|
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the Quarterly Period Ended March 31, 2016
|
|
Or
|
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from__________to__________
|
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
|
26-4278917
(I.R.S. Employer
Identification No.)
|
8300 Douglas Avenue, Dallas, Texas 75225
(Address of registrant's principal executive offices)
|
||
(214) 576-9352
(Registrant's telephone number, including area code)
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
ý
(Do not check if a smaller
reporting company)
|
Smaller reporting company
o
|
|
|
Page
Number
|
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
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(In thousands, except share data)
|
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
135,898
|
|
|
$
|
88,173
|
|
Marketable securities
|
11,622
|
|
|
11,622
|
|
||
Accounts receivable, net of allowance of $1,476 and $1,739, respectively
|
68,975
|
|
|
65,851
|
|
||
Other current assets
|
40,395
|
|
|
39,049
|
|
||
Total current assets
|
256,890
|
|
|
204,695
|
|
||
Property and equipment, net of accumulated depreciation and amortization of $76,095 and $70,644, respectively
|
50,807
|
|
|
48,067
|
|
||
Goodwill
|
1,301,880
|
|
|
1,292,775
|
|
||
Intangible assets, net of accumulated amortization of $31,642 and $23,232, respectively
|
271,017
|
|
|
276,408
|
|
||
Long-term investments
|
54,855
|
|
|
55,569
|
|
||
Other non-current assets
|
29,435
|
|
|
31,878
|
|
||
TOTAL ASSETS
|
$
|
1,964,884
|
|
|
$
|
1,909,392
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
||||
LIABILITIES
|
|
|
|
||||
Current portion of long-term debt
|
$
|
40,000
|
|
|
$
|
40,000
|
|
Accounts payable
|
28,827
|
|
|
25,767
|
|
||
Deferred revenue
|
191,553
|
|
|
169,321
|
|
||
Accrued expenses and other current liabilities
|
122,418
|
|
|
118,556
|
|
||
Total current liabilities
|
382,798
|
|
|
353,644
|
|
||
Long-term debt, net of current maturities
|
1,167,897
|
|
|
1,176,871
|
|
||
Income taxes payable
|
9,325
|
|
|
9,670
|
|
||
Deferred income taxes
|
35,472
|
|
|
34,947
|
|
||
Other long-term liabilities
|
55,886
|
|
|
49,542
|
|
||
|
|
|
|
||||
Redeemable noncontrolling interests
|
5,971
|
|
|
5,907
|
|
||
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
||||
|
|
|
|
||||
SHAREHOLDERS' EQUITY
|
|
|
|
||||
Common stock; $0.001 par value; authorized 1,500,000,000 shares; 38,969,933 and 38,343,333 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively
|
39
|
|
|
38
|
|
||
Class B convertible common stock; $0.001 par value; authorized 1,500,000,000 shares; 209,919,402 shares issued and outstanding
|
210
|
|
|
210
|
|
||
Class C common stock; $0.001 par value; authorized 1,500,000,000 shares; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Preferred stock; $0.001 par value; authorized 500,000,000 shares; no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
418,852
|
|
|
404,771
|
|
||
Retained earnings
|
17,764
|
|
|
10,612
|
|
||
Accumulated other comprehensive loss
|
(129,330
|
)
|
|
(136,820
|
)
|
||
Total Match Group, Inc. shareholders' equity
|
307,535
|
|
|
278,811
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,964,884
|
|
|
$
|
1,909,392
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands, except per share data)
|
||||||
Revenue
|
$
|
285,283
|
|
|
$
|
235,069
|
|
Operating costs and expenses:
