Match Group (NASDAQ: MTCH) reported Q4 EPS of ($0.60), $1.13 worse than the analyst estimate of $0.53. Revenue for the quarter came in at $806 million versus the consensus estimate of $818.29 million.

GUIDANCE:

Match Group sees Q1 2022 revenue of $790-800 million, versus the consensus of $835.75 million.

• We expect Total Revenue of $790 million to $800 million, implying 18%-20% year-over-year growth, including the FX headwinds and Omicron impacts, which are particularly weighted in the first quarter. We expect Adjusted Operating Income of $260 million to $265 million, reflecting typically lower first quarter margins.

• Our 2022 Total Revenue outlook is for 15% to 20% year-over-year growth led by high-teens growth at Tinder and continued rapid growth at Hinge. That’s a slightly more conservative outlook than we previously provided, which is due to two macro headwinds: FX and COVID/Omicron. Our current outlook reflects approximately three points of negative impact on revenue growth versus our prior outlook due to these factors. Approximately $60 million (two points) of that is due to worsening FX impacts since our last update. The balance of the impact is from the rapid spread of the Omicron variant, which is affecting early 2022 performance.
• While the pandemic trajectory has been extremely difficult to predict, we are forecasting improved momentum as we move into the spring and summer months. The extent of the rebound -- will we finally get a ‘summer of love’ in 2022? -- could notably impact our overall 2022 year-over-year growth trajectory.
• We continue to expect slight (50-100bps) margin improvement ex-Hyperconnect, as a reduction in Google subscription fees and legal costs is partially reinvested in safety and CSR initiatives as well as headcount costs given the strong labor market. For the company as a whole, with a full year of Hyperconnect included, we expect to achieve a similar margin in 2022 as we did in 2021.
  

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