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Match Group, Inc. Form 8-K Current Event Report Filed 2021-05-04

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Match Group, Inc. Form 8-K Current Event Report Filed 2021-05-04 SECURITIES AND EXCHANGE COMMISSION FORM 8-K Current report filing Filing Date: 2021-05-04 | Period of Report: 2021-05-04 SEC Accession No. 0000891103-21-000025 (HTML Version on secdatabase.com) FILER Match Group, Inc. Mailing Address Business Address 8750 NORTH CENTRAL 8750 NORTH CENTRAL CIK:891103| IRS No.: 592712887 | State of Incorp.:DE | Fiscal Year End: 1231 EXPRESSWAY EXPRESSWAY Type: 8-K | Act: 34 | File No.: 001-34148 | Film No.: 21888583 SUITE 1400 SUITE 1400 SIC: 7200 Personal services DALLAS TX 75231 DALLAS TX 75231 2145769352 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities changEx e Act of 1934 Date of Report (Date of earliest event reported): May 4, 2021 MATCH GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 001-34148 59-2712887 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 8750 North Central Expressway, Suite 1400 Dallas, TX 75231 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (214) 576-9352 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the egisr trant under any of the following provisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities egisr tered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol Name of exchange on which registered Common Stock, par value $0.001 MTCH The Nasdaq Stock Market LLC (Nasdaq Global Select Market) Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period orf complying with any new or revised financial accounting ts andards provided pursuant to Section 13(a) of the Exchange Act. ☐ Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Item 2.02. Results of Operations and Financial Condition. Item 7.01. Regulation FD Disclosure. On May 4, 2021, Match Group, Inc. (“Match Group”) published a shareholder letter, which included results for the quarter ended March 31, 2021. The full text of the shareholder letter, which is posted on the “Investor Relations” section of Match Group’s website at https://ir.mtch.com and appears in Exhibit 99.1 hereto, is incorporated herein by reference. Exhibit 99.1 is being furnished under both Item 2.02 “Results of Operations and Financial Condition” and Item 7.01 “Regulation FD Disclosure.” Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 99.1 Shareholder Letter of Match Group, Inc., dated May 4, 2021. 104 Inline XBRL for the cover page of this Current Report on Form 8-K Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATCH GROUP, INC. By: /s/ Gary Swidler Gary Swidler Chief Operating Officer and Chief Financial Officer Date: May 4, 2021 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Exhibit 99.1 Letter to Shareholders Q1 2021 | May 4, 2021 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Q1 2021 Financial Highlights • Total revenue grew 23% over the prior year quarter to • Tinder Direct Revenue grew 18% year-over-year, $668 million. driven by 15% Average Subscriber growth, and ARPU growth of 4%. • Operating income was $189 million, an increase of • 38% over the prior year quarter representing an Non-Tinder brands collectively grew Direct Revenue operating margin of 28%. 30% year-over-year, driven by ARPU growth of 18%; Average Subscriber growth of 8%; and contributions • Adjusted EBITDA was $230 million, an increase of from non-subscriber live streaming revenue. 32% over the prior year quarter representing an Adjusted EBITDA margin of 34%. • Year-to-date operating cash flow and free cash flow were $102 million and $92 million, respectively. • Average Subscribers increased 12% to 11.1 million, up from 9.9 million in the prior year quarter. • ARPU increased 9% over the prior year quarter to $0.64. See reconciliations of GAAP ot non-GAAP measures starting on page 18. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 2 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Dear Shareholders, As we head into summer, with a growing number of people getting vaccinated, we cannot help but be excited about the future. Dating platforms serve a fundamental need, but our ability to deliver on our mission is what truly sets us apart. Match Group’s mission is to spark meaningful connections for every single person worldwide. We bring products to life that enable singles to connect – regardless of gender identity, sexual orientation, geography, or relationship goals. Our portfolio of brands offers something for everyone. To us, inclusion means designing our platforms so everyone is welcomed as their authentic selves. Our global scale, diverse offerings, and the joyful connections we enable have enormous impact on societies. According to a Stanford University study, over 40% of all heterosexual marriages in the U.S. are now starting online. Outside the U.S., our market specific brands, such as Pairs™ and Meetic®, coupled with our global brands, such as Tinder® and OkCupid®, are having a dramatic impact on relationships, with a tremendous amount of runway still to go. Our services also play an important role in facilitating elar tionships for the LGBTQ+ community. We are leading on how safety is defined in our category and across social platforms, setting ambitious standards focused on keeping people emotionally well and physically safe. This year, we will spend more than $100 million on product, technology and moderation efforts related to trust and safety. Our focus is on investing in hiring top product and tech people, working with third-party experts who know the issues best and adding cutting edge capabilities to our platforms to foster secure and safe environments. Since hiring our experienced new Head of Safety six months ago, we have partnered with a social justice organization to review all our processes and responses to users, have announced a partnership with Garbo to make background checks available to our U.S. users and are extending our reach with law enforcement and policymakers. These are first-of-their-kind initiatives that will push the dating ac tegory forward. Fortunately, our brands continue to deliver stellar financial results. Exiting the first quarter, we are seeing improving trends across the portfolio. We are pleased with the way 2021 has begun and are optimistic that the rest of the year will continue this momentum. Looking forward to a summer of love, Shar Dubey Gary Swidler Chief Executive Officer Chief Operating Officer & Chief Financial Officer 3 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Business Trends A Year of Pandemic: Light at the End of the Tunnel In the first quarter, our total revenue grew 23% year-over-year, as the non-Tinder brands grew direct revenue 30% and Tinder reaccelerated to 18% growth. The graphic below illustrates the progress we have made over the past four quarters. Our business has continued to perform well despite the endless challenges from COVID-19 during the past year. In the early days of the pandemic, we saw first-time subscribers decline sequentially from February to March, before stabilizing in April. As we entered the summer months, propensity to pay rebounded across the portfolio, and first-time subscribers climbed amid reduced COVID cases. Exiting the summer season, our business proved resilient and maintained first-time subscriber levels well above the pre-COVID baseline, even as cases began to rise once again. In the fourth quarter, as the second wave of COVID cases and related lockdowns took hold, we faced new headwinds. But with the onset of the new year, we saw a seasonal spike in first-time subscribers that the business has been able to maintain. Exiting the first quarter, we are seeing a new normalization level as vaccines continue to roll out globally, even as several countries are experiencing a third wave of cases. While we are clearly not out of the woods, we are increasingly optimistic about our business momentum. Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document 4 Copyright © 2021 www.secdatabase.com. All Rights Reserved. Please Consider the Environment Before Printing This Document Tinder Reaccelerates Growth Among our brands, Tinder has the broadest geographic exposure and a higher portion of its revenue coming from non- recurring à la carte revenue.
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