 24,860 Deferred income taxes 17,477 26,302 Other long-term liabilities 96,962 101,787 Commitments and contingencies SHAREHOLDERS' EQUITY Common stock; $ 0.001 par value; authorized 1,600,000,000 shares; 293,024,212 and 289,631,352 shares issued; and 260,249,674 and 268,890,470 outstanding at June 30, 2024 and December 31, 2023, respectively 293 290 Additional paid-in capital 8,663,157 8,529,200 Retained deficit ( 6,874,517 ) ( 7,131,029 ) Accumulated other comprehensive loss ( 488,993 ) ( 385,471 ) Treasury stock; 32,774,538 and 20,740,882 shares, respectively ( 1,430,180 ) ( 1,032,538 ) Total Match Group, Inc. shareholders' equity ( 130,240 ) ( 19,548 ) Noncontrolling interests 128 475 Total shareholders' equity ( 130,112 ) ( 19,073 ) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,368,929 $ 4,507,886 The accompanying

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 six months ended June 30, 2024, the Company recognized $ 196.5 million of revenue that was included in the deferred revenue balance as of December 31, 2023. The current deferred revenue balance at June 30, 2024 is $ 187.1 million. At June 30, 2024 and December 31, 2023, there was no non-current portion of deferred revenue. Practical Expedients and Exemptions As permitted under the practical exp

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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Direct Revenue: Americas $ 450,546 $ 429,946 $ 900,793 $ 835,873 Europe 240,193 227,718 479,552 440,234 APAC and Other 157,394 158,472 313,087 314,467 Total Direct Revenue 848,133 816,136 1,693,432 1,590,574 Indirect Revenue (principally advertising revenue) 15,933 13,416 30,281 26,102 Total Revenue $ 864,066 $ 829,552 $ 1,723,713 $ 1,616,676 Direct Revenue: Tinder $ 479,945 $ 474,746 $ 961,432 $ 915,892 Hinge 133,569 90,331 257,322 173,084 Match Group Asia (a) 73,684 76,605 145,143 152,266 Evergreen & Emerging (b) 160,935 174,454 329,535 349,332 Total Direct Revenue $ 848,133 $ 816,136 $ 1,693,432 $ 1,590,574 ______________________ (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 retrospe

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 June 30, 2024 and 2023, the Compan

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