Match Group, Inc. (NASDAQ:MTCH) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 08:30 am ET

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Match Group, Inc. (NASDAQ:MTCH) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Match Group Third Quarter 2019 Earnings Conference Call.

[Operator Instructions].

I would now like to turn the conference over to Lance Barton, Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

Executive
Lance Barton

Thanks, operator. Today's call will be led by CEO, Mandy Ginsberg, and CFO, Gary Swidler. They will review the third quarter investor presentation that's available on our website and then answer questions.

Before we start, I'd like to remind everyone that, during this call, we may discuss our outlook and future performance. These forward-looking statements may be preceded by words such as we expect, we believe, we anticipate or similar statements. These statements are subject to risks and uncertainty, and our actual results could differ materially from the views expressed today.

Some of these risks have been set forth in our earnings release and our periodic reports filed with the SEC. Now, over to you, Mandy.

Executive
Mandy Ginsberg

Thanks, Lance. And good morning, everyone. Welcome to our 2019 third quarter earnings call. Our growth accelerated in Q3, which is our strongest quarter yet, but it's already been an extremely successful year. Not only has the team driven phenomenal results, we have the scale, margin profile and diversity of brands to deliver record results, while at the same time making new bets and investments that we believe will drive strong and consistent growth in the future.

Before I take you through some of these growth initiatives, I want to briefly touch upon IAC's proposal to fully separate Match Group from IAC. As you know, our Board has formed a special committee of independent directors to evaluate IAC's proposal. A summary of that proposal and the expected process going forward were outlined in a 13D filed last month on October 11.

Unfortunately, there's not really much we can say until the committee has agreed with IAC on the structure that they are ready to recommend to the disinterested shareholders of Match Group. So, in this call, we can't really comment on the transaction. But, of course, we can comment on our great results.

So, with that, let's jump right into the presentation, starting on slide 3. You've heard me say the key objective for Tinder is to deliver an effective, engaging and fun core experience for all of our users on the app. That core experience is a fundamental driver of user retention and engagement, which ultimately leads to better user outcomes, meaning more matches, more dates and more relationships.

In addition, we have focused on monetizing opportunities that will give users tools they find valuable and are willing to pay for because they provide a more efficient and effective experience on Tinder.

Slide 3 illustrates how Tinder's core experience has led to remarkably high and stable user retention over the long run. The last chart shows that we've maintained strong engagement over the last several years. At the same time, we've driven user growth and revenue. 85% of our users who are active on