Match Group (MTCH) Announces $1.5B Share Buyback

Today, Match Group (NASDAQ: MTCH) will host its inaugural Investor Day, with executives outlining the Company's strategic priorities and vision for the future, along with its medium-term financial outlook, capital allocation priorities, and total shareholder return algorithm. In conjunction with Investor Day, the Company announced initiatives to return capital to shareholders, including initiation of a cash dividend program and a new $1.5 billion share buyback authorization.

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 100% of free cash flow to its shareholders over the next three years through a combination of payment of a quarterly cash dividend and by continuing its share repurchase program.

The Company announced its Board of Directors has declared a cash dividend of $0.19 per share of outstanding common stock, payable on January 21, 2025 to shareholders of record as of the close of business on January 6, 2025. Going forward, the Company expects to declare a dividend in a similar amount on a quarterly basis, subject to market conditions and approval by the Board of Directors. Assuming a dividend of $0.19 per quarter for the fiscal year, this equates to a dividend of $0.76 annually, which at current share prices would imply a more than 2% annual dividend yield. The Company believes it has the capacity to increase the amount of the quarterly dividend in the future.

The Board of Directors also authorized the repurchase of up to an additional $1.5 billion in aggregate value of shares of Match Group common stock, which will take effect when the existing share repurchase authorization, of which $247 million in aggregate value of shares of Match Group common stock remains available, is exhausted. While repurchases during any quarter may vary depending on a number of factors, including market conditions, the Company expects to return at least 75% of free cash flow through its buyback program. Year to date, under its current authorization, the Company has repurchased $753 million of Match Group common stock and intends to resume its buybacks after it releases Q4 2024 earnings.

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 $15 million larger than anticipated at the time of our last earnings call, roughly two-thirds of which is attributable to Tinder. Match Group still expects to achieve an Adjusted Operating Income margin of 36% for the full year 2024.

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 U.S. generally accepted accounting principles (GAAP). A reconciliation to the most directly comparable measure under GAAP is attached to this press release. Adjusted Operating Income should be considered in addition to, and not a substitute for or superior to, the most directly comparable measure under GAAP.

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