|
|
|
|
||||
Cost of revenue (exclusive of depreciation shown separately below)
|
53,677
|
|
|
38,953
|
|
||
Selling and marketing expense
|
113,495
|
|
|
111,965
|
|
||
General and administrative expense
|
51,321
|
|
|
29,738
|
|
||
Product development expense
|
22,863
|
|
|
16,451
|
|
||
Depreciation
|
6,487
|
|
|
7,045
|
|
||
Amortization of intangibles
|
8,252
|
|
|
3,877
|
|
||
Total operating costs and expenses
|
256,095
|
|
|
208,029
|
|
||
Operating income
|
29,188
|
|
|
27,040
|
|
||
Interest expense—third party
|
(20,431
|
)
|
|
—
|
|
||
Interest expense—related party
|
—
|
|
|
(2,179
|
)
|
||
Other income, net
|
3,607
|
|
|
9,307
|
|
||
Earnings before income taxes
|
12,364
|
|
|
34,168
|
|
||
Income tax provision
|
(5,145
|
)
|
|
(8,288
|
)
|
||
Net earnings
|
7,219
|
|
|
25,880
|
|
||
Net (earnings) loss attributable to noncontrolling interests
|
(67
|
)
|
|
326
|
|
||
Net earnings attributable to Match Group, Inc. shareholders
|
$
|
7,152
|
|
|
$
|
26,206
|
|
|
|
|
|
||||
Net earnings per share attributable to Match Group, Inc. shareholders:
|
|
|
|
||||
Basic
|
$
|
0.03
|
|
|
$
|
0.16
|
|
Diluted
|
$
|
0.03
|
|
|
$
|
0.16
|
|
|
|
|
|
||||
Stock-based compensation expense by function:
|
|
|
|
||||
Cost of revenue
|
$
|
402
|
|
|
$
|
86
|
|
Selling and marketing expense
|
938
|
|
|
933
|
|
||
General and administrative expense
|
10,197
|
|
|
4,253
|
|
||
Product development expense
|
5,961
|
|
|
1,027
|
|
||
Total stock-based compensation expense
|
$
|
17,498
|
|
|
$
|
6,299
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Net earnings
|
$
|
7,219
|
|
|
$
|
25,880
|
|
Other comprehensive income (loss):
|
|
|
|
||||
Change in foreign currency translation adjustment
|
7,487
|
|
|
(49,503
|
)
|
||
Change in fair value of available-for-sale security
|
—
|
|
|
515
|
|
||
Total other comprehensive income (loss)
|
7,487
|
|
|
(48,988
|
)
|
||
Comprehensive income (loss)
|
14,706
|
|
|
(23,108
|
)
|
||
Comprehensive (income) loss attributable to noncontrolling interests
|
(64
|
)
|
|
613
|
|
||
Comprehensive income (loss) attributable to Match Group, Inc. shareholders
|
$
|
14,642
|
|
|
$
|
(22,495
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
Common Stock
$0.001
Par Value
|
|
Class B Convertible Common Stock $0.001
Par Value
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Redeemable
Noncontrolling
Interests
|
|
|
$
|
|
Shares
|
|
$
|
|
Shares
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
Total
Shareholders'
Equity
|
||||||||||||||||
|
|
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Balance as of December 31, 2015
|
$
|
5,907
|
|
|
|
$
|
38
|
|
|
38,343
|
|
|
$
|
210
|
|
|
209,919
|
|
|
$
|
404,771
|
|
|
$
|
10,612
|
|
|
$
|
(136,820
|
)
|
|
$
|
278,811
|
|
Net earnings for the three months ended March 31, 2016
|
67
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,152
|
|
|
—
|
|
|
7,152
|
|
|||||||
Other comprehensive (loss) income, net of tax
|
(3
|
)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,490
|
|
|
7,490
|
|
|||||||
Stock-based compensation expense
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,605
|
|
|
—
|
|
|
—
|
|
|
15,605
|
|
|||||||
Issuance of common stock pursuant to stock-based awards, net of withholding taxes
|
—
|
|
|
|
1
|
|
|
627
|
|
|
—
|
|
|
—
|
|
|
(4,454
|
)
|
|
—
|
|
|
—
|
|
|
(4,453
|
)
|
|||||||
Income tax benefit related to stock-based awards
