Match Group Q3 2024 10-Q Filing

TL;DR

Match Group's Q3 2024 10-Q is in, check the financials for dating app performance.

AI Summary

Match Group, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the year, detailing financial performance and operational updates. Specific financial figures for revenue, costs, and expenses for the relevant periods are included.

Why It Matters

This filing provides investors with the latest financial health and operational performance of Match Group, a major player in the online dating industry, impacting its stock valuation and future strategies.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific content can reveal risks or opportunities impacting the company's valuation.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the financial reporting quarter.)
• 2024-11-12 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2024-07-01 to 2024-09-30 — Q3 2024 Period (The specific quarter for which financial data is reported.)
• 2023-07-01 to 2023-09-30 — Q3 2023 Period (The comparative quarter from the previous year.)
• 2024-01-01 to 2024-09-30 — Year-to-Date 2024 Period (The cumulative financial data for the first nine months of 2024.)

Key Players & Entities

• Match Group, Inc. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241112 (date) — Filing date
• IAC/INTERACTIVECORP (company) — Former company name

FAQ

Key Financial Figures

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

Filing Documents

• mtch-20240930.htm (10-Q) — 1805KB
• mtch10-q20240930ex311.htm (EX-31.1) — 9KB
• mtch10-q20240930ex312.htm (EX-31.2) — 9KB
• mtch10-q20240930ex321.htm (EX-32.1) — 5KB
• mtch10-q20240930ex322.htm (EX-32.2) — 5KB
• mtch-20240930_g1.jpg (GRAPHIC) — 73KB
• 0000891103-24-000114.txt ( ) — 7184KB
• mtch-20240930.xsd (EX-101.SCH) — 35KB
• mtch-20240930_cal.xml (EX-101.CAL) — 65KB
• mtch-20240930_def.xml (EX-101.DEF) — 181KB
• mtch-20240930_lab.xml (EX-101.LAB) — 513KB
• mtch-20240930_pre.xml (EX-101.PRE) — 368KB
• mtch-20240930_htm.xml (XML) — 1010KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 45 Item 4.

Controls and Procedures

Controls and Procedures 45 PART II Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 48 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 5 Other Information 49 Item 6. Exhibits 50

Signatures

Signatures 51 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) September 30, 2024 December 31, 2023 (In thousands, except share data) ASSETS Cash and cash equivalents $ 855,532 $ 862,440 Short-term investments 5,323 6,200 Accounts receivable, net of allowance of $ 441 and $ 603 , respectively 340,087 298,648 Other current assets 121,759 104,023 Total current assets 1,322,701 1,271,311 Property and equipment, net of accumulated depreciation and amortization of $ 295,794 and $ 249,223 , respectively 172,112 194,525 Goodwill 2,319,732 2,342,612 Intangible assets, net of accumulated amortization of $ 132,338 and $ 121,489 , respectively 241,226 305,746 Deferred income taxes 242,610 259,803 Other non-current assets 127,456 133,889 TOTAL ASSETS $ 4,425,837 $ 4,507,886 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Accounts payable $ 27,351 $ 13,187 Deferred revenue 181,411 211,282 Accrued expenses and other current liabilities 321,526 307,299 Total current liabilities 530,288 531,768 Long-term debt, net 3,847,272 3,842,242 Income taxes payable 30,744 24,860 Deferred income taxes 13,405 26,302 Other long-term liabilities 92,632 101,787 Commitments and contingencies SHAREHOLDERS' EQUITY Common stock; $ 0.001 par value; authorized 1,600,000,000 shares; 293,796,353 and 289,631,352 shares issued; and 253,956,092 and 268,890,470 outstanding at September 30, 2024 and December 31, 2023, respectively 294 290 Additional paid-in capital 8,729,833 8,529,200 Retained deficit ( 6,738,049 ) ( 7,131,029 ) Accumulated other comprehensive loss ( 407,534 ) ( 385,471 ) Treasury stock; 39,840,261 and 20,740,882 shares, respectively ( 1,673,070 ) ( 1,032,538 ) Total Match Group, Inc. shareholders' equity ( 88,526 ) ( 19,548 ) Noncontrolling interests 22 475 Total shareholders' equity ( 88,504 ) ( 19,073 ) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,425,837 $ 4,507,886 The accom

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. 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 with the consolidated statements and notes thereto included in the Company's Annual Report on Form

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued) 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 nine months ended September 30, 2024, the Company recognized $ 202.9 million of revenue that was included in the deferred revenue balance as of December 31, 2023. The current deferred revenue balance at September 30, 2024 is $ 181.4 million. At September 30, 2024 and December 31, 2023, there was no non-current portion of deferred revenue. Practical Expedients and Exemptions As permitted under the practical expedient available under ASU No. 2014-09, Revenue from Contracts with Customers, the Company does n

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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Revenue: Direct Revenue $ 879,196 $ 866,800 $ 2,572,628 $ 2,457,374 Indirect Revenue (principally advertising revenue) 16,288 14,800 46,569 40,902 Total Revenue $ 895,484 $ 881,600 $ 2,619,197 $ 2,498,276 Direct Revenue: Tinder $ 503,217 $ 508,521 $ 1,464,649 $ 1,424,413 Hinge 145,425 107,265 402,747 280,349 Match Group Asia (a) 72,164 76,765 217,307 229,031 Evergreen & Emerging (b) 158,390 174,249 487,925 523,581 Total Direct Revenue $ 879,196 $ 866,800 $ 2,572,628 $ 2,457,374 ______________________ (a) Primarily consists of the brands Pairs and Azar. (b) Primarily consists 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 public entities to disclose 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. 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 impact only our disclosures with no impacts to our results o

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued) 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, and 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 September 30, 2024 and 2023, the Company recorded an income tax provision of $ 41.2 million and $ 47.3 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company recorded an income tax provision of $ 113.5 million and $ 130.1 million, respectively. The effective tax rates for both t

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