Q2 2024 Match Group Inc Earnings Call

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Welcome to the match group second quarter 'twenty 'twenty four earnings conference call.

Operator: Welcome to the Match Group second quarter 2024 earnings conference call. All participants will be in listen-only mode.

Operator: Welcome to the Match Group 2nd quarter, 2024, earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signify a conference specialist by pressing the star key followed by zero.

Speaker Change: All participants will be in listen only mode.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keyboard.

Speaker Change: Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star event 1 on your telephone keypad. To withdraw your question, please press star, then 2. Please note this event is being recorded.

Speaker Change: After todays presentation, there will be an opportunity to ask questions.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

Speaker Change: To withdraw your question. Please press Star then two.

Speaker Change: Please note this event is being recorded.

Tanny Shelburne: I would now like to turn the conference over to Tanny Shelburne, Senior Vice President of Investor Relations. Please go ahead.

Operator: To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Tanny Shelburne, Senior Vice President of Investor Relations. Please go ahead.

Speaker Change: I would now like to turn the conference over to Penny Shelburne Senior Vice President of Investor Relations. Please go ahead.

Tanny Shelburne: Thank you, operator, and good morning, everyone.

Tanny Shelburne: Thank you operator, and good morning, everyone. Today's call will be led by CEO, Bernard can and President and CFO, Gary split Park they'll make a few brief remarks, and then we'll open it up for questions before.

Tanny Shelburne: Thank you, Operator, and good morning, everyone. Today's call will be led by CEO Bernard Kim and President and CFO Gary Swidler. They'll make a few brief remarks, and then we'll open it up for questions. Before we start, I need 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.

Tanny Shelburne: Today's call will be led by CEO Bernard Kim and President and CFO Gary Swidler. They'll make a few brief remarks, and then we'll open it up for questions.

Tanny Shelburne: Before we start, I need 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 risk and uncertainties, 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 with the SEC.

Speaker Change: Before we start I need 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 uncertainties and our actual results could differ materially from the.

Tanny Shelburne: These statements are subject to risk and uncertainties, 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 with the SEC. With that, I'd like to turn the call over to BK.

Speaker Change: Use expressed today some of these risks have been set forth in our earnings release, and our periodic reports with the FCC.

Bernard Kim: With that, I'd like to turn the call over to BK. Thank you, Tanny. Good morning, and thank you all for joining today's call. Overall, we are pleased with our Q2 results and the progress we have made across our portfolio. Over my two years, it feels like currents are finally flowing with us, and we have key elements working in our favor across the company. This is the beginning of a broader transformation as Tinder continues to show stabilization. Hinge is a rocket ship expanding rapidly. Azar continues to perform strongly, and marketing at pairs has driven user strength, and we're executing on a number of great initiatives throughout the entire company.

With that I'd like to turn the call over to BK.

Bernard Kim: Thank you, Tanny. Good morning, and thank you all for joining today's call. Overall, we are pleased with our Q2 results and the progress we have made across our portfolio. After two years, it feels like currents are finally flowing with us, and we have key elements working in our favor across the company. This is the beginning of a broader transformation as Tinder continues to show stabilization, Hinge is a rocket ship expanding rapidly, Azar continues to perform strongly, and marketing at Pairs has driven user strength, and we're executing on a number of great initiatives throughout the entire company. Over the last several quarters, Tinder has been working hard to improve the user experience, and we're now starting to see initial signs of progress.

BK: Thank you Patty good morning, and thank you all for joining today's call.

Overall, we are pleased with our Q2 results and the progress we have made across our portfolio.

BK: Over my two years it feels like currents are finally, falling with us and we have key elements working in our favor across the company.

BK: This is the beginning of a broader transformation as Tinder continues to show stabilization hinges a rocket ship expanding rapidly.

BK: <unk> continues to perform strongly and marketing at pairs has driven user strength.

BK: And we're executing on a number of Wade initiatives throughout the entire company.

Bernard Kim: Over the last several corridors, Tinder has been working hard to improve the user experience, and we're now starting to see initial signs of progress. User and pair trends are stabilizing, and we expect them to continue to improve from here. We expect strong sequential pair growth in Q3 and better year-over-year mount trends in the second half of the year. As the largest dating app in the world, it's Tinder's job to deliver for its users, which in turn helps attract new users. Tinder is building on its fun legacy and its iconic swipe experience by continuing to increase authenticity and realness and by setting the industry standard for trust and safety.

BK: Over the last several quarters Tinder has been working hard to improve the user experience and we're now starting to see initial signs of progress.

Bernard Kim: User and payer trends are stabilizing, and we expect them to continue to improve from here. We expect strong sequential payer growth in Q3 and better year-over-year Mao trends in the second half of the year. As the largest dating app in the world, it's Tinder's job to deliver for its users, which in turn helps attract new users.

BK: User and payer trends are stabilizing and we expect them to continue to improve from here.

BK: We expect strong sequential payer growth in Q3 and better year over year MAU trends in the second half of the year.

BK: As the largest dating app in the world, it's tenders job to deliver for its users, which in turn helps attract new users.

Bernard Kim: Tinder is building on its fun legacy and its iconic swipe experience by continuing to increase authenticity and realness and by setting the industry standard for trust and safety. We believe this will address some of the concerns that users have been vocal about more recently. Over the next 12 months, Tinder intends to integrate AI more deeply to make the dating journey simpler and more effective, such that we expect daters to look at Tinder and see an exciting, innovative, and fresh experience. Tinder is already making strides as it works to achieve this vision. They've been working tirelessly to clean up its ecosystem.

Speaker Change: Tinder is building on its fun legacy and its iconic swipe experience by continuing to increase authenticity and realness and by setting the industry standard for trust and safety.

Bernard Kim: We believe this will address some of the concerns that users have been vocal about more recently. Over the next 12 months, Tinder intends to integrate AI more deeply to make the dating journey simpler and more effective, such that we expect to look at Tinder and see an exciting, innovative, and fresh experience. Tinder is already making strides as it works to achieve this vision. They've been working tirelessly to clean up its ecosystem; enhanced tools are being tested to increase authenticity, with more to come in Q3, and AI-driven tools like photo selector are being deployed to make Tinder experience easier and more effective.

Speaker Change: We believe this will address some of the concerns that users have been vocal about more recently.

Speaker Change: Over the next 12 months Tinder intends to integrate AI more deeply to make the dating journey simpler and more effective such that we expect theaters to look at tinder and see an exciting innovative and fresh experience.

Speaker Change: Tinder is already making strides as it works to achieve this vision.

Speaker Change: They've been working tirelessly to clean up its ecosystem enhanced tools are being tested to increase authenticity with more to come in Q3, and AI driven tools like photos select or are being deployed to make the tinder experience easier and more effective.

Bernard Kim: Enhanced tools are being tested to increase authenticity, with more to come in Q3. And AI-driven tools like Photo Selector are being deployed to make the Tinder experience easier and more effective. Next year, I expect an even bolder evolution of the product to vastly improve its core matching experience. You've heard a constant theme of innovation from us, and it's happening. But keep in mind, when you have a two plus billion dollar revenue business and nearly 50 million MAU globally, all interacting in a connected and delicate ecosystem, innovation requires some pretty elite-level gymnastics. This effort requires a willingness to reimagine the core while building off of what already makes Tinder, Tinder. It's what we began doing with the major ecosystem cleanup initiated mid last year.

Bernard Kim: Next year, I expect an even bolder evolution of product to vastly improve its core matching experience. You've heard a constant theme of innovation from us, and it's happening. But keep in mind, when you have a $2 plus billion revenue business and nearly 50 million MAU globally, all interacting in a connected and delicate ecosystem, innovation requires some pretty elite level gymnastics. This effort requires a willingness to reimagine the core while building off of what already makes Tinder. It's what we began doing with the major ecosystem cleanup initiated mid-last year, and while the results weren't entirely predictable and certainly not linear, we believe they are paying off.

Speaker Change: Next year, I expect an even bolder evolution of product to vastly improve its core matching experience.

Speaker Change: You've heard a constant theme of innovation from us and it's happening, but keep in mind. When you have a two plus billion dollar revenue business and nearly 50 million miu globally, all interacting in a connected and delicate ecosystem innovation requires some pretty elite level.

Speaker Change: <unk>.

Speaker Change: This effort requires a willingness to re imagine the core while building off of what already makes tinder tinder.

Speaker Change: It's what we began doing with the major ecosystem cleanup initiated mid last year and while the results weren't entirely predictable and certainly not linear we believe they are paying off.

Bernard Kim: And while the results weren't entirely predictable and certainly not linear, we believe they are paying off. We expect Tinder's initiatives to be iterative and continue to build off one another and to be coupled with continued strong marketing. There is even more to come in the second half of this year and into 2025, and I'm excited to share further progress with you at our Investor Day. Hinge continues to show remarkable performance, growing direct revenue nearly 50% year-over-year in Q2. It continues to rapidly grow its share of downloads in most of its markets.

Bernard Kim: We expect Tinder's initiatives to be iterative and continue to build off one another and to be coupled with continued strong marketing.

Speaker Change: We expect tenders initiatives to be iterative and continue to build off one another and to be coupled with continued strong marketing.

Bernard Kim: There is even more to come in the second half of this year and into 2025, and I'm excited to share further progress with you at our Investor Day. Tinge continues to show remarkable performance, growing direct revenue nearly 50% year-over-year in Q2. It continues to rapidly grow its share of downloads in most of its markets. New product features like your turn limits are driving higher-quality conversations. Its AI-enable top photo and photo finder are making the user journey meaningfully better, and users are getting out on great dates even faster. Tinge's new marketing campaigns are also resonating, driving new user growth, and getting incredibly positive press coverage.

Speaker Change: There is even more to come in the second half of this year and into 'twenty 'twenty five and I'm excited to share further progress with you at our Investor day.

Speaker Change: Hinge continues to show remarkable performance growing direct revenue nearly 50% year over year in Q2.

Speaker Change: It continues to rapidly grow its share of downloads in most of its markets.

Bernard Kim: New product features like Your Turn Limits are driving higher-quality conversations. Its AI-enabled Top Photo and Photo Finder are making the user journey meaningfully better, and users are getting out on great dates even faster. Hinge's new marketing campaigns are also responding, driving new user growth and getting incredibly positive press coverage. We expect that over the coming quarters, Match Group will own both the leading dating app in the world with durable growth and the fastest growing at-scale dating app for intentioned daters, as well as a host of growing brands behind them.

Speaker Change: New product features like your term limits are driving higher quality conversations, it's AI enabled top photo and photo finder or making the user journey meaningfully better and users are getting out on great dates even faster hinges.

Speaker Change: Hinges, new marketing campaigns are also resonating driving new user growth and getting incredibly positive press coverage.

Bernard Kim: We expect that over the coming quarters, Match Group alone both the leading dating app in the world with durable growth, and the fastest growing at-scale dating app for intention daters, as well as a host of growing brands behind them. We're also nurturing other growth brands across the portfolio. Azar's user growth and financial momentum are strong, driven by cutting-edge AI product innovation and a successful expansion into Europe. We also continue to add demographically focused emerging brands to our portfolio. We see clear opportunities to build new social experiences and leverage the latest in technology. Our unyielding commitment to trust and safety, along with our utilization of AI in a safe and responsible way, will clearly benefit users across our entire portfolio.

Speaker Change: We expect that over the coming quarters match group will own both the leading dating app in the world with durable growth and the fastest growing at scale dating app for intention daters as well as a host of growing brands behind them.

Bernard Kim: We're also nurturing other growth brands across the portfolio. Azar's user growth and financial momentum are strong, driven by cutting-edge AI product innovation and a successful expansion into Europe. We also continue to add demographically focused emerging brands to our portfolio. We seek clear opportunities to build new social experiences and leverage the latest in technology. Our unyielding commitment to trust and safety, along with our use of AI in a safe and responsible way, will clearly benefit users across our entire portfolio.

Speaker Change: We're also nurturing other growth brands across the portfolio.

Speaker Change: Czars user growth and financial momentum, our strong driven by cutting edge AI product innovation and our successful expansion into Europe.

Speaker Change: We also continue to add demographically focused emerging brands to our portfolio, we see clear opportunities to build new social experiences and leverage the latest in technology.

Speaker Change: Our unyielding commitment to trust and safety, along with our utilization of AI in a safe and responsible way will clearly benefit users across our entire portfolio.

Bernard Kim: In other areas of our business, we're refocusing our efforts to play to our strengths. We've decided to exit live streaming services in our dating apps, and Sunset HyperConnect's Hakuna app, which provides live streaming services primarily in Korea and Japan. While live streaming services brought some benefits to our portfolio and users, a couple of things have changed since we undertook these businesses, which have made them less beneficial. Since the pandemic, with people sitting on Zooms all day, the novelty of live streaming video has declined. Additionally, these businesses require significant further investment, and their financial profiles are below what we ultimately like our brands to achieve.

Speaker Change: In other areas of our business, we're refocusing our efforts to play to our strengths, we've decided to exit live streaming services in our dating apps and Sunset Hyperconnected Accoona App, which provides live streaming services, primarily in Korea and Japan.

Bernard Kim: In other areas of our business, we're refocusing our efforts to play to our strengths. For example, we've decided to exit live streaming services in our dating apps and Sunset HyperConnect's Hakuna app, which provides live streaming services primarily in Korea and Japan. While live streaming services brought some benefits to our portfolio and users, a couple things have changed since we undertook these businesses, which have made them less beneficial. Since the pandemic with people sitting on their zooms all day, the novelty of live streaming video has declined.

Bernard Kim: Additionally, these businesses require significant further investment, and their financial profiles are below what we would ultimately like our brands to achieve. We expect exiting live streaming, along with other initiatives across the portfolio, will result in a workforce reduction of approximately 6% globally, which we expect to result in an incremental annual cost savings of approximately $13 million, which is in addition to our previously disclosed cost-saving expectations from our tech re-platforming efforts. It is important to reiterate the value that HyperConnect has brought to Match Group, including a strongly growing asset in Azar and world-class AI expertise.

Speaker Change: While live streaming services brought some benefits to our portfolio and users a couple of things have changed since we undertook these businesses, which have made them less beneficial.

Speaker Change: Since the pandemic with people sitting on zooms all day, the novelty of live streaming video has declined.

Speaker Change: Additionally, these businesses require significant further investment and their financial profiles are below where we'd ultimately like our brands to achieve.

Bernard Kim: We expect exiting live streaming, along with other initiatives across the portfolio, will result in a workforce reduction of approximately 6 percent globally, which we expect to result in incremental annual cost savings of approximately $13 million, which is in addition to our previously disclosed cost saving expectations from our tech re-platforming efforts. It is important to reiterate the value that HyperConnect has brought to this group, including a strongly growing asset in a czar and world-class AI expertise. The HyperConnect team has been integral in creating several of the AI-enabled features that have been introduced across our brands, including Tinder's photo selector and Hinge's top photo and photo finder.

Speaker Change: We expect exiting live streaming along with other initiatives across the portfolio will result in a workforce reduction of approximately 6% globally.

Speaker Change: Which we expect to result in incremental annual cost savings of approximately $13 million.

Speaker Change: Which is in addition to our previously disclosed cost saving expectations from our tech re platforming efforts.

Speaker Change: It is important to reiterate the value that hyperkinetic has brought to match group, including a strongly growing asset and Azhar and world class AI expertise.