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,930
|
|
|
—
|
|
|
—
|
|
|
2,930
|
|
|||||||
Balance as of March 31, 2016
|
$
|
5,971
|
|
|
|
$
|
39
|
|
|
38,970
|
|
|
$
|
210
|
|
|
209,919
|
|
|
$
|
418,852
|
|
|
$
|
17,764
|
|
|
$
|
(129,330
|
)
|
|
$
|
307,535
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
7,219
|
|
|
$
|
25,880
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Stock-based compensation expense
|
17,498
|
|
|
6,299
|
|
||
Depreciation
|
6,487
|
|
|
7,045
|
|
||
Amortization of intangibles
|
8,252
|
|
|
3,877
|
|
||
Excess tax benefits from stock-based awards
|
(4,044
|
)
|
|
(12,835
|
)
|
||
Deferred income taxes
|
(159
|
)
|
|
595
|
|
||
Acquisition-related contingent consideration fair value adjustments
|
3,161
|
|
|
(11,011
|
)
|
||
Other adjustments, net
|
(242
|
)
|
|
(11,078
|
)
|
||
Changes in assets and liabilities, excluding effects of acquisitions:
|
|
|
|
||||
Accounts receivable
|
(2,234
|
)
|
|
(8,317
|
)
|
||
Other assets
|
(1,792
|
)
|
|
(1,968
|
)
|
||
Accounts payable and accrued expenses and other current liabilities
|
20,617
|
|
|
19,402
|
|
||
Income taxes payable
|
(707
|
)
|
|
4,588
|
|
||
Deferred revenue
|
20,911
|
|
|
17,487
|
|
||
Net cash provided by operating activities
|
74,967
|
|
|
39,964
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Acquisitions, net of cash acquired
|
(2,252
|
)
|
|
(3,809
|
)
|
||
Capital expenditures
|
(6,467
|
)
|
|
(4,344
|
)
|
||
Other, net
|
4,250
|
|
|
(405
|
)
|
||
Net cash used in investing activities
|
(4,469
|
)
|
|
(8,558
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Principal payment on long-term debt
|
(10,000
|
)
|
|
—
|
|
||
Issuance of Match Group common stock pursuant to stock-based awards, net of withholding taxes
|
(4,453
|
)
|
|
—
|
|
||
Excess tax benefits from stock-based awards
|
4,044
|
|
|
12,835
|
|
||
Transfers to IAC
|
—
|
|
|
(45,862
|
)
|
||
Purchase of noncontrolling interests
|
—
|
|
|
(308
|
)
|
||
Other, net
|
(12,180
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(22,589
|
)
|
|
(33,335
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(184
|
)
|
|
(6,016
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
47,725
|
|
|
(7,945
|
)
|
||
Cash and cash equivalents at beginning of period
|
88,173
|
|
|
127,630
|
|
||
Cash and cash equivalents at end of period
|
$
|
135,898
|
|
|
$
|
119,685
|
|
|
Three Months Ended
March 31, 2015
|
||
|
(In thousands, except
per share data)
|
||
|
|
||
Revenue
|
$
|
246,953
|
|
Net earnings attributable to Match Group, Inc. shareholders
|
$
|
26,991
|
|
Basic earnings per share attributable to Match Group, Inc. shareholders
|
$
|
0.13
|
|
Diluted earnings per share attributable to Match Group, Inc. shareholders
|
$
|
0.13
|
|
•
|
Level 1: Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets.
|
•
|
Level 2: Other inputs, which are observable directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs that are derived principally from or corroborated by observable market data.
|
•
|
Level 3: Unobservable inputs for which there is little or no market data and require the Company to develop its own assumptions, based on the best information available in the circumstances, about the assumptions market participants would use in pricing the assets or liabilities. See below for a discussion of fair value measurements made using Level 3 inputs.
