Match Group Hosts First Investor Day, Announces Initiation of Dividend, New Share Buyback Authorization
Rhea-AI Summary
Match Group (NASDAQ: MTCH) announced significant shareholder return initiatives during its inaugural Investor Day, including a new quarterly dividend program and share buyback authorization. The company will initiate a $0.19 quarterly dividend (approximately 2% annual yield), payable January 21, 2025, and authorized a $1.5 billion share buyback program.
The company plans to return at least 100% of free cash flow to shareholders over the next three years through dividends and buybacks, with at least 75% through the buyback program. For Q4 2024, Match Group expects to meet revenue targets excluding FX impacts but anticipates results below previous guidance when including approximately $15 million in larger-than-expected FX impacts. The company maintains its target for 36% Adjusted Operating Income margin for full-year 2024.
Positive
- New $0.19 quarterly dividend program initiated (~2% annual yield)
- New $1.5 billion share buyback authorization
- Commitment to return 100% of free cash flow to shareholders over next 3 years
- Maintaining 36% Adjusted Operating Income margin target for 2024
- YTD share repurchases of $753 million completed
Negative
- Q4 revenue expected below guidance due to $15 million FX impact
- Tinder's new user declines on Apple iOS remain at lower levels
- Foreign exchange headwinds affecting financial performance
News Market Reaction – MTCH
In the trading session that priced this news, MTCH declined 4.75%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company to Present Insight into Strategic Priorities, Vision for the Future, and Medium-Term Financial Outlook
Announces the Initiation of Quarterly Dividend of
A livestream of the event and presentation materials will be available starting at 9:00 a.m. Eastern Time (ET) today on the Match Group Investor Relations website: https://ir.mtch.com.
The day's sessions will include presentations from Match Group CEO Bernard Kim, President and CFO Gary Swidler, Chief Technology Officer Will Wu, and incoming CFO Steven Bailey, and will feature detailed presentations on Match Group's industry-leading portfolio of brands from their respective leaders, including Tinder CEO Faye Iosotaluno, Hinge CEO Justin McLeod, Evergreen & Emerging CEO Hesam Hosseini, and MG Asia CEO Malgosia Green, as well as a question and answer session.
"Match Group stands as the clear leader in our industry, powered by a diverse portfolio of iconic brands," said Bernard Kim. "Today, we're excited to showcase our strategy and vision to drive innovation – particularly through the use of AI and cutting-edge technology – to redefine dating and propel Match Group to its next chapter of growth. Our dividend announcement and additional buyback authorization underscore our confidence in the strength and durability of our business model and cash flow generation, and our commitment to delivering consistent, long-term value for shareholders."
Initiation of Quarterly Dividend Program; Authorization of Repurchase Program
Match Group has consistently prioritized returning capital to its shareholders in a predictable manner. The Company intends to return at least
The Company announced its Board of Directors has declared a cash dividend of
The Board of Directors also authorized the repurchase of up to an additional
Match Group's shares of common stock may be purchased on a discretionary basis from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means, including through Rule 10b5-1 trading plans. Share repurchases may be commenced, suspended, or discontinued at any time.
An Update on Q4 2024
Match Group is also providing an update on its financial outlook for Q4 2024 as part of Investor Day.
Excluding impact from foreign exchange (FX) rates, the Company expects to be within the Q4 Total Revenue range and the Tinder Direct Revenue range communicated on its Q3 earnings conference call. When the impact of FX rates is included, the Company expects Q4 Total Revenue and Tinder Direct Revenue to be below the outlook previously provided due to FX impacts that were approximately
Consistent with what the Company assumed in the Q4 outlook provided on its Q3 earnings call, Tinder's new user declines on Apple iOS remain stable at lower levels but have not fully recovered to the early September trend line.
Investor Day Details
On December 11, the Company will livestream the Investor Day presentation and question and answer session starting at 9:00 a.m. ET on ir.mtch.com. A replay of the conference and the presentation materials will be available on the Investor Relations website following the event.
Non-GAAP Financial Measures
Adjusted Operating Income is a supplemental measure to
About Match Group
Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Our global portfolio of brands includes Tinder®, Hinge®, Match®, Meetic®, OkCupid®, Pairs™, PlentyOfFish®, Azar®, BLK®, and more, each built to increase our users' likelihood of connecting with others. Through our trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that are not historical facts are "forward looking statements." The use of words such as "anticipates," "estimates," "expects," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: Match Group's future financial performance, Match Group's capital allocation plans and strategy, Match Group's business prospects and strategy, anticipated trends, and other similar matters. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: our ability to maintain or grow the size of our user base, competition, the limited operating history of some of our brands, our ability to attract users to our services through cost-effective marketing and related efforts, our ability to distribute our services through third parties and offset related fees, risks relating to our use of artificial intelligence, foreign currency exchange rate fluctuations, the integrity and scalability of our systems and infrastructure (and those of third parties) and our ability to adapt ours to changes in a timely and cost-effective manner, our ability to protect our systems from cyberattacks and to protect personal and confidential user information, risks relating to certain of our international operations and acquisitions, damage to our brands' reputations as a result of inappropriate actions by users of our services, uncertainties related to the tax treatment of our separation from IAC, uncertainties related to the acquisition of Hyperconnect, including, among other things, the expected benefits of the transaction and the impact of the transaction on the businesses of Match Group, and macroeconomic conditions. Certain of these and other risks and uncertainties are discussed in Match Group's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors that could also adversely affect Match Group's business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of Match Group management as of the date of this press release. Match Group does not undertake to update these forward-looking statements.
GAAP to Non-GAAP reconciliation (Dollars in millions) | |
For the year ended | |
Operating income | |
Stock-based compensation expense | 265 |
Depreciation and impairment and | 162 |
Adjusted Operating Income | |
Total Revenue | |
Operating income margin | 24 % |
Adjusted Operating Income margin | 36 % |
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SOURCE Match Group