Bernard Kim: The HyperConnect team has been integral in creating several of the AI-enabled features that have been introduced across our brands, including Tinder's Photo Selector and Hinge's Top Photo and Photo Finder. This is just one example of how we're leveraging common technologies across our portfolio but tailoring them to each specific brand. With this in mind, we plan to redeploy some of our retained HyperConnect talent to Azar, Tinder, and Hinge, especially given the significant opportunity that we see to further embed AI-driven capabilities into our brands. We recognize that shareholders rightfully expect both near and long-term results. We not only embrace that challenge, but we think it's exactly how innovation should happen.

Speaker Change: The hyperkinetic team has been integral in creating several of the AI enabled features that have been introduced across our brands, including tenders photo selector and hinges top photo and photo finder.

Bernard Kim: This is just one example of how we're leveraging common technologies across our portfolio but tailoring them to each specific brand. With this in mind, we plan to redeploy some of our retained HyperConnect talent to a Czar, Tinder, and Hinge, especially given the significant opportunity that we see to further embed AI-driven capabilities into our brands. We recognize that shareholders rightfully expect both near and long-term results. We not only embrace that challenge, but we think it's exactly how innovation should occur. A Tinder innovation in a large-scale ecosystem makes it difficult to predict exactly which features will succeed and when, but the market opportunity is there, the vision is clear, and the team is executing.

Speaker Change: This is just one example of how we're leveraging common technologies across our portfolio, but tailoring them to each specific brand.

Speaker Change: With this in mind, we plan to redeploy some of our retained Hyperconnected Allen to Azhar, Tinder and hinge, especially given the significant opportunity that we see to further embed AI driven capabilities into our brands.

Speaker Change: We recognize that shareholders rightfully expect both near and long term results.

Speaker Change: We not only embraced that challenge, but we think as exactly how innovation should occur.

Bernard Kim: At Tinder, innovation in a large-scale ecosystem makes it difficult to predict exactly which features will succeed and when. But the market opportunity is there, the vision is clear, and the team is executing. Hinge's momentum is undeniable, and it's on its path to become a $1 billion revenue business. And we're being financially disciplined in undertaking all this product innovation, which we expect will result in sustained user growth. Moreover, where we don't see a clear path to growth, we're cutting back on costs, as is the case with our Evergreen brand. We understand that if we can't deliver a return to solid, sustainable growth, other choices will need to be considered. We think the doomsday scenarios around dating apps are way overblown.

Speaker Change: At Tinder innovation in a large scale ecosystem makes it difficult to predict exactly which features will succeed and win but the market opportunity is there. The vision is clear and the team is executing.

Bernard Kim: Hinge's momentum is undeniable and is on its path to become a $1 billion revenue business. And we're being financially disciplined in undertaking all this product innovation, which we expect will result in sustained user growth. Moreover, where we don't see as clear a path to growth, we're cutting back on cost, as is the case with our evergreen brands. We understand that if we can't deliver a return to solid, sustainable growth, other choices will need to be considered. We think that June's day scenarios around dating apps are way overblown, and you can start to see that in our results this quarter.

Speaker Change: Hinges momentum is undeniable and it's on its path to become a 1 billion dollar revenue business.

Speaker Change: And we're being financially disciplined and undertaking all this product innovation, which we expect will result in sustained user growth.

Speaker Change: Moreover, where we don't see as clear a path to growth we're cutting back on costs as is the case with our evergreen brands.

Speaker Change: We understand that if we can't deliver a return to solid sustainable growth other choices will need to be considered.

Speaker Change: We think the doomsday scenarios around dating apps are way overblown and you can start to see that in our results this quarter.

Bernard Kim: And you can start to see that in our results this quarter. We have product work to do, but once we do that, we are confident that the growth potential for our business is significant. Dating apps are still the best way for people to meet, and we intend to continue to capture that opportunity.

Bernard Kim: We have product work to do, but once we do that, we are confident that the growth potential for our business is significant. Dating apps are still the best way for people to meet, and we intend to continue to capture that opportunity. We welcome shareholder input, and we remain committed to the delivery of increased shareholder value. We expect demonstrable progress quarter to quarter in our innovation and product development. We believe return of capital can be a nice component of shareholder return, given the highly profitable and cash flow generated nature of our business. And we've been buying back our stock aggressively, because we believe it represents a terrific long-term investment.

Speaker Change: We have product work to do but once we do that we are confident that the growth potential for our business is significant.

Speaker Change: Dating apps are still the best way for people to meet and we intend to continue to capture that opportunity.

Speaker Change: We welcome shareholder input and we remain committed to the delivery of increased shareholder value.

Bernard Kim: We welcome shareholder input, and we remain committed to the delivery of increased shareholder value. We expect demonstrable progress quarter over quarter in our innovation and product development. We believe return of capital can be a nice component of shareholder return, given the highly profitable and cash flow-generative nature of our business.

Speaker Change: We expect demonstrable progress quarter over quarter, and our innovation and product development efforts.

Speaker Change: We believe return of capital can be a nice component of shareholder return given the highly profitable and cash flow generative nature of our business.

Speaker Change: And we've been buying back our stock aggressively because we believe it represents a terrific long term investment.

Bernard Kim: We look forward to sharing a deeper dive in our first ever Investor Day in December, where I'm excited to showcase the management team behind these incredible apps.

Speaker Change: We look forward to sharing a deeper dive in our first ever Investor day in December where I'm excited to showcase the management team behind these incredible apps.

Gary Swidler: With that, I will hand it over to Gary. Thanks, BK, and good morning everyone. Thank you for joining us today. We exceeded our expectations in Q2 on both the top and bottom line, despite some unexpected headwinds. Match Group's total revenue was $864 million, up 4% year over year, while our FX neutral total revenue was $892 million, up 8% year over year. We experienced $6 million more in FX headwinds than we anticipated at the time of our last earnings call. In the quarter, revenue per payer grew 9% while payers declined 5% year over year. Tinder delivered $480 million of direct revenue, up 1% year over year, up 4% FX neutral.

Bernard Kim: And we've been buying back our stock aggressively because we believe it represents a terrific long-term investment. We look forward to sharing a deeper dive at our first ever Investor Day in December, where I'm excited to showcase the management team behind these incredible, With that, I will hand it over to Gary. Thanks, BK, and good morning, everyone.

Speaker Change: With that I will hand, it over to Gary.

Gary: Thanks P J and good morning, everyone. Thank you for joining us today.

Gary Swidler: Thank you for joining us. We exceeded our expectations in Q2 on both the top and bottom line, despite some unexpected headwinds. Match Group's total revenue was $864 million, up 4% year-over-year, while our FX Neutral total revenue was $892 million, up 8% year-over-year. We experienced $6 million more in FX headwinds than we anticipated at the time of our last earnings call.

Gary: We exceeded our expectations in Q2 on both the top and bottom line. Despite some unexpected headwinds.

Gary: Match group's total revenue was $864 million up 4% year over year, while our FX neutral total revenue was $892 million up 8% year over year.

Gary: We experienced $6 million more in FX headwinds than we anticipated at the time of our last earnings call.

Speaker Change: In the quarter revenue per payer grew 9%, while payors declined 5% year over year.

Gary Swidler: In the quarter, revenue per payer grew 9% while payers declined 5% year over year. Tinder delivered $480 million of direct revenue, up 1% year-over-year, up 4% from FX neutrality. Tinder payers declined 8% year-over-year to approximately 9.6 million, an improvement from the 9% year-over-year decline last quarter and above our expectations. Payers were down $78,000 in sequential.

Speaker Change: Tinder delivered $480 million of direct revenue up 1% year over year up 4% FX neutral.

Gary Swidler: Tinder payers declined 8% year over year to approximately $9.6 million, an improvement from the 9% year over year to climb last quarter and above our expectations. Payers were down 78,000 sequentially. Tinder's Q2 RPP increased 10% year over year. While growth in subscription revenue at Tinder was solid at 7% year over year in Q2, Tinder continued to experience pressure on Alachart revenue, which was down 17% year over year in the quarter. Tinder is rolling out various initiatives to address the ALC weakness, including unbundling current features such as Passport and See Who Likes You into ALC to attract users who may not be as open to subscriptions.

Speaker Change: Tinder Payors declined 8% year over year to approximately $9 6 million an improvement from the 9% year over year decline last quarter and above our expectations payers.

Speaker Change: Payers were down 78000 sequentially.

Gary Swidler: Tinder's Q2 RPP increased 10% year over year, and growth in subscription revenue at Tinder was solid at 7% year over year in Q2. Tinder continued to experience pressure on a la carte revenue, which was down 17% year over year in the quarter. Tinder is rolling out various initiatives to address the ALC weakness, including unbundling current features such as Passport and See Who Likes You into ALC to attract users who may not be as open to subscriptions. Both are in my test now.

Speaker Change: Tinder Q2, our P P increased 10% year over year.

Speaker Change: While growth in subscription revenue at Tinder was solid at 7% year over year in Q2.

Speaker Change: Tinder continued to experience pressure on Ala Carte revenue, which was down 17% year over year in the quarter.

Speaker Change: Tinder is rolling out various initiatives to address the ALC weakness, including unbundling current features such as passport and see who likes you into ALC to attract users who may not be as open to subscriptions. Both are in test now.

Gary Swidler: Both are in test now. Additionally, the team will shortly be testing two new ALC features: one that contextualizes someone's likes and another that helps foster ongoing engagement after matching. As a result, we're optimistic that Q2 will be a trough for declines in year-over-year ALC revenue, and that trends will gradually improve in the second half of the year. Hinge direct revenue was $134 million, up 48% year over year in Q2. Hinge payers were up 24% year over year to nearly 1.5 million, while RPP of $30 was up 19% year over year.

Gary Swidler: Additionally, the team will shortly be testing two new ALC features, one that contextualizes someone's likes and another that helps foster ongoing engagement after matches. As a result, we're optimistic that Q2 will be a trough for declines in year-over-year ALC revenue and that trends will gradually improve in the second half of the year. Hinge Direct revenue was $134 million, up 48% year-over-year in Q2. Hinge payers were up 24% year-over-year to nearly $1.5 million, while RPP of $30 was up 19% year-over-year. MG Asia's direct revenue declined 4% to $74 million, up 9% on an FX-neutral basis.

Speaker Change: Additionally, the team will shortly be testing two new ALC features one that contextualize it someone's legs and another that helps foster ongoing engagement after matching.

Speaker Change: As a result, we are optimistic that Q2 will be a trough for declines in year over year, ALC revenue and the trends will gradually improve in the second half of the year.

Speaker Change: His direct revenue was $134 million up 48% year over year in Q2.

Speaker Change: Hinge payers were up 24% year over year to nearly 1.5 million, while our P. P of $30 was up 19% year over year.

Gary Swidler: New Year, M.G. Asia's direct revenue declined 4% to $74 million, up 9% on an FX neutral basis. A Zara direct revenue declined 1% in the quarter, but was up 14% year-over-year FX neutral, despite still not being able to access the Saudi market, as its European expansion continued to contribute to results. Pairs direct revenue fell 10% in the quarter, but was up 2% year-over-year FX neutral. Evergreen and Emerging Brands direct revenue was $161 million, a decline of 8% year-over-year driven by the Evergreen Brands, which declined 13% year-over-year, while the Emerging Brands collectively grew direct revenue 17% year-over-year in Q2.

Speaker Change: M G Asia direct revenue declined 4% to $74 million up 9% on an FX neutral basis.

Gary Swidler: Azzar's direct revenue declined 1% in the quarter, but it was up 14% year-over-year FX neutral, despite still not being able to access the Saudi market, as its European expansion continued to contribute to results. Payer's direct revenue fell 10% in the quarter, but it was up 2% year-over-year FX neutral. Evergreen and Emerging Brands direct revenue was $161 million, a decline of 8% year over year, driven by the Evergreen Brands, which declined 13% year over year, while the Emerging Brands collectively grew direct revenue 17% year over year in Q2.

Gary Swidler: Focusing on user trends, we saw sequential stability in Tinder's MAU, which were down 9% year-over-year in Q2, as was the case in Q1. Mao at Tinder have now been relatively stable since March. A large decline in Mao began in July of last year, driven in large part by changes we made to Tinder's trust and safety policies to remove people who were not truly on the app to connect. That has now begun to stabilize. With much of this impact now behind us, and given Tinder's various ongoing product and marketing initiatives, we're confident Tinder's year-over-year MAU declines should continue to moderate as this year progresses.

Gary Swidler: Focusing on user trends, we saw sequential stability in Tinder's Mao, which were down 9% year over year in Q2, as was the case in Q1. Now, Tinder users have now been relatively stable since March. A large decline in Mao began in July of last year, driven in large part by changes we made to Tinder's trust and safety policies to remove people who were not truly on the app to connect. That has now begun to stabilize.

Speaker Change: With much of this impact now behind us and given tenders various ongoing product and marketing initiatives, we're confident tenders year over year MAU declines should continue to moderate as this year progresses.

Gary Swidler: With much of this impact now behind us, and given Tinder's various ongoing product and marketing initiatives, we're confident Tinder's year-over-year Mao declines should continue to moderate as this year progresses. Hinge's user growth continues to be very strong across its key markets, with 14% year-over-year download growth and 21% year-over-year mail growth in Q2. The app gained significant share in Q2, ranking as the number two dating app across its collective English-speaking markets in May and June, including number one in the UK, Australia, Ireland, and Canada and number three in the U.S.

Gary Swidler: Hinge's user growth continues to be very strong across its key markets. With 14% year-over-year download growth and 21% year-over-year MAU growth in Q2. The app gained significant share in Q2, ranking as the number 2 dating app across its collective English-speaking markets in May and June, including number 1 in the UK, Australia, Ireland, Canada, and number 3 in the US. In its European expansion markets in aggregate, Hinge ranked number 2 by downloads in June and jumped up the charts in most of the key country-slash regions, including France and Germany. Switching to profitability, Match Group Q2 AOI was $306 million, up 2% year-over-year for a margin of 35%.

Speaker Change: Hinge is user growth continues to be very strong across its key markets with 14% year over year download growth and 21% year over year MAU growth in Q2.

Speaker Change: The App gained significant share in Q2 ranking as the number two dating app across its collective English speaking markets in May and June including number one in the U K, Australia, Ireland, Canada and number three in the U S.

Speaker Change: And its European expansion markets in aggregate hinge ranked number two by downloads in June and jumped up the charts and most of the key countries slash regions, including France and Germany.

Gary Swidler: In its European expansion markets in aggregate, Hinge ranked number two by downloads in June and jumped up the charts in most of the key countries slash regions, including France and Germany. Switching to profitability, Match Group Q2 AOI was $306 million, up 2% year-over-year for a margin of 35%. Operating income was $205 million in Q2, down 5% year-over-year for a margin of 24%.

Speaker Change: Switching to profitability match group Q2 was $306 million up 2% year over year for margin of 35%.

Gary Swidler: Operating income was $205 million in Q2, down 5% year-over-year for a margin of 24%. Q2, Match Group AOI and OI each benefited from the increase in revenue as a result of growth at Hinge and other brands and lower cost of revenue, partially upset by higher selling and marketing expenses, higher G&A expenses, which was primarily due to the new Canada Digital Services Tax, and higher product development costs, which was primarily due to increase headcount in product at Tinder. The increase in selling and marketing spend was primarily at Hinge, Tinder, and certain emerging brands, partially offset by declines in marketing spend at other brands in our portfolio.