|
|
March 31, 2016
|
||||||||||||||
|
Quoted Market
Prices in Active Markets for Identical Assets (Level 1) |
|
Significant Other Observable Inputs
(Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Fair Value Measurements |
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
4,041
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,041
|
|
Marketable securities:
|
|
|
|
|
|
|
|
||||||||
Equity security
|
11,622
|
|
|
—
|
|
|
—
|
|
|
11,622
|
|
||||
Total
|
$
|
15,663
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,663
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration arrangements
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(32,167
|
)
|
|
$
|
(32,167
|
)
|
|
December 31, 2015
|
||||||||||||||
|
Quoted Market
Prices in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) |
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
Fair Value
Measurements
|
||||||||
|
(In thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
$
|
3,649
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,649
|
|
Marketable securities:
|
|
|
|
|
|
|
|
||||||||
Equity security
|
11,622
|
|
|
—
|
|
|
—
|
|
|
11,622
|
|
||||
Total
|
$
|
15,271
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,271
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration arrangements
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(28,993
|
)
|
|
$
|
(28,993
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
Contingent
Consideration
Arrangements
|
|
Contingent
Consideration
Arrangements
|
||||
|
(In thousands)
|
||||||
Balance at January 1,
|
$
|
(28,993
|
)
|
|
$
|
(20,615
|
)
|
Total net (losses) gains:
|
|
|
|
||||
Fair value adjustments
|
(3,161
|
)
|
|
11,011
|
|
||
Foreign currency exchange gains
|
—
|
|
|
630
|
|
||
Included in other comprehensive (loss) income
|
(1,906
|
)
|
|
1,733
|
|
||
Fair value at date of acquisition
|
1,893
|
|
|
(363
|
)
|
||
Balance at March 31,
|
$
|
(32,167
|
)
|
|
$
|
(7,604
|
)
|
|
March 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Current maturities of long-term debt
|
$
|
(40,000
|
)
|
|
$
|
(40,375
|
)
|
|
$
|
(40,000
|
)
|
|
$
|
(39,850
|
)
|
Long-term debt, net of current maturities
|
(1,167,897
|
)
|
|
(1,210,554
|
)
|
|
(1,176,871
|
)
|
|
(1,204,548
|
)
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Term Loan, final payment due November 16, 2022
|
$
|
790,000
|
|
|
$
|
800,000
|
|
6.75% Senior Notes due December 15, 2022 (the "Match Group Senior Notes"); interest payable each June 15 and December 15, which commences June 15, 2016
|
445,172
|
|
|
445,172
|
|
||
Total long-term debt
|
$
|
1,235,172
|
|
|
$
|
1,245,172
|
|
Less: Current portion of long-term debt
|
40,000
|
|
|
40,000
|
|
||
Less: Net adjustment for remaining original issue discount on Term Loan and original issue premium related to the Match Exchange Offer
|
11,266
|
|
|
11,691
|
|
||
Less: Unamortized debt issuance costs
|
16,009
|
|
|
16,610
|
|
||
Total long-term debt, net of current maturities
|
$
|
1,167,897
|
|
|
$
|
1,176,871
|
|
|
Three Months Ended March 31, 2016
|
||||||||||
|
Foreign Currency Translation Adjustment
|
|
Unrealized Gain On Available-For-Sale Security
|
|
Accumulated Other Comprehensive (Loss) Income
|
||||||
|
(In thousands)
|
||||||||||
Balance at January 1,
|
$
|
(139,784
|
)
|
|
$
|
2,964
|
|
|
$
|
(136,820
|
)
|
Other comprehensive income
|
7,490
|
|
|
—
|
|
|
7,490
|
|
|||
Balance at March 31,
|
$
|
(132,294
|
)
|
|
$
|
2,964
|
|
|
$
|
(129,330
|
)
|
|
Three Months Ended March 31, 2015
|
||||||||||
|
Foreign Currency Translation Adjustment
|
|
Unrealized (Loss) Gain On Available-For-Sale Security
|
|
Accumulated Other Comprehensive Loss
|
||||||
|
(In thousands)
|
||||||||||
Balance at January 1,
|
$
|
(76,800
|
)
|
|
$
|
(1,248
|
)
|
|
$
|
(78,048
|
)
|
Other comprehensive (loss) income
|
(49,216
|
)
|
|
515
|
|
|
(48,701
|
)
|
|||
Balance at March 31,
|
$
|
(126,016
|
)
|
|
$
|
(733
|
)
|
|
$
|
(126,749
|
)
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
|
(In thousands, except per share data)
|
||||||||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
