Match Group Revenue Dips as Payer Base Shrinks
The dating app operator reported total revenue of $853 million for the second quarter.
Match Group (MTCH), the dating app operator, reported a 1% year-over-year decrease in total revenue to $853 million for the second quarter. The result marked a reversal from the first quarter, when revenue rose 4% year-over-year to $864 million.
The company saw a continued contraction in its user base. Payers declined 6% year-over-year to 13.3 million, an acceleration of the 5% decline reported in the previous quarter.
Revenue per payer rose 6% year-over-year to $21.13. This growth slowed from the 10% increase to $20.90 reported in the first quarter.
Performance varied across the company's portfolio. Hinge revenue grew 22% year-over-year, though this was a deceleration from the 28% growth reported in the first quarter. Hinge global monthly active users increased 13% year-over-year. At Tinder, year-over-year daily active user declines narrowed to 4%, the best result in 10 quarters.
Adjusted EBITDA margin compressed to 39% from 40% in the first quarter, though it increased 14% year-over-year compared to the second quarter of 2024. Net income margin expanded to 20% from 15% in the prior-year period, despite a slight decrease from 19% in the first quarter.
Match Group projects third-quarter revenue between $885 million and $895 million, which represents a 2% to 3% year-over-year decrease. The company expects third-quarter adjusted EBITDA to be between $330 million and $335 million, a 10% increase year-over-year at the midpoint.
The company used $424 million of cash in June 2024 to repay 0.875% exchangeable senior notes due 2024 at maturity. Diluted shares outstanding decreased by 5%, or 12 million shares, since July 31, 2024, to 237 million as of July 31, 2024.