Speaker Change: Operating income was $205 million in Q2 down 5% year over year for margin of 24%.

Speaker Change: Q2 match group and Oi each benefited from the increase in revenue as a result of growth at hinge and other brands and lower cost of revenue, partially offset by higher selling and marketing expenses higher G&A expenses, which was primarily due to the new candidate digital services tax.

Gary Swidler: U2, Match Group, AOI, and OI each benefited from the increase in revenue as a result of growth at Hinge and other brands and lower cost of revenue. However, partially upset by higher selling and marketing expenses, higher G&A expenses, which was primarily due to the new Canada Digital Services Tax, and higher product development costs, which was primarily due to increased headcount in product at Tinder. The increase in selling and marketing spend was primarily at Hinge, Tinder, and certain emerging brands, partially offset by declines in marketing spend at other brands in our portfolio.

Speaker Change: And higher product development costs, which was primarily due to increased head count in product at Tinder.

Speaker Change: The increase in selling and marketing spend was primarily at hinge and tinder in certain emerging brands, partially offset by declines in marketing spend at other brands in our portfolio.

Gary Swidler: Operating income was further impacted by increased SPC expense due to higher headcount and lower forpertures of equity awards in 2024 than in 2020. 3, and higher depreciation expense due to increases in internally developed software place and service, including at Tinder and HyperConnect. In Q2, we purchased 6.4 million of our shares at an average price of approximately $31 per share on a trade date basis for a total of $197 million. Year to date, we have deployed just slightly more than 100% of our free cash flow for repurchases, well above our latest commitment to deploy more than 75% of our free cash flow for buybacks.

Speaker Change: Operating income was further impacted by increased SBC expense due to higher head count and lower Forfeitures of equity Awards. In 2024, then in 2023 and higher depreciation expense due to increases in internally developed software placed in service, including at Tinder and hyper connect.

Gary Swidler: Operating income was further impacted by increased SBC expense due to higher headcount and lower forfeitures of equity awards in 2024 than in 2023, and higher depreciation expense due to increases in internally developed software placed in service, including at Tinder and HyperConnect. In Q2, we repurchased 6.4 million of our shares at an average price of approximately $31 per share on a trade date basis, for a total of $197 million.

Speaker Change: In Q2, we repurchased $6 4 million of our shares at an average price of approximately $31 per share on a trade date basis for a total of $197 million.

Gary Swidler: Year-to-date, we have deployed just slightly more than 100% of our free cash flow for repurchase, well above our latest commitment to deploy more than 75% of our free cash flow for buyback. Since we resumed buybacks in May 2022, we have repurchased 35 million shares, or 12% of the then outstanding shares. This would be 28 million shares or 10% net of newly issued shares for employee equity, with our net leverage below our three times target at 2.4 times, and $844 million in cash and cash equivalents and short-term investments.

Speaker Change: Year to date, we have deployed just slightly more than 100% of our free cash flow for repurchases well above our latest commitment to deploy more than 75% of our free cash flow for buybacks.

Gary Swidler: Since we resumed buybacks in May 2022, we have repurchased 35 million shares or 12% of the then outstanding shares. This would be 28 million shares or 10% net of newly issued shares for employee equity plans. With our net leverage below our three times target at 2.4 times and $844 million in cash and cash equivalence and short term investments, we have ample financial flexibility, continuing to return at least 75% of our free cash flow to shareholders for the remainder of the year, which remains our objective. For Q324, we expect total revenue for Match Group of $895 to $905 million, up 2 to 3% year over year, which would be 4 to 5% FX neutral.

Speaker Change: Since we resumed buybacks in May 2022, we have repurchased 35 million shares or 12% of the then outstanding shares. This would be 28 million shares or 10% net of newly issued shares for employee equity plans.

Speaker Change: With our net leverage below our three times target at two four times and $844 million in cash and cash equivalents and short term investments we have ample financial flexibility continue returning at least 75% of our free cash flow to shareholders for the remainder of the year, which remains our objective.

Gary Swidler: We have ample financial flexibility to continue returning at least 75% of our free cash flow to shareholders for the remainder of the year, which remains our objective. For Q3-24, we expect total revenue for Match Group to be $895-905 million, up 2-3% year-over-year, which would be 4-5% FX neutral. This range reflects the lost revenue from our exit of live streaming services, which we estimate will be about $8 million for the quarter. Given we are exiting at mid-quarter, note that FX headwinds for the second half have worsened by about one point since our last earnings. For both Tinder and the whole company, we currently expect FX to be nearly a two-point year-over-year headwind in the back half of the year. We expect direct revenue at Tinder to be $505-510 million in Q3, roughly flat year-over-year and up approximately 2.5% FX-neutral.

Speaker Change: For Q3, 'twenty four we expect total revenue for match group of $895 million to $905 million up 2% to 3% year over year, which would be 4% to 5% FX neutral.

Gary Swidler: This range reflects the lost revenue from our exit of live streaming services, which we estimate will be about $8 million for the quarter, given we are exiting at mid-quarter. Note that FX headwinds for the second half have worsened by about 1 point since our last earnings call. For both Tinder and the whole company, we currently expect FX to be nearly a 2 point year-rear headwind in the back half of the year. We expect direct revenue at Tinder to be $505 to $510 million in Q3, roughly flat year over year and up approximately 2.5% FX neutral.

Speaker Change: This range reflects the lost revenue from our exit of live streaming services, which we estimate will be about $8 million for the quarter. Given we are exiting at mid quarter.

Speaker Change: Note that FX headwinds for the second half have worsened by about one point since our last earnings call.

Speaker Change: We're both tinder and the whole company. We currently expect FX to be nearly a two point year over year headwind in the back half of the year.

Gary Swidler: This range reflects improving year-rear Mao and payer trends and moderating year-rear RPP gains. It also reflects the improvement in year-rear ALC revenue trends I mentioned earlier due to new initiatives in this area. We expect Tinder payers to decline at around 5% year-over-year in Q3, a further improvement from Q2 year-over-year levels, leading to positive sequential payer additions in Q3 of approximately 250,000. We expect continued improvement in year-rear Tinder payers in Q4, though we expect typical seasonality to impact Q4 sequential payer additions. Across our other brands, we expect Q3 direct revenue of $375 to $380 million, up 5% to 6% year-over-year, up 7% to 8% FX neutral.

Gary Swidler: This range reflects improving year-over-year MOU and payer trends and moderating year-over-year RPP gains. It also reflects the improvement in year-over-year ALC revenue trends I mentioned earlier due to new initiatives in this area. We expect Tinder payers to decline at around 5% year over year in Q3, a further improvement from Q2's year-over-year level, leading to positive sequential payer additions in Q3 of approximately $250,000. We expect continued improvement in year-over-year tender payers in Q4, though we expect typical seasonality to impact Q4 sequential payer decisions. Across our other brands, we expect Q3 direct revenue of $375 to $380 million, up 5% to 6% year-over-year, up 7% to 8% FX Neutral.

Gary Swidler: Within our other brands, we expect hints to deliver approximately $145 million of direct revenue in Q3, year-over-year growth of 35%. As his strength continues, but it anniversaries the introduction of several impactful monetization issues in the back half of last year. last year. We expect Match Group AOI of $335-340 million in Q3, up slightly year over year, and a margin of 37.5% at the midpoints of the ranges, which would be stronger than our margins in the first half of the year. We expect overall Q3 marketing spend to be up about 6% year over year, as we continue to roll out the latest Tinder marketing campaign, deploy marketing dollars to support our growth brands, including Hinge, Azar, and some emerging brands, but reduce marketing spend at other brands.

Gary Swidler: Within our other brands, we expect Hinge to deliver approximately $145 million of direct revenue in Q3, year-over-year growth of 35%, as Hinge's strength continues, but it marks the introduction of several impactful monetization initiatives in the back half of last year. We expect Match Group AOI of $335 to $340 million in Q3, up slightly year over year, and a margin of 37.5% at the midpoints of the ranges, which would be stronger than our margins in the first half of. We expect overall Q3 marketing spend to be up about 6% year over year, as we continue to roll out the latest Tinder marketing campaign and deploy marketing dollars to support our growth brands, including Hinge, Az Our AOI range for the quarter reflects approximately $6 million in employee severance and other charges relating to the exit of live streaming, as well as approximately $1 million for Canada's new digital services.

Speaker Change: With <unk> of $335 million to $340 million in Q3.

Speaker Change: Up slightly year over year and margin of 37, 5% at the midpoint of the ranges, which would be stronger than our margins in the first half of the year.

Speaker Change: We expect overall Q3 marketing spend to be up about 6% year over year as we continue to roll out the latest tinder marketing campaign deploy marketing dollars to support our growth brands, including hinge Saar and some emerging brands, but reduced marketing spend at other brands.

Gary Swidler: Our AOI range for the quarter reflects approximately $6 million in employee severance and other charges relating to the exit of live streaming, as well as approximately a million dollars for Canada's new digital services tax. We expect Q3 OI to be impacted by roughly $50 million of impairments of intangibles and other charges related to the exit of our live streaming services. After accounting for the exit of live streaming services, and based on our latest FX expectations, which have worsened by about one point since our last earnings call, we expect Match Group to deliver year-over-year total revenue growth of approximately 5%.

Speaker Change: Our range for the quarter reflects approximately $6 million in employee severance and other charges relating to the exit of live streaming as well as approximately $1 million for Canada's new digital services tax.

Speaker Change: We expect Q3 oi to be impacted by roughly $50 million of impairments of intangibles and other charges related to the exit of our live streaming services.

Gary Swidler: We expect Q3OI to be impacted by roughly $50 million of impairments of intangibles and other charges related to the exit of our live streaming service. After accounting for the exit of live streaming services, and based on our latest FX expectations, which have worsened by about one point since our last earnings call, We expect Match Group to deliver year-over-year total revenue growth of approximately 5%, ups about seven and a half percent year-over-year FX neutral, and Tindr to deliver roughly 3% year-over-year direct revenue growth, up approximately 5.5% year-over-year FX neutral for full year 2015.

Speaker Change: After accounting for the exit of live streaming services and based on our latest FX expectations, which have worsened by about one point since our last earnings call. We expect match group to deliver year over year total revenue growth of approximately 5%.

Gary Swidler: Ups about 7.5% year over year FX neutral, and Tinder to deliver roughly 3% year over year direct revenue growth, up approximately 5.5% year over year FX neutral for full year 24. We calculate that how do we not elected to exit live streaming and FX headwinds not worsened, we would be on pace to deliver a better than 6% total revenue growth for the year. We continue to expect to achieve our full year company AOI margin target of 36%, despite incurring approximately $6 million of severance and other charges related to the exit of our live streaming businesses and $9 million of full year cost related to the Canada Digital Services Tax.

Speaker Change: About seven 5% year over year, FX neutral and tinder to deliver roughly 3% year over year direct revenue growth up approximately five 5% year over year FX neutral for full year 'twenty four.

Gary Swidler: We calculate that had we not elected to exit live streaming and the FX headwinds not worsened, we would be on pace to deliver better than 6% total revenue growth for the year. We continue to expect to achieve our full-year company AOI margin target of 36%, despite incurring approximately $6 million of severance and other charges related to the exit of our live-streaming businesses and $9 million of full-year costs related to the Canada Digital Services Tax, none of which was included in our initial outlook for 2025. I know there is significant focus on our longer-term consolidated AOI margins and free cash flow, so I want to make sure to outline the key considerations in this regard.

Speaker Change: We calculate that had we not elected to exit live streaming and FX headwinds not worsened, we would be on pace to deliver better than 6% total revenue growth for the year.

Speaker Change: We continue to expect to achieve our full year company AOI margin target of 36%, despite incurring approximately $6 million of severance and other charges related to the exit of our live streaming businesses and $9 million of full year cost related to the Canada digital services.

Speaker Change: Tax none of which was included in our initial outlook for 2024.

Gary Swidler: None of which was included in our initial outlook for 2024.

Gary Swidler: I know there is significant focus on our longer term consolidated AOI margins and free cash flow, so I want to make sure to outline the key considerations in this regard. As you heard BK talk about, we think the opportunity for our business remains significant and worth investing in, particularly at Tinder and Hinge. Our goal is to return the company to sustained revenue growth, which requires us to invest in the product experience and in marketing. We are judicious in how we allocate capital and will continue to exercise sound discipline. We believe we're already in the process of making important efficiency moves at our E&E brands and at HyperConnect, which result in margins more consistent with our consolidated levels.

Speaker Change: I know there is significant focus on our longer term consolidated margins and free cash flow. So I want to make sure to outline the key considerations in this regard.

Speaker Change: As you've heard <unk> talk about we think the opportunity for our business remains significant and worth investing in particularly at Tinder and hinge. Our goal is to return the company to sustained revenue growth, which requires us to invest in the product experience and in marketing.

Gary Swidler: As you've heard BK talk about, we think the opportunity for our business remains significant and worth investing in, particularly at Tinder and Hint. Our goal is to return the company to sustained revenue growth, which requires us to invest in the product experience and in marketing. We are judicious in how we allocate capital and will continue to exercise sound discipline.

Speaker Change: We are judicious in how we allocate capital and we will continue to exercise sound discipline.

Speaker Change: We believe we are already in the process of making important efficiency moves.

Speaker Change: At our <unk> brands and at hyper connect which will result in margins more consistent with our consolidated levels.

Gary Swidler: At Tinder and Hinge, where we see significant global growth opportunities, we want to put the right building blocks in place around marketing, product, and tech, particularly around AI, given how game-changing we think it can be. We believe this will be critical in remaining the leader in helping people spark meaningful connections over the next decade. As we make those important investments, especially in AI talent for which competition is intense, we expect our AOI margins will continue to improve, but only modestly in the near term. Our expectation is that as revenue growth re-accelerates and we remain disciplined on costs, we will see additional expansion in our AOI margins even before any potential relief in App Store fees.

Speaker Change: At Tinder, and hinge, where we see significant global growth opportunities, we want to put the right building blocks in place around marketing product and tech, particularly around AI, given how game changing we think it can be.

Gary Swidler: We believe we're already in the process of making important efficiency moves at our E&E brands and at HyperConnect, which result in margins more consistent with our consolidated levels. At Tinder and Hinge, where we see significant global growth opportunities, we want to put the right building blocks in place around marketing, product, and tech, particularly around AI, given how game changing we think it can be. We believe this will be critical in remaining the leader in helping people spark meaningful connections over the next decade.

Speaker Change: We believe this will be critical in remaining the leader in helping people sparked meaningful connections over the next decade.

Speaker Change: As we make those important investments, especially in AI talent for which competition is intense we expect our Oi margins will continue to improve but only modestly in the near term.

Gary Swidler: As we make those important investments, especially in AI talent for which competition is intense, we expect our AOI margins will continue to improve, but only modestly in the near term. Our expectation is that as revenue growth re-accelerates and we remain disciplined on costs, we will see additional expansion in our AOI margins, even before any potential relief in the App Store. We fully recognize, though, that if top-line growth does not materialize as we expect, we will need to consider all options, including reduced investment and other alternatives.

Speaker Change: Our expectation is that as revenue growth Reaccelerate and we remain disciplined on costs, we will see additional expansion in our margins even before any potential relief in app store fees.