$
|
7,219
|
|
|
$
|
7,219
|
|
|
$
|
25,880
|
|
|
$
|
25,880
|
|
Net (earnings) loss attributable to noncontrolling interests
|
(67
|
)
|
|
(67
|
)
|
|
326
|
|
|
326
|
|
||||
Net earnings attributable to Match Group, Inc. shareholders
|
$
|
7,152
|
|
|
$
|
7,152
|
|
|
$
|
26,206
|
|
|
$
|
26,206
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
248,444
|
|
|
248,444
|
|
|
161,130
|
|
|
161,130
|
|
||||
Dilutive securities including subsidiary denominated equity, stock options and RSU awards
(a)
|
—
|
|
|
19,655
|
|
|
—
|
|
|
7,798
|
|
||||
Dilutive weighted average common shares outstanding
|
248,444
|
|
|
268,099
|
|
|
161,130
|
|
|
168,928
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to Match Group, Inc. shareholders:
|
|
|
|
|
|
|
|||||||||
Earnings per share
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.16
|
|
|
$
|
0.16
|
|
(a)
|
If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of subsidiary denominated equity, stock options or vesting of restricted stock units ("RSUs"). For the three months ended March 31, 2016 and 2015,
21.8 million
and less than
0.1 million
potentially dilutive securities, respectively, are excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Revenue:
|
|
|
|
||||
Dating
|
$
|
260,401
|
|
|
$
|
210,147
|
|
Non-dating
|
24,882
|
|
|
24,922
|
|
||
Total
|
$
|
285,283
|
|
|
$
|
235,069
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Operating Income (Loss):
|
|
|
|
||||
Dating
|
$
|
34,186
|
|
|
$
|
36,065
|
|
Non-dating
|
(4,998
|
)
|
|
(9,025
|
)
|
||
Total
|
$
|
29,188
|
|
|
$
|
27,040
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Revenue
|
|
|
|
||||
United States
|
$
|
187,863
|
|
|
$
|
162,339
|
|
All other countries
|
97,420
|
|
|
72,730
|
|
||
Total
|
$
|
285,283
|
|
|
$
|
235,069
|
|
|
Three Months Ended March 31, 2016
|
||||||||||||||||||||||
|
Adjusted EBITDA
|
|
Stock-based compensation
|
|
Depreciation
|
|
Amortization
of Intangibles |
|
Acquisition-related Contingent Consideration Fair Value Adjustments
|
|
Operating
Income (Loss) |
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Dating
|
$
|
67,274
|
|
|
$
|
(17,448
|
)
|
|
$
|
(5,751
|
)
|
|
$
|
(6,728
|
)
|
|
$
|
(3,161
|
)
|
|
$
|
34,186
|
|
Non-dating
|
(2,688
|
)
|
|
(50
|
)
|
|
(736
|
)
|
|
(1,524
|
)
|
|
—
|
|
|
(4,998
|
)
|
||||||
Total
|
$
|
64,586
|
|
|
$
|
(17,498
|
)
|
|
$
|
(6,487
|
)
|
|
$
|
(8,252
|
)
|
|
$
|
(3,161
|
)
|
|
29,188
|
|
|
Interest expense—third party
|
|
(20,431
|
)
|
||||||||||||||||||||
Other income, net
|
|
3,607
|
|
||||||||||||||||||||
Earnings before income taxes
|
|
12,364
|
|
||||||||||||||||||||
Income tax provision
|
|
(5,145
|
)
|
||||||||||||||||||||
Net earnings
|
|
7,219
|
|
||||||||||||||||||||
Net earnings attributable to noncontrolling interests
|
|
(67
|
)
|
||||||||||||||||||||
Net earnings attributable to Match Group, Inc. shareholders
|
|
$
|
7,152
|
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||||||||
|
Adjusted EBITDA
|
|
Stock-based compensation
|
|
Depreciation
|
|
Amortization
of Intangibles
|
|
Acquisition-related Contingent Consideration Fair Value Adjustments
|
|
Operating
Income
(Loss)
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Dating
|
$
|
37,864
|
|
|
$
|
(6,010
|
)
|
|
$
|
(4,589
|
)
|
|
$
|
(2,211
|
)
|
|
$
|
11,011
|
|
|
$
|
36,065
|
|
Non-dating
|
(4,614
|
)
|
|
(289
|
)
|
|
(2,456
|
)
|
|
(1,666
|
)
|
|
—
|
|
|
(9,025
|
)
|
||||||
Total
|
$
|
33,250
|
|
|
$
|
(6,299
|
)
|
|
$
|
(7,045
|
)
|
|
$
|
(3,877
|
)
|
|
$
|
11,011
|
|
|
27,040
|
|
|
Interest expense—related party
|
|
(2,179
|
)
|
||||||||||||||||||||
Other income, net
|
|
9,307
|
|
||||||||||||||||||||
Earnings before income taxes
|
|
34,168
|
|
||||||||||||||||||||
Income tax provision
|
|
(8,288
|
)
|
||||||||||||||||||||
Net earnings
|
|
25,880
|
|
||||||||||||||||||||
Net loss attributable to noncontrolling interests
|
|
326
|
|
||||||||||||||||||||
Net earnings attributable to Match Group, Inc. shareholders
|
|
$
|
26,206
|
|
|
Three Months Ended March 31, 2016
|
||||||||||
|
Severance
|
|
Professional Fees & Other
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Accrual as of January 1,
|
$
|
3,013
|
|
|
$
|
564
|
|
|
$
|
3,577
|
|
Charges incurred
|
201
|
|
|
1,888
|
|
|
2,089
|
|
|||
Payments made
|
(831
|
)
|
|
(1,706
|
)
|
|
(2,537
|
)
|
|||
Accrual as of March 31,
|
$
|
2,383
|
|
|
$
|
746
|
|
|
$
|
3,129
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Cost of revenue
|
$
|
154
|
|
|
$
|
668
|
|
Selling and marketing expense
|
96
|
|
|
390
|
|
||
General and administrative expense
|
721
|
|
|
1,644
|
|
||
Product development expense
|
1,118
|
|
|
601
|
|
||
Total
|
$
|
2,089
|
|
|
$
|
3,303
|
|
•
|
Reportable Segments
|
•
|
Dating
- consists of all of our dating businesses globally.
|
•
|
Non-dating
- consists of The Princeton Review.
|
•
|
Dating North America
- consists of the financial results of our Dating businesses for customers located in the United States and Canada.
|
•
|
Dating International
- consists of the financial results of our Dating businesses for customers located outside of the United States and Canada.
|
•
|
Direct Revenue
- is revenue that is directly received from an end user of our products.
|
•
|
Indirect Revenue
- is revenue that is not received directly from an end user of our products, substantially all of which is currently advertising revenue.
|
•
|
Average PMC
- is calculated by summing the number of paid members, or paid member count ("PMC") at the end of each day in the relevant measurement period and dividing it by the number of calendar days in that period. PMC as of any given time represents the number of users with a paid membership at that time. Users who purchase à la carte features from us do not qualify as paid members for purposes of PMC by virtue of such purchase, though often such purchasers are also paid members.
|
•
|
Average Revenue Per Paying User ("ARPPU")
- is Direct Revenue in the relevant measurement period divided by the Average PMC in such period divided by the number of calendar days in such period.
|
•
|
Cost of revenue -
consists primarily of compensation (including stock-based compensation) and other employee-related costs for personnel engaged in data center and customer care functions, in-app purchase fees, credit card processing fees, hosting fees, content acquisition costs, and data center rent, energy and bandwidth costs. In-app purchase fees are monies paid to Apple and Google for the distribution and facilitation of in-app purchase of product features. Content acquisition cost consists principally of payments made to tutors at The Princeton Review.
|
•
|
Selling and marketing expense -
consists primarily of advertising expenditures and compensation (including stock-based compensation) and other employee-related costs for personnel engaged in selling and marketing, and sales support functions. Advertising expenditures includes online marketing, including fees paid to search engines, offline marketing, which is primarily television advertising and partner-related payments to those who direct traffic to our brands.
|
•
|
General and administrative expense -
consists primarily of compensation (including stock-based compensation) and other employee-related costs for personnel engaged in executive management, finance, legal, tax and human resources, fees for professional services and facilities costs.
|
•
|
Product development expense -
consists primarily of compensation (including stock-based compensation) and other employee-related costs that are not capitalized for personnel engaged in the design, development, testing and enhancement of product offerings and related technology.
|
•
|
Match Group Senior Notes
- The Company's 6.75% Senior Notes due December 15, 2022, with interest payable each June 15 and December 15; which were issued on November 16, 2015 in exchange for IAC's 4.75% Senior Notes due December 15, 2022 ("2012 Senior Notes").
|
•
|
Term Loan
- The Company's $800 million, seven year term loan entered into on November 16, 2015. On March 31, 2016, a $10 million principal payment was made.