Gary Swidler: We fully recognize, though, that at the top line, growth does not materialize as we expect. We will need to consider all options, including reduced investment and other alternatives. That said, we remain very confident that we're on the right track. Our expectations are to deliver nearly 1.1 billion of free cash flow in 2024. We expect our 2024 AOI to free cash flow conversion level to be elevated compared to prior and future years due to an expected additional App Store payment this year, and we expect our free cash flow conversion rate to return to more normalized levels in 2025.

Speaker Change: We fully recognize though that at the topline growth does not materialize as we expect we will need to consider all options, including reduced investment and other alternatives that said, we remain very confident that we're on the right track.

Gary Swidler: That said, we remain very confident that we're on the right track. Our expectations are to deliver nearly $1.1 billion of free cash flow in 2025. We expect our 2024 AOI to free cash flow conversion level to be elevated compared to prior and future years due to an expected additional app store payment this year. And we expect our free cash flow conversion rate to return to more normalized levels in 2025. As I mentioned, we expect to utilize at least 75% of our free cash flow for capital return via buybacks for the remainder of the year. We believe that at our current stock price, our shares remain the best investment we can make with our capital.

Speaker Change: Our expectations are to deliver nearly $1 1 billion of free cash flow in 2024.

Speaker Change: We expect our 2020 for AOI to free cash flow conversion level to be elevated compared to prior and future years due to an expected additional app store payment. This year and we expect our free cash flow conversion rate to return to more normalized levels in 2025.

Gary Swidler: As I mentioned, we expect to utilize at least 75% of our free cash flow for capital return via buybacks for the remainder of the year. We believe that our current stock price, our shares remain the best investment we can make with our capital. Given the opportunities we see in front of us and the current price of our stock, we believe repurchases will be highly accretive and represent a terrific long-term investment.

Speaker Change: As I mentioned, we expect to utilize at least 75% of our free cash flow for capital return via buybacks for the remainder of the year, we believe that our current stock price our shares remain the best investment we can make with our capital.

Gary Swidler: Given the opportunities we see in front of us and the current price of our stock, we believe repurchases will be highly accretive and represent a terrific long-term investment. We'll have much more to say on our growth, margin, and free cash flow expectations at our Investor Day later this year. With that, I'll ask the operator to open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key.

Speaker Change: Given the opportunities we see in front of us and the current price of our stock. We believe repurchases will be highly accretive and represent a terrific long term investment.

Gary Swidler: We'll have much more to say on our growth, margin, and free cash flow expectations at our Investor Day later this year.

Speaker Change: We will have much more to say on our growth margin and free cash flow expectations at our Investor Day later this year with that I'll ask the operator to open the line for questions.

Operator: With that, I'll ask the operator to open the line for questions. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. If you withdraw your question, please press star, then two.

Speaker Change: We will now begin the question and answer session.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Speaker Change: To withdraw your question. Please press Star then two.

Operator: At this time, we will pause momentarily to assemble the roster.

Operator: To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble the roster, and our first question will come from Nathan Feather of Morgan Stanley. Please go ahead.

Speaker Change: At this time, we will pause momentarily to assemble the roster.

Nathan Sether: In our first question, we'll come from Nathan Sether of Morgan Stanley. Please go ahead.

Bernard Kim: Hey everyone, congrats on the stabilization to use a growth in the quarter. Is there anything outsized that led to that stabilization or more so stacking of a variety of individual improvements? And can you help us contextualize how much of that is due to new user trends versus protection?

Nathaniel Jay Feather: Hey everyone, congrats on the stabilization and 10-day user growth in the quarter. Is there anything outsized that led to that stabilization, or more so a stacking of a variety of individual improvements? And can you help us contextualize how much of that is due to new user trends versus retention? Thank you.

Bernard Kim: Thank you.

Bernard Kim: Thanks, Nathan, for that question. I really like how you framed it around backing tender product improvements. Our work is really a combination of product initiatives building on each other over time. And this is reinforced with really strong marketing that is helping drive stabilization and start contributing to improvements on the back half of this. This year.

Bernard Kim: Thanks, Nathan, for that question. I really like how you framed it around stacking Tinder product improvements. Our work is really a combination of product initiatives building on each other over time, and this is reinforced with really strong marketing that is helping drive stabilization and start contributing to improvements on the back half of this. The trust and safety moves that we made last year are one of a great examples of stacking initiatives, which we know were the right decisions.

Bernard Kim: The trust and safety moves that we made last year are one of, is a great example of stacking initiatives, which we know were the right decisions. And the good news is, we've worked through a lot of those, a lot of that noise, and has led to better user outcomes. And say that the user base has stabilized, retention is improving and growing, and we're making exciting time period for Tinder.

Jason Helfstein: The next question comes from Jason Helfstein of Open Heimer. Please go ahead. Jason, are you there?

Bernard Kim: And the good news is we've worked through a lot of those, a lot of that noise, and it's led to better user outcomes. I can say that the user base has stabilized, retention is improving and growing, and we're making strides at top of funnel again. It's a really exciting time period for us. The next question comes from Jason Helfstein of Oppenheimer. Please go ahead. Jason, are you there?

Speaker Change: Go ahead.

Jason: Jason are you there.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Banks.

Jason Stuart Helfstein: Thanks. There is just one question. So has Tinder returned to normal pair seasonality in 3Q now that MAU has stabilized? And how should we be looking at more normal seasonality? Or should we be looking for more normal seasonality in the first half of next year? Thank you. Thanks for the question, Jason. Let me jump in and try to address it. So, just a few things to point out. I mean, if you look historically, I think what you'll see is that we commonly see sequential improvement in payers, Q3 over Q2, and it's really because of two reasons which are actually related to one another.

Jason Helfstein: Thanks. Just one question.

Speaker Change: Just one question so.

Jason Helfstein: So, has Tinder returned to normal parasyzenality in 3Q, now that MAU has stabilized, and how should we be looking at more normal seasonality, or should we be looking at more normal seasonality in the first half of next year? Thank you.

Speaker Change: Has tinder returned to normal payer seasonality and three Q now that M. A U has stabilized and how should we be looking at more normal seasonality or should we be looking at more normal seasonality in the first half of next year. Thank you.

Gary Swidler: Thanks for the question, Jason. Let me jump in and try to address it. So, just a few things to point out.

Larry: Thanks for the question, Jason Let me, Larry jump in and and try to address it. So just a few things to point out I mean, if you look historically I think what you'll see is that we commonly see sequential improvement in payers a Q.

Gary Swidler: I mean, if you look historically, I think what you'll see is that we commonly see sequential improvement in pairs, Q3 over Q2, and it's really because of two reasons, which are actually related to one another. The first is that Q3 tends to be strong seasonally, because it includes the summer vacation season, which is an active season for dating, and it also includes the back to school period where college students return to campus and also start to date actively. And we actually take advantage of the fact that people are focused on dating in that Q3 period by rolling out a lot of new features and initiatives in that period, and we often even reinforce that with marketing spend to call attention to the apps and to the new features.

Speaker Change: Q3 over Q2, and it's really because of two reasons, which are actually related to one. Another the first is that Q3 tends to be strong seasonally because it includes the summer vacation season, which is an active season for dating and it also includes the back to school period, where college students are returned to cash.

Jason Stuart Helfstein: The first is that Q3 tends to be strong seasonally because it includes the summer vacation season, which is an active season for dating, and it also includes the back-to-school period, when college students return to campus and also start to date actively.

Speaker Change: Compass and also start to date actively and we actually take advantage of the fact that people are focused on dating in that Q3 period by rolling out a lot of new features at initiatives in that period, and we often even reinforced that with marketing spend to call attention to the apps and to the to the new feature.

Gary Swidler: And we actually take advantage of the fact that people are focused on dating in that Q3 period by rolling out a lot of new features and initiatives in that period, and we often even reinforce that with marketing spend to call attention to the apps and to the new features. So Q3 does tend to be very seasonalally strong for us. When you look at Q4, by contrast, it tends to be a weaker period than Q3. And that's because people tend to start focusing on the holiday period and thinking about the holidays, whether it's Thanksgiving in the US, Christmas across the world, et cetera.

Speaker Change: Yours.

Gary Swidler: So, Q3 does tend to be very seasonally strong for us.

Speaker Change: Q3 does tend to be very seasonally strong for us when you look at Q4 by contrast, it tends to be a weaker period, then Q3 and that's because people tend to start focusing on the holiday period I'm thinking about the holidays, whether it's Thanksgiving in the U S.

Gary Swidler: When you look at Q4 by contrast, it tends to be a weaker period than Q3, and that's because people tend to start focusing on the holiday period and thinking about the holidays, whether it's Thanksgiving in the US, Christmas across the world, et cetera, and they focus less on dating. And so, we lose a lot of the fourth quarter as people think about other activities besides dating. And of course, we tend not to roll out as many product initiatives in that fourth quarter, and we generally tend to pull back on marketing, both because the audience isn't as focused, and also because, of course, Q4 tends to be a much more expensive period to market against holiday marketing. And so we tend to reduce our marketing spend in that quarter.

Gary Swidler: And they focus less on dating. And so we lose a lot of the fourth quarter as people think about other activities besides dating. And of course, we tend not to roll out as many product initiatives in that fourth quarter, and we generally tend to pull back on marketing, both because the audience isn't as focused, and also because, of course, Q4 tends to be a much more expensive period to market against holiday marketing, and so we tend to reduce our marketing spend in that quarter.

Speaker Change: Christmas across the world et cetera, and they focus less on dating and so we lose a lot of the fourth quarter as people think about other activities. Besides dating.

Speaker Change: And of course, we tend not to roll on as many product initiatives in that fourth quarter, and we generally tend to pullback on marketing both because the audience isn't as focused and also because of course Q4 tends to be a much more expensive period to market against our holiday marketing and so we tend to reduce our marketing spend in <unk>.

Speaker Change: At quarter, and so you know you're right that when you look at kind of typically what happens Q3 to Q4.

Gary Swidler: And so you're right that when you look at kind of typically what happens from Q3 to Q4 from a user and a payer perspective, we do tend to see some level of sequential weakness in Q4 over Q3 after the strength we've seen in Q3 over Q2. I would say that this year, you know, we plan to follow a similar pattern from the marketing perspective. We've got a new global marketing campaign going at Tinder, which is seeing great success.

Gary Swidler: And so, you know, you're right that when you look at kind of typically what happens, Q3 to Q4 from a user and a payer perspective, we do tend to see some level of sequential weakness in Q4, but Q3, after the strength we've seen, Q3 over Q2. I would say that this year, we plan to follow a similar pattern from the marketing perspective. We've got the new global marketing campaign going at Tinder, which is seeing great success, and I would expect us to invest into marketing in Q3, but then given the holiday period, I would expect us to pull back on a year-over-year basis, and frankly sequentially in Q4 as well on the marketing side.

Speaker Change: From from a user and a payer perspective, we do tend to see some level of sequential weakness in Q4 over Q3. After the strength, we've seen Q3 over Q2.

Speaker Change: I would say that this year.

Speaker Change: We plan to follow a similar pattern from the marketing perspective, we've got the new global marketing campaign going at Tinder, which is seeing great success, and I would expect us to invest into marketing in Q3, but Dan given the holiday period, I would expect us to pull back on a year over year basis, and frankly sequentially.

Gary Swidler: And I would expect us to invest in marketing in Q3. But then, given the holiday period, I would expect us to pull back on a year over year basis and, frankly, sequentially in Q4 as well on the marketing side. So those are just some of the factors to consider as you think about the seasonal trends.

Dan: Really in Q4 as well on the marketing side. So those are just some of the factors to consider as you think about the seasonal trends.

Gary Swidler: So those are just some of the factors to consider as you think about the seasonal trends. And I think you're also right that as we think about 2025, and it's early, and so we'll provide more of an outlook on 2025 as we get a little bit later into this year, as we typically do. But I think that with the stabilized, now based, at Tinder, we would expect a return to more seasonal trends in 2025 as we've seen historically. So I think you're right for both the rest of 24 and 25 from a seasonal seasonality perspective.

Youssef Houssaini Squali: And I think you're also right that as we think about 2025, and it's early, and so, you know, we'll provide more of an outlook on 2025 as we get a little bit later into this year, as we typically do. But I think that with the stabilized base at Tinder now, we would expect a return to more seasonal trends, you know, in 2025, as we've seen historically. So I think you're right for both the rest of 2024 and 2025 from a seasonality perspective. I hope that answers your question. The next question comes from Youssef Squali of Truist.

Speaker Change: You're also right that as we think about 2025 and it's early and so we'll provide more of an outlook on 2025 as we get a little bit later into this year as we typically do but I think that with the stabilized mall base of Tinder, We would expect a return to more seasonal trends.

Speaker Change: In 2025, as we've seen historically, so I think youre right for both the rest of 24 and 25 from a seasonal seasonality perspective.

Gary Swidler: I hope that answers your question.

Speaker Change: I hope that answers your question.

Gary Swidler: Thanks.

Speaker Change: Thanks.

Youssef Squali: The next question comes from you, Seth Squally of Truist. Please go ahead.

Speaker Change: The next question comes from Youssef Squali of Truest. Please go ahead.

Youssef Houssaini Squali: Please go ahead. Great, thank you very much. Maybe a two-parter.

Youssef Squali: Great. Thank you very much.

Bernard Kim: One, BK, can you talk a little bit more about the kind of practical green shoots you're seeing from some of the changes you've made and from increased product velocity in Tinder? And maybe Gary, do you believe, I know you're not guiding quite a bit quite yet for 25, but do you believe that the improvement you're seeing in Tinder, if they sustain themselves into next year, will be enough to get the overall business back to maybe high single-digit, low double-digit growth in 2025? Or do you need to see other drivers, maybe to get you there?

Youssef Houssaini Squali: Great. Thank you very much maybe a two parter one BK can you talk a little bit more about kind of practical green shoots you're seeing from some of the changes you've made and from increased product velocity and tender and maybe Gary do you believe I know youre not guiding quite a bit quite yet for 'twenty five but can you bill.

Bernard Kim: Maybe it's a two-parter. One, BK. Can you talk a little bit more about practical green shoots you're seeing from some of the changes you've made, and from increased product velocity and Tinder?

Gary Swidler: And maybe, Gary, do you believe, I know you're not guiding quite a bit, quite yet, for 25, but do you believe that the improvement you're seeing in Tinder, if they sustain themselves into next year, are enough to get the overall business back to maybe high single digit low double digit growth in 2025, or do you need to see other drives that you can get you there?

Gary: Please that the improvement youre seeing in there.

Speaker Change: If they sustain themselves into next year are enough to get the overall business back to maybe high single digit low double digit growth in 2025 or do you need to see other drive.

Gary: To get to that thank you Barry.

Bernard Kim: Thank you very much. Great. Let me take a stab at describing the progress that we're making in Tinder. The turnaround is in progress, and we're seeing great momentum. The team is super nimble when it comes to making decisions, as some changes work, and some changes don't, but the product velocity continues to be strong. We're making behind-the-scene improvements like recommendation changes, and that's increasing user engagement, and doing really positive things with driving better user outcomes. At the same time, the marketing velocity continues to be strong. Like Gary mentioned, we continue to market, and we're solidifying Tinder's brand position in the marketplace.

Barry: Great Let me take a stab at describing the progress that we're making in tender the turnaround is in progress and we're seeing great momentum.

Gary Swidler: Thank you very much. Great, let me take a stab at describing the progress that we're making on Tinder. The turnaround is in progress, and we're seeing great momentum. The team is super nimble when it comes to making decisions, as some changes work and some changes don't, but the product velocity continues to be strong. We're making behind the scenes improvements like recommendation changes, and that's increasing user engagement and doing really positive things for driving better user outcomes. At the same time, marketing velocity continues to be strong.

Speaker Change: The team is super nimble when it comes to making decisions as some changes work and some changes down but the product velocity continues to be strong, we're making behind the scene improvements like recommendation changes and that's increasing user engagement and doing really positive things with driving better user outcomes.

Gary: At the same time the.

Gary: The marketing velocity continues to be strong like Gary mentioned, we continue to market and we're solidifying tenders brand position in the marketplace.

Bernard Kim: Like Gary mentioned, we continue to market, and we're solidifying Tinder's brand position in the market. We're investing in product marketing where it matters most. If I were to describe the green shoes that you were looking for, the things that get me really excited are when product and marketing really come together.

Bernard Kim: We're investing in product map marketing, where it matters most.

Gary: We're investing in product map marketing, where it matters. Most if I were to describe the green shoots that you were looking for the things that get me really excited is when product and marketing really come together a good example of that is what's happening right now with the Olympics were actually seen a 25% increase.

Bernard Kim: If I were to describe the green shoes that you were looking for, the things that get me really excited is when product and marketing really come together. A good example of that is what's happening right now with the Olympics. We're actually seeing a 25% increase in swipe activity in France, and a 105% increase in Tinder Passport mode, and that activity that's happening in Paris. We actually purposefully unfundled Tinder Passport, so anyone around the world can teleport into Paris and interact with real athletes, and that's with integrated marketing at the same time. Something that I'm really proud of.

Bernard Kim: A good example of that is what's happening right now with the. We're actually seeing a 25% increase in swipe activity in France and 105% increase in Tinder Passport mode, and that activity that's happening in Paris. We actually purposefully unbundled Tinder Passport so anyone around the world can teleport into Paris and interact with real athletes.

Gary: And swipe activity in France, and 105% increase in Tinder passport mode and that activity that's happening in Paris, we actually purposefully unbundle tinder passport so anyone around the world can teleport into Paris, and interact with real athletes and that's with.

Bernard Kim: And that's with integrated marketing at the same time. Something that I'm really proud of. Our Olympics content that our marketing team has been working on has seen over 15 million impressions and over 10 million views. It's super exciting. Now we have a clear vision for Tinder's future, and I can't wait to share more about that in our upcoming investor presentation. On your question about 2025, I'm going to resist the temptation to provide our outlook now and wait, as we typically do until the fall period to do that.

Speaker Change: <unk> marketing at the same time, something that I'm really proud of our Olympics content that our marketing team has been working line has seen over 15 million impressions and over 10 million views, it's super exciting.

Bernard Kim: Our Olympics content that our marketing team has been working on has seen over 15 million impressions, and over 10 million views. It's super exciting.

Bernard Kim: Testing. Now, we have a clear vision for Tinder's future, and I can't wait to share more around that in our upcoming Investor Day.

Speaker Change: Now we have a clear vision for tenders future and I can't wait to share more around that at our upcoming Investor day.

Gary Swidler: Daniel, on your question about 2025, I'm going to resist the temptation to provide our outlook now and wait, as we typically do, until the fall period to do that.

Speaker Change: On your question about 2025.

Speaker Change: I'm going to resist the temptation to provide our outlook now and wait as we typically do until the fall period to do that but I would I would say the following which is we've been pretty clear that 2024 and needed to be a year of progress first stabilizing things and then starting to show improvement and I think if you look at the <unk>.

Bernard Kim: But I would say the following, which is that we've been pretty clear that 2024 needed to be a year of progress, first stabilizing things and then starting to show improvement. And I think if you look at the outlook we're providing, and as BK mentioned in his remarks, that's exactly what's happening in the business. We've reached a point where we stabilize users.

Gary Swidler: But I would say the following, which is, you know, we've been pretty clear that 2024 needed to be a year of progress. You know, first stabilizing things and then starting to show improvement. And I think if you look at the outlook we're providing, and as BK mentioned in his remarks, that's exactly what's happening in the business. We've reached a point of stabilizing users. We think it will get better on a year-over-year basis as we get into the back half of this year. And you can also see the same thing following through in-payer trends, as you would expect: stabilization and an expectation for improvement.

Speaker Change: Look, we're providing and as BK mentioned in his remarks, that's exactly what's happening in the business. We've reached a point of stabilizing users. We think it will get better on a year over year basis, as we get into the back half of this year and you can also see the same thing following through in payer trends as you would expect stabilization.

Gary Swidler: We think it will get better on a year-over-year basis as we get into the back half of this year. And you can also see the same thing following through in payer trends, as you would expect, stabilization and an expectation for improvement. And so we're checking the boxes here that we expected to check in that regard. But obviously, we don't consider that to be enough.

Speaker Change: And an expectation for improvement and so we're checking the boxes here that we expected to check in that regard and obviously, we don't consider that to be enough, we need to get back to improving MAU and improving payors on a year over year basis, and so we're going to continue to take those steps, we think that it will continue.

Gary Swidler: And so we're checking the boxes here that we expect it to check in that regard. And obviously we don't consider that to be enough. We need to get back to improving now and improving payers on a year-over-year basis. And so we're going to continue to take those steps. We think that I will continue to prove through this year and into next.

Gary Swidler: We need to get back to improving now and improving payers on a year-over-year basis, and so we're going to continue to take those steps. We think that Tinder will continue to improve through this year and into next, and it's incumbent on Tinder to continue to drive its product and marketing efforts to accomplish that, to attract better users. As we said earlier, to have products out there that people are excited about, that they tell their friends about, that they return to Tinder for.

Gary: Proved through this year and into next and it's incumbent on Tinder to continue to drive its product and marketing efforts to accomplish that to drive better users. As we said earlier to have products out there that people are excited about that they tell their friends about that they return to tender for and as that happens user growth will increase and <unk>.

Gary Swidler: And it's incumbent on Tinder to continue to drive its product and marketing efforts to accomplish that. To drive better users, as we said earlier, to have product out there that Pilar excited about, that they tell their friends about, that they return to Tinder 4. And as that happens, user growth will increase, and ultimately payer growth will increase. And that is really the key that has to happen. I think we're seeing the green shoots, as DK said, the first signs of that. It's still very early, and which is why I'm resisting the temptation to go further in our outlook.

Gary Swidler: And as that happens, user growth will increase, and ultimately, payer growth will increase. And that is really the key thing that has to happen. I think we're seeing the green shoots, as BK said, the first signs of that.

Gary: It's only payer growth will increase and that is really the key that has to happen I think we're seeing the green shoots as DJ said the first signs of that it's still very early and which is why I'm resisting the temptation to go further in our outlook, but we feel good about where we are right now and we feel like we'll continue to make the progress we need to make to position ourselves for a better 2000 <unk>.

Gary Swidler: It's still very early, which is why I'm resisting the temptation to go further in our outlook. But we feel good about where we are right now, and we feel like we'll continue to make the progress we need to make to position ourselves for better. Thank you both. The next question comes from Dan Salmon of New Street Research. Please go ahead. Okay, great. Good morning, everyone.

Gary Swidler: But we feel good about where we are right now, and we feel like we'll continue to make the progress we need to make to position ourselves for a better 2025.

Gary: 25.

Gary: Thank you both.

Gary: The next question comes from Dan Salmon of New Street Research. Please go ahead.

Dan Salman: Question comes from Dan Salman of New Street Research. Please go ahead. Okay, great.

Daniel Salmon: Okay, great good morning, everyone.

Dan Salman: Good morning, everyone. So it's a little bit of an exceptional period here, obviously, as you've guided to sequential growth for Tinder payers for several quarters now. I think that guidance for 250,000 sequential increases is likely even a little stronger than most expectations.

Daniel Salmon: So it's a little bit of an exceptional period here, obviously, as you have guided to sequential growth for tinder payers for several quarters now. And I think that guidance for 250,000 sequential increase is likely even a little stronger than most expectations. So just considering the exceptional nature of the time, maybe, you know, BK or Gary, could you give us a little bit of insight into Tinder pairs trends so far in the third quarter through July? And what gives you confidence in the trends that you're seeing? Right now?

Speaker Change: So it's a little bit of an exceptional period here, obviously as you guided to sequential growth for tinder payers for several quarters now.

Daniel Salmon: I think that guidance for 250000 sequential increase.

Speaker Change: Likely even a little stronger than most expectations. So just considering the exceptional nature of the time maybe.

Gary Swidler: So just considering the exceptional nature of the time, you know, of BK or Gary, could you give us a little bit of view in the Tinder payers trends so far in the third quarter through July? And what gives you confidence in the trends that you're seeing right now?

Speaker Change: BK or Gary could you give us a little bit of a view in the tender payers trends so far in the third quarter through July and what gives you confidence in the trends that youre seeing right.

Speaker Change: Right now thank you.

Gary Swidler: Thank you. Sure, Dan. I'm happy to try to do that. I would say that, you know, the momentum on Tinder payers has really been strengthening over the last several months. And when you look at Q2 as a whole on payers, you know, the period was down sequentially by 78,000. But if we look kind of on a month-over-month basis inside that quarter, we've actually seen very solid sequential payer growth from April to May and May to June. And to your question, giving you a little sneak peek into Q3, we've actually seen continued payer strengths from June into July.

Speaker Change: Sure Dan I'm happy to try to do that.

Gary Swidler: Thank you. Sure, Dan, I'm happy to try to do that. I would say that, you know, the momentum on Tinder payers has really been strengthening over the last several months. And when you look at Q2 as a whole on payers, you know, the period was down sequentially by 78,000. But if we look kind of on a month over month basis inside that quarter, we've actually seen very solid sequential payer growth from April to May and May to June.

Speaker Change: I would say that the momentum on Tinder payers has really been strengthening over the last several months and when you look at Q2 as a whole on payers.

Speaker Change: The period was down sequentially by 78000.

Speaker Change: But if we look kind of on a month over month basis inside that quarter, we've actually seen very solid sequential payer growth from April to May and May to June and to your question, giving you a little sneak peek into Q3, we've actually seen continued payer strengths from June into July so.

Gary Swidler: And to your question, giving you a little sneak peek into Q3, we've actually seen continued payer strength from June into July. So I believe the sequential payer trends are very positive, and that's what's giving us confidence that we're going to be able to have a strong period of sequential net ads for Tinder in Q3. Now, you know, it's only one month into the quarter, so I'll caution you: we've still got work to do to get through August and September.

Gary Swidler: So I believe the sequential payer trends are very positive. And that's what's giving us confidence that we're going to be able to have a strong period of sequential net ads for Tinder in Q3.

Speaker Change: I believe the sequential payer trends are very positive and that's what's giving us confidence that we're going to be able to have a strong period of sequential net adds for tinder in Q3.

Gary Swidler: Now, you know, it's only one month into the quarter. So I'll caution you; we still got work to do to get through August and September. So, you know, we're not done yet. But I believe that we're positioned to deliver on the 250,000 sequential net ads that we provided in our outlook, which would be an improvement in the year-over-year growth rate, which is really what I'm focused on, getting from negative 8 in Q2, which we just reported, to something closer to negative 5 in Q3.

Speaker Change: Now.

Speaker Change: It's only one month into the quarter. So I'll caution you we still got work to do to get through August and September. So we're not done yet, but I believe that we're positioned to deliver on the 250000 sequential net adds.

Gary Swidler: So, we're not done yet, but I believe that we're positioned to deliver on the 250,000 sequential net ads that we provided in our outlook, which would be an improvement in the year over year growth rate, which is really what I'm focused on, getting from negative eight in Q2, which we just reported, to something closer to negative five in Q3. Very helpful. Thanks, Gary. Yep, you're welcome. The next question comes from Ken Grewalewski of Wells Fargo. Please go ahead. Thanks. Good morning, everyone.

Speaker Change: That we provided in our outlook, which would be an improvement in the year over year growth rate, which is really what I'm focused on getting from negative eight in Q2, which we just reported to something closer to negative 5% in Q3.

Gary Swidler: Gary.

Gary Swidler: Very helpful. Thanks, Gary.

Speaker Change: Very helpful. Thanks sure.

Gary Swidler: No, you're welcome.

Speaker Change: Youre welcome.

Ken Gralusk: The next question comes from Ken Graluski of Wells Fargo. Please go ahead.

Speaker Change: The next question comes from Ken <unk> of Wells Fargo. Please go ahead.

Ken Gralusk: Thanks.

Kenneth James Gawrelski: Appreciate the question. As you noted, maybe I'm going to draw you out and try to draw a little bit more on 4Q because I know it's on a lot of investor minds. You noted that tender payer growth would continue to improve in 4Q from the minus 5% year over year in 3Q, but it would also be seasonally weaker than the 3Q plus 250,000 guide quarter over quarter. Do you expect Tinder payers to grow sequentially and 4Q based on where you sit today?

Ken: Thanks, Good morning, everyone I appreciate the question.

Gary Swidler: Good morning, everyone. I appreciate the question. Maybe I'm going to draw you out. Just try to draw you a little bit more on 4Q, because I know it's on a lot of investors' minds. You noted that Tinder payer growth would continue to improve in 4Q from the minus 5% year-over-year in 3Q, but it would also be seasonally weaker than the 3Q plus 250,000 guide quarter to quarter. Do you expect Tinder payers to grow sequentially in 4Q based on where you said today?

Ken: Maybe I wanted to draw you out just trying to drill a little bit more on <unk>, because I know it's on a lot of investor minds. You noted the tender pair growth would continue to improve in <unk> from the minus 5% year over year in <unk>.

Speaker Change: But it would also be seasonally weaker than the than the <unk> plus 250000.

Speaker Change: Guide quarter over quarter.

Speaker Change: Do you expect tinder payors to grow sequentially in <unk> based on on where you sit today.

Gary Swidler: Thank you.

Speaker Change: Thank you.

Gary Swidler: So, again, I'm going to try to return the thinking back to the year-over-year growth and the progress we're trying to make on payers in that regard. And again, trying to get from negative 8Q2 to negative 5Q3, and even though we're not really at the point of providing Q4 outlook, saying that, as I said in the answer to the earlier question, we want to make more progress. We're expecting there to be more progress on a year-over-year basis in Q4. And so we think we'll do something better than negative 5 year-over-year in Q4.

Speaker Change: So again I'm going to try to return the thinking back to the year over year growth and the progress we're trying to make on payers in that regard and again trying to get from negative eight in Q2 to negative 5% in Q3, and you know even though we're not really at the point of providing Q4 outlook.

Kenneth James Gawrelski: Thank you. So again, I'm going to try to return the thinking back to the year-over-year growth and the progress we're trying to make with payers in that regard. And again, trying to get from negative 8 in Q2 to negative 5 in Q3.

Gary Swidler: And, you know, even though we're not really at the point of providing a Q4 outlook, saying that, as I said in the answer to the earlier question, we want to make more progress. We're expecting there to be more progress on a year-over-year basis in Q4. And so we think we'll do something better than negative 5 year-over-year in Q4. And I think if you do the math, you know, we have to get to something better than negative 1 in Q4 on a year-over-year basis to have sequential payer growth in the quarter. And I think, you know, that's a fairly tall order. I think that it's not off the table. I'm not going to take it off the table, but I think it's a fairly tall order.

Speaker Change: Saying that as I said in the answer to the earlier question, we want to make more progress we're expecting there to be more progress on a year over year basis in Q4, and so we think we will do something better than negative five year over year in Q4, and I think if you do the math you have to get we have to get to some.

Gary Swidler: And I think if you do the math, we have to get to something better than negative 1 in Q4 on a year-over-year basis to have sequential payer growth in the quarter. And I think, you know, that's a fairly tall order. I think that it's not off the table. I'm not going to take it off the table, but I think it's a fairly tall order.

Speaker Change: <unk> better than negative one in Q4 on a year over year basis to have sequential payer growth in the quarter and I think.

Speaker Change: That's a fairly tall order I think that it's not off the table I'm not going to take it off the table, but I think it's a fairly tall order and frankly the outlook that we've provided for the full year doesn't assume that we're going to do better than that in Q4, and so that would exceed our current expectations.

Gary Swidler: And frankly, the outlook that we've provided for the full year doesn't assume that we're going to do better than that in Q4. And so, you know, that would exceed our current expectations, and you know again there's a significant amount of seasonality if you look back on Tinder's performance over the years on payers Q4 over Q3 even if you look at Hinge's performance on payers Q4 over Q3 last year if you remember you know it was a weaker period than it has historically been because it is typical to see a seasonal pattern for the reasons that I explained in Jason's question and so you know I just don't think that's the right way to look at it you have to expect seasonal pressure Q4 over Q3 as people focus on the holidays but I do expect to see continued improvement on a year-over-year basis and I think it's important because that's what's going to position us for better performance going into Q1 on a year-over-year basis payers revenue and position us for a stronger 25 than what we've had in 2024 and I think those are the important things to keep in mind. Thank you for the call.

Gary Swidler: And frankly, the outlook that we've provided for the full year doesn't assume that we're going to do better than that in Q4. And so, you know, that would exceed our current expectations. And, you know, again, there's a significant amount of seasonality. If you look back on Tinder's performance over the years, on payers, Q4 over Q3, even if you look at Hinge's performance on payers, Q4 over Q3 last year, if you remember, you know, it was a weaker period than it has historically been because it is typical to see a seasonal pattern for the reasons that I explained in Jason's question.

Speaker Change: And again, there's a significant amount of seasonality. If you look back on tenders performance over the years on payers Q4 over Q3, even if you look at hinges performance on payers Q4 over Q3 last year. If you remember it was a weaker period than it historically been because it is.

Speaker Change: Typical seasonal pattern for the reasons that I explained in Jason's question and so I just don't think that's the right way to look at it you have to expect seasonal pressure Q4 over Q3 as people focus on the holidays, but I do expect to see continued improvement on a year over year basis, and I think it's important because thats whats going.

Gary Swidler: And so, you know, I just don't think that's the right way to look at it. You have to expect seasonal pressure Q4 over Q3 as people focus on the holidays, but I do expect to see continued improvement on a year-over-year basis.

Gary Swidler: And I think it's important because that's what's going to position us for better performance going into Q1 on a year-over-year basis, payers, revenue, and position us for a stronger 25 than what we've had in 2024. And I think those are the important things to keep in mind.

Speaker Change: Position us for better performance going into Q1 on a year over year basis payers revenue and position us for a stronger 25 than what we've had in 2024 and I think those are the important things to keep in mind.

Gary Swidler: Thank you for the color.

Speaker Change: Thank you for the color.

Chris Contourage: The next question comes from Chris Contourage of UBS. Please go ahead.

Speaker Change: The next question comes from Chris <unk> of UBS. Please go ahead.

Christopher Louis Kuntarich: The next question comes from Chris Kuntarich of UBS; please go ahead. Great, thanks for taking the question. Maybe one around the new Swite Jesters and Tinder and the refreshed Explorer experience.

Chris Contourage: Great. Thanks for taking the question.

Christopher Louis Kuntarich: Great. Thanks for taking the question, maybe one around the new swipe jester's and tender on the refreshed.

Bernard Kim: Maybe one around the new swipe gestures and tender and the refreshed Explore experience. Did you just frame how big of a product update this is for us, the product refresh at the end of the last year, or maybe the second part of this question would be, are you assuming any revenue upside from these product efforts in your 24 revenue, God? Vertical Swiping Intender is something that I'm super passionate about. I really believe it can lead to a more fulsome experience and deeper profile discovery.

Speaker Change: <unk> experienced.

Bernard Kim: Did you just frame how big of a product update this is versus the product refresh at the end of last year? Maybe the second part of the question would be, are you assuming any revenue upside from these product efforts on your 24-revenue guide? Thanks. Vertical swiping in Tinder is something that I'm super passionate about.

Speaker Change: Can you just frame how big of a product update. This is first the product refresh at the end of last year and maybe the second part of the question would be are you assuming any revenue upside from these product efforts on your 24 revenue got thanks.

Speaker Change: Vertical swiping and Tinder is something that I'm super passionate about I really believe it can lead to a more fulsome experience and deeper profile discovery.

Bernard Kim: I really believe it can lead to a more fulsome experience and deeper profile discovery. But when it comes to big changes in Tinder, these things do not happen overnight, and they really need to be tested properly. For example, for Swipe Up, there's super valuable real estate given it currently has ALC connected to it. And then Swipe Down to Explore, we have an opportunity to really revamp the entire Explore experience to make it more social, more alive, and more fun. These iterative changes require deep testing.

Bernard Kim: But when it comes to big changes in Tinder, these things do not happen overnight, and they really need to be tested properly. For example, for swipe up, they're super valuable real estate given. It currently has ALC connected to it.

Speaker Change: But when it comes to big changes in tender these things do not happen overnight and they really need to be tested properly for example for swipe up they're super valuable real estate given it currently has ALC connected to it and then swipe down to explore we have an opportunity to really revamped the entire.

Bernard Kim: And then swipe down to a explore; we have an opportunity to really revamp the entire explore experience to make it more social, more alive, and more fun. These iterative changes require deep testing. We have the right team that's on it, and they're tireless around innovation, also making sure we understand the full impact to the ecosystem.

Speaker Change: For experience to make it more social more alive and more fine. These iterative changes require deep testing, we have the right team that's on it and their tireless around innovation also making sure we understand the full impact of the ecosystem.

Bernard Kim: I do think in 24, we did take a moment in time to evaluate the entire user experience, and I believe, as well as the team believes, that it can be a more elegant experience, and that's super important to our teams. Currently, right now, our central innovation team is working together with the Tinder team and leaning in on that user experience. And the things that I'm seeing from them are really exciting, and I think it will lead to an overall better and more elegant experience.

Bernard Kim: We have the right team that's on it, and they're tireless around innovation, also making sure we understand the full impact on the ecosystem. I do think in 24, we took a moment in time to evaluate the entire user experience. And I, as well as the team, believe that it can be a more elegant experience. And that's super important to our team.

Speaker Change: I do think in 'twenty four we did take a moment in time to evaluate the entire user experience and I believe as long as the team believes that it can be a more elegant experience and that's super important to our teams.

Bernard Kim: Currently, right now, our central innovation team is working together with the Tinder team and leaning in on that user experience. And the things that I'm seeing from them are really exciting, and I think they will lead to an overall better and more elegant experience. Maybe just on the part about revenue, I would say, you know, we have a lot of features planned to be tested at Tinder in the fourth quarter, but they're not really expected to be revenue generators in Q4 for 2024. They're really being tested and positioned for 2025. So our revenue outlook for the year really doesn't depend on these features contributing in any meaningful way in any meaningful way to 2025. Got it. Thanks for the call.

Speaker Change: Currently right now our central innovation team is working together with the tinder team and leaning in on that user experience and the things that I'm seeing from them are really exciting and I think it will lead to an overall better and more elegant experience.

Gary Swidler: Maybe just on the part about revenue, I would say, you know, we have a lot of features planned to be tested at Tinder in the fourth quarter. They're not really expected to be revenue generators in Q4 for 2024.

Speaker Change: Maybe just on the part of our revenue I would say we have a lot of features planned to be tested a tender in the fourth quarter, they're not really expected to be revenue generators in Q4 for 2024, there really being tested in position for 2025, So our revenue outlook for the year.

Gary Swidler: They're really being tested and positioned for 2025. So our revenue outlook for the year really doesn't depend on these features, contributing any meaningfully in any meaningful way to 2024.

Speaker Change: Doesn't depend on these features contributing any meaningfully in any meaningful way.

Speaker Change: <unk> 2024.

Justin Patterson: Thanks for the call.

Speaker Change: Got it thanks for the color.

Gary Swidler: You're welcome.

Speaker Change: Youre welcome.

Justin Patterson: The next question comes from Justin Patterson of KeyBank.

Speaker Change: The next question comes from Justin Patterson of Keybanc. Please go ahead.

Justin Tyler Patterson: The next question comes from Justin Patterson of Key Bank. Please go ahead. Great, thank you. Good morning.

Justin Patterson: Please go ahead. Great. Thank you.

Bernard Kim: BK, I was hoping you could touch on the Tinder ecosystem some more. Which inning are you in on improving trust, safety, and user outcomes? And how have user perceptions changed over the past year? Thank you. Our ongoing efforts with Trust and Safety are critical to the success of the long-term ecosystem for Tinder. When it comes to your question on what inning we're in, there literally is no end game.

Justin Tyler Patterson: Great. Thank you good morning, BK I was hoping you could touch on the tinder ecosystem.

Bernard Kim: Good morning. BK, I was hoping you could touch on the Tinder ecosystem for more. What's ending are you in on improving trust safety and user outcomes and how the user perceptions change over the past year? Thank you. Our ongoing effort with trust and safety are critical to the success of the long-term ecosystem Tinder. When it comes to your question on what ending we're in, there literally is no endgame. We're continually looking at improving user experiences. We have the best when it comes to trust and safety and platform and talent that are working on it. And we're making the right decisions every single day, with a focus on better user outcomes.

Justin Tyler Patterson: More which inning are you in on improving trust safety and user outcomes and health user perceptions changed over the past year. Thank you.

Speaker Change: Our ongoing effort with trust and safety are critical to the success of the long term ecosystem tender when it comes to your question on what inning. We're in there literally is no end game, we're continually looking at improving user experiences.

Bernard Kim: We're continually looking at improving the user experience. We have the best when it comes to trust and safety, and the platform and talent that we're working on. And we're making the right decisions every single day with a focus on better user outcomes. But this is not a linear journey, and the work literally never ends.

Justin Tyler Patterson: We have the best when it comes to trust and safety and platform and talent that are working on it and we're making the right decisions have reasonable day with a focus on better user outcomes.

Bernard Kim: But this is not a linear journey, and the work literally never ends.

Justin Tyler Patterson: But this is not a linear journey and the work literally never ends for example, we're continually thinking about big bold features like mandated face photos, which we're going to test and then also new technologies around authenticating users.

Bernard Kim: For example, we're continually thinking about big bold features like mandated face photos, which we are going to test, and then also new technologies around authenticating users. As for perception improvement, it's something that we're really zeroed in on. And like we said in the letter, and I'm going to try to do my best with regards to showcasing this impressive stat. But for women in the US aged 18 to 30, brand perception for Tinder is a place where I can find meaningful connections is up nearly 50%. And at the same time, Tinder's hookup stigma has fallen by 20%.

Bernard Kim: For example, we're continually thinking about big, bold features like mandated face photos, which we are going to test, and then also new technologies around authenticating users. As for perception improvement, it's something that we're really zeroed in on. And like we said in the letter, and I'm going to try to do my best with regard to showcasing this impressive stat, but for women in the US aged 18 to 30, brand perception for Tinder as a place where I can find meaningful connections is up nearly 50%. And at the same time, Tinder's hookup stigma has fallen by 20%.

Speaker Change: As for perception improvement its something that were really zeroed in on and like we said in the letter and I'm going to try to do my best with regards to showcasing this impressive stat, but for women in the U S. Aged 18 to 30 brand perception for Tinder is a place where I can find meaningful connections.

Justin Tyler Patterson: Is up nearly 50% and at the same time hinders hookup stigma has fallen by 20%.

Bernard Kim: of 10%. This is tremendous progress with the demographic that our marketing teams are speaking directly to. Some really proud of these efforts.

Cory Alan Carpenter: This is tremendous progress with the demographic that our marketing teams are speaking directly to, so I'm really proud of these guys. The next question comes from Cory Carpenter of J.P. Morgan. Please go ahead.

Justin Tyler Patterson: This is tremendous progress with the demographic that our marketing teams are speaking directly too. So I'm really proud of these efforts.

Cory Carpenter: The next question comes from Cory Carpenter of JP Morgan. Please go ahead. Thank you.

Speaker Change: The next question comes from Cory Carpenter of Jpmorgan. Please go ahead.

Gary Swidler: Thank you. Could you expand on the rationale and some of the reasons behind the exit of the live streaming business? Thank you. Sure, Cory, why don't I take that one?

Cory Alan Carpenter: Thank you could you expand on the rationale and some of the math behind the exit of the live streaming business. Thank you.

Cory Carpenter: Could you expand on the rationale in some of that behind the X-ray? Sure, Cory.

Justin Tyler Patterson: Yeah.

Speaker Change: Sure why don't I take that one I know, there's a lot of moving pieces to this and it's a little bit complicated. So let me try to step through it.

Gary Swidler: Why don't I take that one? I know there's a lot of moving pieces to this, and it's a little bit complicated. Let me try to step through it. Just to clarify, first of all, we really have two pieces where we have live streaming. We've got a stand on app, Hakuna, and Asia, which focuses on providing live streaming in Japan and Korea. And then we provide live streaming services alongside some of our dating business in Plenty of Fish primarily on a couple of days. There's a couple of the other US-based apps.

Gary Swidler: I know there are a lot of moving parts to this, and it's a little bit complicated, so let me try to step through it. Just to clarify, first of all, we really have two pieces where we have live streaming. We've got a stand-alone app, Hakuna, in Asia, which focuses on providing live streaming in Japan and Korea. And then we provide live streaming services alongside some of our dating business, in Plenty of Fish primarily and a couple of other US-based apps.

Gary Swidler: And those are the businesses that we're planning to exit here in the third quarter. And what I would say about live streaming is, you know, they basically have the same types of expenses as we see in our other dating businesses.

Gary Swidler: But there's one significant difference, which is that we need to provide a revenue share to the live streamers. And that can be, you know, 20% or even more of the revenue. And so that's an extra expense that we really don't see in our dating businesses.

Speaker Change: Just just to clarify first of all we really have two pieces, where we have last year and we've got a standalone app Accoona in Asia, which focuses on providing live streaming in Japan in Korea, and then we provide live streaming services alongside some of our dating business in plenty of fish, primarily in a couple of the other U S based apps and those.

Gary Swidler: And those are the businesses that we're planning to exit here in the third quarter. And what I would say on live streaming is, they basically have the same types of expenses as we see in our other dating businesses. But there's one significant difference, which is we need to provide a revenue share to the live streamers. And that can be 20% or even more of the revenue. And so that's an extra expense that we really don't see in our dating businesses. And as a result of that, the margins in live streaming are probably in the 20% range for a business at that scale versus our dating businesses, which, as you know, can be 30% or higher from a margin perspective.

Speaker Change: As of the businesses that we're planning to exit here in the third quarter and what I would say on live streaming is they basically have the same types of expenses as we see in our other dating businesses, but there is one significant difference, which is we need to provide a revenue share to the live streamers and that can be 20 <unk>.

Speaker Change: Sent or even more of the revenue and so that's an extra expense that we really don't see in our in our data businesses and as a result of that the margins in live streaming.

Gary Swidler: And as a result of that, the margins in live streaming are probably in the 20% range for a business at that scale versus our dating businesses, which, as you know, can be 30% or higher from a margin perspective. So there's a significant difference in the economics of the live streaming business versus the dating business. In addition to them having lower margins, it's become much more challenging to grow live streaming in our apps over the last few years because there's been significant competition from very well-funded players, including most of the big social media platforms, and I, of course, point to TikTok as the most significant and dominant player in the space.

Speaker Change: Probably in the 20% range for a business that's at scale versus our data businesses, which as you know can be 30% or higher from a margin perspective. So there is a significant difference in the economics of the live streaming business.

Gary Swidler: So there's a significant difference in the economics of the live stream business versus the dating business. In addition to them having lower margins, it's become much more challenging to grow live streaming in our apps over the last few years because there's been significant competition from very well-funded players, including most of the big social media platforms. And I, of course, point to TikTok as the most significant dominant player in the space. And so when we entered into live streaming a few years ago, and the, you know, the world was different; it was pre-COVID and everything else.

Speaker Change: Versus the dating business in.

Speaker Change: In addition to them, having lower margins, it's become much more challenging to grow live streaming in our apps over the last few years, because theres been significant competition from very well funded players, including most of the big social media platforms and that of course pointed tictoc as as the most significant dominant.

Speaker Change: <unk> in the space and so when we entered into live streaming a few years ago and the world was different than it was pre COVID-19 and everything else, but live streaming at that point, we thought provided attractive kind of adjacent additional source of revenue for us and right now this year, we expected roughly a 60 million.

Gary Swidler: And so when we entered into live streaming a few years ago, the world was different, it was pre-COVID and everything else, but live streaming, at that point, we thought, provided an attractive kind of additional source of revenue for us. And right now, this year, we expected roughly a $60 million revenue contribution from live streaming. But growing that revenue base has become much, much more challenging in the face of competition and the changed landscape and dynamics that we're facing.

Gary Swidler: But live streaming at that point, we thought, provided attractive kind of adjacent additional source of revenue for us. And, you know, right now this year, we expected roughly a $60 million revenue contribution from live streaming. But growing that revenue base has become much, much more challenging in the face of the competition and the change, you know, landscape and dynamics that we're facing. And not only that, but to reach the scale that we need to reach to achieve even reasonable margins from our perspective was going to take a significant amount of investment for a significant number of years, even in the best-case scenario.

Speaker Change: <unk> revenue contribution from live streaming, but growing that revenue base has become much much more challenging in the face of the competition and the changed landscape in dynamics that were facing and.

Gary Swidler: And not only that, but to reach the scale that we need to reach to achieve even reasonable margins from our perspective was going to take a significant amount of investment for a significant number of years, even in the best case scenario. And so when you boil it down, we felt that these businesses are not strategic to what we do. It's not likely...

Speaker Change: And not only not only that but to reach the scale that we need to reach to achieve even reasonable margins from our perspective was going to take a significant amount of investment for a significant number of years, even in the best case scenario and so when you boil it down we felt that these bids are not strategic to what.

Gary Swidler: And so when you boil it down, we felt that these businesses are not strategic to what we do. It's not likely they're not likely to be revenue growth enhancing, and they're likely to be margin dilutive for a long period of time. It makes more sense in our minds to exit those businesses now. And in fact, what we can do is we can redeploy some of the great talent we have in these businesses into other businesses of ours where we have a much stronger position. And so we made that decision and, you know, we're foregoing the $60 million revenue, which for next year probably will create a one to two point growth revenue growth headwind for us, but these were, you know, a wide drag this year.

Speaker Change: We do it's not likely they're not likely to be revenue growth enhancing and they are likely to be margin dilutive for a long period of time. It makes more sense in our minds to exit those businesses now and in fact, what we can do is we can redeploy some of the great talent, we have in these businesses into other.

Gary Swidler: They're not likely to be revenue growth enhancing, and they're likely to be margin dilutive for a long period of time. It makes more sense, in our minds, to exit those businesses now. And in fact, what we can do is we can redeploy some of the great talent we have in these businesses into other businesses of ours where we have a much stronger position. And so we made that decision, and we're foregoing the $60 million in revenue, which for next year probably will create a one to two point revenue growth headwind for us. But these were AOI drags this year.

Speaker Change: <unk> of ours, where we have a much stronger position and so we made that decision.

Speaker Change: And we're foregoing the $60 million of revenue, which for next year, probably will create a one to two point growth revenue growth headwind for us but these were.

Speaker Change: OE drag this year and so when we look at the margin impact for next year I think we can expect at least a 50 basis points improvement in the margins as a result of exiting these businesses. So we will factor all of that and everything else. We're thinking about for next year, but the move to exit now should create a 50 basis point.

Gary Swidler: And so when we look at the margin impact for next year, I think we can expect at least a 50 basis points improvement in the margins as a result of exiting these businesses. So, you know, we'll factor all that into everything else we're thinking about for next year, but the move to exit now should create a 50 basis point tailwind for us on the margins.

Gary Swidler: And so when we look at the margin impact for next year, I think we can expect at least a 50 basis points improvement in the margins as a result of exiting these businesses. So we'll factor all that into everything else we're thinking about for next year, but the move to exit now should create a 50 basis point tailwind for us on the margins. The only other thing I wanted to make sure people were clear on, and VK alluded to it in his remarks, as a result of our decision to exit live streaming and some other things that we're doing around the portfolio, we're expecting to reduce our workforce by 6% net of people that we're moving into other businesses and that we're retaining.

BK: A tailwind for us on the margin side and the only other thing I wanted to make sure people are clear on and BK alluded to it in his remarks as a result of our decision to exit live streaming and some other things that we're doing around the portfolio, we're expecting to reduce our workforce by 6% net of people that were moved.

Gary Swidler: Judd. The only other thing I wanted to, you make sure people are clear on, and VK alluded to it in his remarks, as a result of our decision to exit live streaming, and some other things that we're doing around the portfolio, we're expecting to reduce our workforce by 6% net of people that we're moving into other businesses, and that we're retaining. And so that should lead to $13 million of savings, which is on top of the savings that we've already talked about and that we're planning to achieve by full year 2026 from the re-platforming at the E&E businesses.

Speaker Change: <unk> into other businesses and that we are retaining and so that should lead to $13 million of savings, which is on top of the savings that we've already talked about and that we're planning to achieve by full year 2026.

Gary Swidler: And so that should lead to $13 million of savings, which is on top of the savings that we've already talked about and that we're planning to achieve by full year 2026 from the replatforming at the E&E businesses. So I just want to make sure people understand all the moving pieces around the efficiencies, because there are quite a few of them.

Speaker Change: From the re platforming at the <unk> business. So I just want to make sure people understand all the moving pieces around the efficiencies because there are quite a few of them. So.

Gary Swidler: So I just want to make sure people understand all the moving pieces around the efficiencies, because there are quite a few of them. So I hope that helps answer your question, and I appreciate the question.

Ygal Arounian: So I hope that helps answer your question, and I appreciate the question. The next question comes from Ygal Arounian of Citigroup. Please go ahead. Thanks. Good morning, guys. I wanted to shift to Hinge.

Speaker Change: So I hope that helps answer your question and I appreciate the question.

Ygal Arounian: The next question comes from Ygal Arounian of Citigroup. Please go ahead. Thanks. Good morning, guys.

Speaker Change: The next question comes from Yigal Iranian of Citigroup. Please go ahead.

Ygal Arounian: Thanks, Good morning, guys I wanted to shift the Haynesville, we got a lot of questions from investors on.

Bernard Kim: We got a lot of questions from investors on Hinge's strength and how to think about, you know, the difference there, or the better than industry-level strength that we've seen consistently at Hinge, and we're seeing acceleration here again this quarter. Can you, I know you touched on it on the call a little bit, but can we expand on that a little bit? How much of what you're seeing is kind of simple market expansion and monetization expansion versus, you know, product initiatives and factors?

Ygal Arounian: Once I shift the hinge, we've got a lot of questions from investors on the hinge of strength, and how to think about, you know, the difference there, or the better than industry level strength that we've seen consistently at hinge, and we're seeing what we expand on that a little bit. How much of what you're seeing is kind of simple market expansion, monetization expansion versus, you know, product initiatives and factors. What do you think the biggest product factors have been in what you're seeing there in the strength and how is that informed the product roadmap that you're laying out for Hinge?

Speaker Change: <unk> had just strengths.

Ygal Arounian: And how to think about.

Speaker Change: The difference there or the.

Speaker Change: Better than industry level strength that we've seen consistently at hedging we're seeing acceleration here again this quarter.

Speaker Change: And I know you touched on it on the call a little bit, but two quick spend on that a little bit how much of what youre seeing is kind of a simple market expansion monetization expansion versus.

Speaker Change: Product initiatives and factors.

Bernard Kim: What do you think the biggest product factors have been in what you're seeing there in the strength, and how does that inform the product roadmap that you're laying out for Hinge? Thanks. Hinge is an absolute rocket ship for Match Group, and it's on track to become a billion-dollar-plus revenue company. We're super pleased with its current performance and the continual investment in product as well as in marketing and global expansion. But the team is not resting on its laurels. We're continually building out new features and improving the user experience. Examples of that are things that are in test and fully rolled out like Top Photo and Photo Finder, which utilize best in class AI.

Speaker Change: What do you think the biggest product.

Speaker Change: Factors have been and what Youre seeing there and the strength and how is that informing the product roadmap that you are laying off range. Thanks.

Bernard Kim: Thanks. Hinge is an absolute rocket ship for Match Group, and it's on track to become a billion dollar plus revenue business. We're super pleased with its current performance, and the continual investment in product as well as in marketing and global expansion. But the team is not resting on its laurels. We're continually building out new features and improving user experiences. Examples of that are things that are in test and fully rolled out like top photo and photo finder, which utilize best in class AI. I'm really impressed by the team's vision of incorporating AI into the full user experience, and in every touch point of the Hinge user experience.

Speaker Change: Hinges in absolute rocket ship for match group and it's on track to become a $1 billion plus revenue business.

Speaker Change: Super pleased with its current performance and the continual investment in product as well as in marketing and global expansion, but the team is not resting on his laurels. We're continually building out new features and improving user experiences. Examples of that are things that are in test.

Speaker Change: <unk> fully rolled out like top photo and photo finder, which utilize best in class AI.

Shweta R. Khajuria: I'm really impressed by the team's vision of incorporating AI into the full user experience and at every touchpoint of the hinge user experience. Our future roadmap will utilize AI to really fulfill Hinge's North Star around getting people on great dates even faster. So there's continued momentum, and we're continuing to invest in Hinge's growth. The next question comes from Shweta Khajuria of Wolfe Research. Please go ahead. Thank you. Let me try two, please.

Speaker Change: I'm really impressed by the team's vision of incorporating AI into the full user experience and in every touch point of the hinge user experience.

Bernard Kim: Our future roadmap will utilize AI to really fulfill that hinge is nor star around getting people on great dates even faster. So there's continued momentum, and we're continuing to invest in Hinge's growth.

Speaker Change: Our future road map will utilize AI to really fulfill that hinges northstar around getting people on great dates even faster. So there's continued momentum and we're continuing to invest in hinges grow.

Speaker Change: Yes.

Schwarza Codernia: The next question comes from Schwarza, Codernia of Wolf Research. Please go ahead. Thank you.

Schweitzer <unk>: The next question comes from Schweitzer <unk> of Wolfe Research. Please go ahead.

Speaker Change: Thank you, let me say I do believe VJ could you please talk.

Bernard Kim: BK, could you please talk about your conversations with Starboard? The intra-quarter, there was a release. To the extent that you can share any commentary on that, I would very much appreciate it. And then Gary, when we think about the third quarter net ads for Tinder, could you please provide specific examples that give you confidence in this number, in terms of, is it the a la carte, the improvement in a la carte that's going to be helping? Is it unbundling and a la carte?

Bernard Kim: Let me try to please, VK, could you please talk about your conversations with Starboard, Interacorder? There was a release to the extent that you can share any commentary on that. Very much appreciate it.

Schweitzer: Talk about your conversations with starboard.

Speaker Change: Quarter, there was a release.

Speaker Change: To the extent that you can share.

Speaker Change: Any commentary on that and very much appreciate it and then Gary.

Gary Swidler: Is it the product updates that you've made so far that will just be compounding? Could you help us sort that out in terms of what is contributing to the third quarter net ads? Thanks a lot.

Gary Swidler: And then Gary, when we think about the third quarter net ads for Tinder, could you please provide specific examples that give you confidence in this number in terms of, is it the Alakard that the improvement in Alakard that's going to be helping? Is it unbundling and Alakard? Is it the product updates that you've made so far that will just be compounding? Could you help us parse that out in terms of what is contributing to the third quarter net ads?

Speaker Change: When we think about the third quarter net adds for tinder.

Speaker Change:

Speaker Change #105: Could you. Please provide specific examples that give you confidence in this in this number in terms of is it the other client that the improvement in our card that's going to be helping us at unbundling and olive garden is it the.

Speaker Change: Product updates that we have made so far and that will just be compounding could you help us parse that out in terms of what is contributing to the third quarter net adds thanks a lot.

Gary Swidler: Thanks a lot.

Bernard Kim: I can take the Starboard section, but we've had some initial interactions with Starboard, which were typical with interactions that we've had with other potential investors.

Speaker Change: I can take the starboard section, but we've had some initial interactions with starboard which were typical with interactions that we've had with other potential investors than as you. All know on July 15th they sure that they were a large shareholder and published a letter.

Bernard Kim: I can take the Starboard section, but we've had some initial interactions with Starboard, which were typical of interactions that we've had with other potential investors. Then, as you all know, on July 15th, they announced that they were a large shareholder and published a letter. Now, we believe that the topics raised by Starboard are already key areas of focus for our teams and are things that we have actually heard from other significant shareholders as well.

Gary Swidler: Then, as you all know, on July 15th, they shared that they were a large shareholder and published a letter. Now, we believe that the topics raised by Starboard are already key areas of focus for our teams and are things that we have actually heard from other significant shareholders as well. These three areas are returning Tinder to growth, improving margins, and returning more capital to shareholders. We've been taking significant steps in all three of these areas, including investing in Tinder product and marketing to drive growth, reducing headcount, and undertaking tech replatforming to drive margins, and then redeploying 75% of our free cash flow to buy back shares.

Speaker Change: Now we believe that the topics raised by Star Board are already key areas of focus for our teams and are things that we have actually heard from other significant shareholders as well.

Bernard Kim: These three areas are returning Tinder to growth, improving margins, and returning more capital to shareholders. We've been taking significant steps in all three of these areas, including investing in Tinder product and marketing to drive growth, reducing headcount and undertaking tech replatforming to drive margins, and then redeploying 75% of our free cash flow to buy back shares. We continue to look forward to engaging with all of our shareholders and then getting their input on how we can continue to drive shareholder value.

Speaker Change: These three areas are.

Speaker Change: We are returning tender to growth improving margins and returning more capital to shareholders.

Speaker Change: We've been taking significant steps in all three of these areas, including investing in tinder product and marketing to drive growth, reducing head count and undertaking tech re platforming to drive margins and then redeploying 75% of our free cash flow to buy back.

Speaker Change: Shares.

Gary Swidler: We continue to look forward to engaging with all of our shareholders and then getting their input on how we can continue to drive shareholder value.

Speaker Change: We continue to look forward to engaging with all of our shareholders and then getting their input on how we can continue to drive shareholder value.

Gary Swidler: I think on the second part of your questions, you really have to think of the trajectory of Tinder as BK said earlier, of being driven by a series of things, not just one particular thing, and it's really on product and on marketing, and so we've cleaned up the ecosystem that has helped. It's led to a stabilization now in users that is helping the physics of the business in terms of, you know, pay or trends, et cetera. The marketing is really resonating. I think that the sense of Tinder as a place where people can meet people is really improving.

Speaker Change: I think on the second part of your question is whether.

Bernard Kim: I think on the second part of your question, Shweta, you really have to think of the kind of trajectory of Tinder, as BK said earlier, of being driven by a series of things, not just one particular thing.

Speaker Change: You really have to think of kind of the trajectory of tinder as BJ said earlier of being driven by a series of things not just one particular thing.

BJ: And it's really on product and on marketing and so we've cleaned up the ecosystem that has helped it's led to a stabilization now in users that is helping the physics of the business in terms of payer trends et cetera.

Speaker Change: The marketing is really resonating I think that the sense of Tinder is a place where people can meet people is really improving the perception of the app continues to improve all of that marketing spend that we've done on the brand over the last year plus is really starting to pay benefits and to all of that is contributing as well as a series of product initiatives and things that we're doing whether there.

Gary Swidler: The perception of the app continues to improve. All that marketing spend that we've done on the brand over the last year plus has really started to pay benefits. And so all of that is contributing, as well as a series of product initiatives and things that we're doing, whether those are optimizations, which we continue to do, or whether those are, you know, other feature changes as well.

Speaker Change: Our optimizations, which we continue to do or whether those are other feature changes as well and so it's really a bunch of things starting to work at Tinder, which frankly has been the plan all along that it was going to be a multifaceted approach that wasn't going to be one silver bullet, but rather be a series of initiatives product and marketing working together to.

Gary Swidler: And so it's really a bunch of things starting to work at Tinder, which frankly has been the plan all along, that it was going to be a multifaceted approach that wasn't going to be one silver bullet, but rather be a series of initiatives, product, and marketing working together to drive improvement at Tinder. And I think that's what you're really starting to see the fruits of here as we expect the third quarter to shape up.

Speaker Change: <unk> improvement at Tinder, and I think that's what you're really starting to see the fruits of here as we expect the third quarter to shape up.

Gary Swidler: Okay, thanks BK. Thanks, Gary.

Speaker Change: Okay. Thanks, Vijay Thanks, Gary.

Speaker Change: Yeah.

Benjamin Black: The next question comes from Benjamin Black of Deutsche Bank. Please go ahead.

Speaker Change: The next question comes from Benjamin Black of Deutsche Bank. Please go ahead.

Gary Swidler: And it's really on product and on marketing. And so we've cleaned up the ecosystem, that has helped, it's led to a stabilization now in users, that is helping the physics of the business in terms of, you know, payer trends, etc. And I think that's what you're really starting to see the fruits of here, as we expect the third quarter to shape up. Okay. Thanks, VK. Thanks, Gary. The next question comes from Benjamin Black of Deutsche Bank. Please go ahead.

Benjamin Black: Great, thank you for taking my question. Just one of the capital allocations. So, you know, you've given a target of at least 75% for capital returns, but for the last two quarters, you returned more than 100%. So, you know, how are you thinking about the right amount here?

Benjamin Thomas Black: Great. Thank you for taking my question just one on capital allocation. So you've given the target of at least 75% for capital returns for the last two quarters, we returned more than 100%. So how are you thinking about the right amount here and would you potentially also consider a dividend. Thank you.

Benjamin Thomas Black: Great. Thank you for taking my question. Just one on capital allocation. So, you know, you've given a target of at least 75% for capital returns, but for the last two quarters, you returned more than 100%. So, how are you thinking about the right amount here? And would you potentially also consider a dividend? Thank you.

Gary Swidler: And would you potentially also consider a dividend?

Gary Swidler: Thank you. Thanks, Ben.

Speaker Change: Thanks, Pat Let me, let me jump in and take that look I think that 75% plus return is the right level for the company to commit to and and that remains our stated commitment.

Gary Swidler: Look, I think that 75% plus return is the right level for the company to commit to, and that remains our stated commitment. But you know, the board evaluates the right amount for us to be deploying for buybacks on an ongoing basis. They're very involved in this aspect of the business. They look at our share price, they look at our business outlook, you know, they look at a variety of factors.

Gary Swidler: Let me jump in and take that. Look, I think that 75% plus return, you know, is the right level for the company to commit to. And that remains our state of commitment. But, you know, the board evaluates the right amount for us to be deploying for buybacks on an ongoing basis. They're very involved in this aspect of the business. They look at our share price; they look at our business outlook. You know, they look at a variety of factors, and we try to make a determination of what the right level to buyback is. And as you rightly pointed out, we've bought back just over 100% through the first half of the year.

Speaker Change: But you know the board evaluates the right amount for us to be deploying for buybacks on an ongoing basis, they're very involved in this aspect of the business. They look at our share price they look at our business outlook.

Speaker Change: They look at it at a variety of factors and we try to make a determination of what the right level to buyback is.

Gary Swidler: And we try to make a determination of what the right level to buy back is. And, as you rightly pointed out, we bought back just over 100% through the first half of the year. So we've been more aggressive. And obviously, that was in part because, you know, our share price in our minds was very low relative to the opportunity we see for the company over the coming years.

Speaker Change: And as you rightly pointed out we bought back just over 100% through the first half of the year. So we've been more aggressive and obviously that was in part because our share price in our mind was very low relative to the opportunity we see for the company over the coming years. So you know it's not an immediate one quarter thing, but we think over the long term.

Gary Swidler: So, we've been more aggressive. And obviously, that was in part because, you know, our share price, in our mind, was very low relative to the opportunity we see for the company over the coming years. So, you know, it's not an immediate one-quarter thing, but we think over the long term. You know, we're going to feel good about having bought a lot of stock back at these levels. And so, we factor all of that in, and we'll continue to do so as we move forward.

Speaker Change: To feel good about having bought a lot of stock back at these levels and so we factor all of that in and we will continue to do so as we move forwards.

Gary Swidler: Awards. As far as the dividend goes, you know, it's an interesting question. As you're probably aware, some, you know, very successful large growth companies have implemented dividends over the last little while, and we think it's, you know, a logical thing to do as a component of the capital returns of dividends working alongside buybacks to drive return for shareholders. It's something that we have thought about and continue to think about, but we don't think that, you know, now is the time to do it, and we're steadfastly focused on buybacks, you know, at this point in time.

Gary Swidler: So, you know, it's not an immediate one-quarter thing, but we think over the long term, we're going to feel good about having bought a lot of stock back at these levels. And so we factor all of that in, and we'll continue to do so as we move forward. As far as the dividend goes, you know, it's an interesting question. As you're probably aware, some very successful, large growth companies have implemented dividends over the last little while.

Speaker Change: As far as the dividend goes you know, it's an interesting question as Youre, probably aware some very successful large growth companies have implemented dividends over the last little while and we think it's a logical thing to do as a component of the capital returns our dividends working alongside buyback.

Gary Swidler: And we think it's, you know, a logical thing to do as a component of the capital return. So dividends working alongside buybacks to drive return for shareholders. It's something that we have thought about and continue to think about. But we don't think that, you know, now is the time to do it.

Speaker Change: <unk> to drive return for shareholders is something that we have thought about and continue to think about but we don't think that now is the time to do it and we're steadfastly focused on buybacks.

Gary Swidler: And we're steadfastly focused on buybacks, you know, at this point in time. So that is unchanging at the moment. But if there's, you know, updates in our thinking, we'll certainly convey that to you all. I think we have time for one more question after Ben, so why don't we just try to get that in here quickly? Okay, the next question comes from Curtis Nagle of Bank of America. Please go ahead.

Speaker Change: At this point in time, so that is unchanging at the moment, but if theres updates in our thinking will certainly convey it to you all.

Gary Swidler: So that is unchanging at the moment, but if there's, you know, updates in our thinking, we'll certainly convey it to you all.

Curtis Nagle: I think we have one maybe for one more question after Ben, so why don't we just try to get that in here quickly.

Ben: Alright, I think we have time, maybe for one more question. After Ben So why don't we just try to get that in here quickly.

Curtis Nagle: The next question comes from Curtis Nagle of Bank of America. Please go ahead. Great. Thanks so much for squeezing me in.

Speaker Change: The next question comes from Curtis Nagle of Bank of America. Please go ahead.

Curtis Smyser Nagle: Great, thanks so much for squeezing me in. So just returning to Hinge, how do we think about the growth prospects and timing and, I guess probability, of that $1 billion plus in revenue, outperformed in 2Q, and 3Q guide ahead? In the letter, you know, I think you said you're now targeting to be the number two brand. That's new. To me, I think it suggests you're more confident in growth. So is that fair?

Curtis Smyser Nagle: Great. Thanks, so much for squeezing me in so just return it back to hinge.

Curtis Nagle: So just return it back to Hinge. How do we think about the growth projects, prospects and timing, and I guess probability I hit in that one billion plus and revenue, I performed in 2Q, 3Q guide ahead in the letter. You know, I think you said you're now targeting to be the number two brand that's new to me. I think it suggests you're more confident in growth. Is that fair? Just, you know, how should we think through all that?

Curtis Smyser Nagle: Do we think about the gross profits prospects and timing and probability of hitting that.

Speaker Change #102: $1 billion plus in revenue.

Speaker Change #100: Performed in <unk> <unk> Guide ahead.

Speaker Change: The letter I think you said youre now targeting to be the number two brand that's new to me I think it suggests you're more confidence in growth is that fair or just how should we think of all that.

Gary Swidler: And just, you know, how should we think through all that? Yeah, thanks for the question. Look, I think that that's, you know, right, what you say, that our confidence in the Hinge platform has been increasing over the last little while, and I think, you know, most of that is really driven as we look at the user trends and the fact that, you know, Hinge continues to move up in the rankings in various countries and regions from a downloads perspective, which is telling us that the product really continues to resonate. It's a differentiated product.

Gary Swidler: Yeah, thanks for the question. Look, I think that's, you know, right what you say that our confidence in the Hinge platform has been increasing over the last while. And I think, you know, most of that is really driven as we look at the user trends and the fact that, you know, Hinge continues to move up in the rankings in various countries and regions from a down most perspective, which is telling us let the product really can use to resonate.

Speaker Change: Yes. Thanks for the question look I think that Thats right, what you say that our confidence in the hinge platform.

Speaker Change: Has been increasing over the last for a while and I think most of that is really driven as we look at the user trends and the fact that hinge continues to move up in the rankings in various countries and regions from a downloads perspective, which is telling us that the product really continues to resonate it's a dip.

Gary Swidler: It's a differentiated product. People really like using that product and continue to see it as a go-to product, and that's really having an effect on the overall dating landscape, as well as improving our confidence in the prospects for Hinge. So when we look at the ability for Hinge to be a $1 billion business in a few years, we absolutely think it's there and we're driving towards that. And, you know, something that I would just point out, which I'm not sure people fully appreciate, is that, you know, Hinge, which is on track to deliver, you know, well over $500 million of revenue this year, derives less than 10% of its revenue from its European expansion market.

Speaker Change: <unk> products people really like using that product and continue to see it as a go to product and that's really having effect on the overall dating landscape as well as improving our confidence in the prospects for him. So when we look at the ability for him to be a $1 billion business in a few years, we absolutely think it's it's there.

Gary Swidler: People really like using that product and continue to see it as a go-to product, and that's really having an effect on the overall dating landscape, as well as improving our confidence in the prospects for Hinge. So, when we look at the ability for Hinge to be a $1 billion business in a few years, we absolutely think it's there, and we're driving towards that. And, you know, something that I would just point out, which I'm not sure people fully appreciate, is that, you know, Hinge, which is on track to deliver well over $500 million in revenue this year, derives less than 10% of its revenue from its European expansion market.

Speaker Change #103: And we're driving towards that and something that I would just point out which I'm not sure people fully appreciate is at hand, which is on track to deliver well over $500 million of revenue. This year derived less than 10% of its revenue from its European expansion markets. So we've been spending a lot of money in those markets.

Gary Swidler: So we've been spending a lot of money in those markets to drive awareness. And that is clearly working, but the revenue has really just started to trickle in. And so, you know, it shows sort of the opportunity for us to have a much bigger business in Hinge in these European markets. And it also shows the nature of our business, which is we make these investments initially and plant the seeds, so to speak, and then we're going to harvest them, you know, down the road. And that's what's happening in Hinge, which obviously over time will be accretive to margins as well.

Speaker Change: To drive awareness.

Speaker Change: And that is clearly working but the revenue has really just started to trickle in and so it shows sort of the opportunity for us to have a much bigger business at hinge in these European markets and it also shows the nature of our business, which as we make these investments initially and plant the seeds. So to speak and then we're going to her.

Speaker Change: As them down the road and that's what's happening in hinge, which obviously overtime will be accretive to margins as well. So that is kind of the business that we're in planting the seeds for future harvesting hinge is a great example, we're about to start doing that at a Saar as well and we'll continue to do that where we see opportunities and that's what drives the future revenue growth.

Gary Swidler: And that's what's happening in Hinge, which, obviously, over time, will be accretive to margins as well. So, that is kind of the business that we're in, planting the seeds for future harvesting. Hinge is a great example.

Gary Swidler: So that is kind of the business that we're in, planting the seeds for future harvesting.

Gary Swidler: Hinge is a great example where Val has to start doing that at a czar as well, and we'll continue to do that where we see opportunities. And that's what drives the future revenue growth.

Speaker Change #101: So I'm going to leave it there just because we are out of time, but hopefully that mostly at least addresses your question and I will just thank everyone for having joined US. This morning. We appreciate everybody's time enjoy the rest of your summer and we'll talk to you all soon.

Gary Swidler: So I'm going to leave it there, just because we are out of time. But hopefully that mostly at least addresses your question.

Gary Swidler: And I'll just thank everyone for having joined us this morning. We appreciate everybody's time. Enjoy the rest of your summer. And we'll talk to you all soon. Thank you.

Operator: The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.

Speaker Change #104: The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.

Gary Swidler: We're about to start doing that at Azar as well, and we'll continue to do that where we see opportunities. And that's what drives future revenue growth. So I'm going to leave it there just because we are out of time, but hopefully that mostly at least addresses your question. And I'll just thank everyone for having joined us this morning. We appreciate everybody's time. Enjoy the rest of your summer, and we'll talk to you all soon. The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect. BF-WATCH TV 2021

Speaker Change: Okay.

Speaker Change: [music].