|
|
Three Months Ended March 31,
|
|||||||||||||
|
2016
|
|
Change
|
|
% Change
|
|
2015
|
|||||||
|
(Dollars in thousands, except ARPPU)
|
|||||||||||||
Direct Revenue:
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
164,382
|
|
|
$
|
25,860
|
|
|
19
|
%
|
|
$
|
138,522
|
|
International
|
84,646
|
|
|
21,282
|
|
|
34
|
%
|
|
63,364
|
|
|||
Total Direct Revenue
|
249,028
|
|
|
47,142
|
|
|
23
|
%
|
|
201,886
|
|
|||
Indirect Revenue
|
11,373
|
|
|
3,112
|
|
|
38
|
%
|
|
8,261
|
|
|||
Total Dating Revenue
|
260,401
|
|
|
50,254
|
|
|
24
|
%
|
|
210,147
|
|
|||
Non-dating Revenue
|
24,882
|
|
|
(40
|
)
|
|
—
|
%
|
|
24,922
|
|
|||
Total Revenue
|
$
|
285,283
|
|
|
$
|
50,214
|
|
|
21
|
%
|
|
$
|
235,069
|
|
|
|
|
|
|
|
|
|
|||||||
Percentage of Total Revenue:
|
|
|
|
|
|
|
||||||||
Direct Revenue:
|
|
|
|
|
|
|
|
|||||||
North America
|
58
|
%
|
|
|
|
|
|
59
|
%
|
|||||
International
|
30
|
%
|
|
|
|
|
|
27
|
%
|
|||||
Total Direct Revenue
|
88
|
%
|
|
|
|
|
|
86
|
%
|
|||||
Indirect Revenue
|
3
|
%
|
|
|
|
|
|
3
|
%
|
|||||
Total Dating Revenue
|
91
|
%
|
|
|
|
|
|
89
|
%
|
|||||
Non-dating Revenue
|
9
|
%
|
|
|
|
|
|
11
|
%
|
|||||
Total Revenue
|
100
|
%
|
|
|
|
|
|
100
|
%
|
|||||
|
|
|
|
|
|
|
|
|||||||
Average PMC:
|
|
|
|
|
|
|
|
|||||||
North America
|
3,221
|
|
|
668
|
|
|
26
|
%
|
|
2,553
|
|
|||
International
|
1,862
|
|
|
683
|
|
|
58
|
%
|
|
1,179
|
|
|||
Total
|
5,083
|
|
|
1,351
|
|
|
36
|
%
|
|
3,732
|
|
|||
|
|
|
|
|
|
|
|
|||||||
ARPPU:
|
|
|
|
|
|
|
|
|||||||
North America
|
$
|
0.56
|
|
|
$
|
(0.04
|
)
|
|
(7
|
)%
|
|
$
|
0.60
|
|
International
|
$
|
0.50
|
|
|
$
|
(0.10
|
)
|
|
(16
|
)%
|
|
$
|
0.60
|
|
Total
|
$
|
0.54
|
|
|
$
|
(0.06
|
)
|
|
(10
|
)%
|
|
$
|
0.60
|
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Cost of revenue
|
$53,677
|
|
$14,724
|
|
38%
|
|
$38,953
|
Percentage of revenue
|
19%
|
|
|
|
|
|
17%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Selling and marketing expense
|
$113,495
|
|
$1,530
|
|
1%
|
|
$111,965
|
Percentage of revenue
|
40%
|
|
|
|
|
|
48%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
General and administrative expense
|
$51,321
|
|
$21,583
|
|
73%
|
|
$29,738
|
Percentage of revenue
|
18%
|
|
|
|
|
|
13%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Product development expense
|
$22,863
|
|
$6,412
|
|
39%
|
|
$16,451
|
Percentage of revenue
|
8%
|
|
|
|
|
|
7%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Depreciation
|
$6,487
|
|
$(558)
|
|
(8)%
|
|
$7,045
|
Percentage of revenue
|
2%
|
|
|
|
|
|
3%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Adjusted EBITDA
|
$64,586
|
|
$31,336
|
|
94%
|
|
$33,250
|
Percentage of revenue
|
23%
|
|
|
|
|
|
14%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Operating income
|
$29,188
|
|
$2,148
|
|
8%
|
|
$27,040
|
Percentage of revenue
|
10%
|
|
|
|
|
|
12%
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Interest expense—third party
|
$(20,431)
|
|
$(20,431)
|
|
NA
|
|
$—
|
Interest expense—related party
|
—
|
|
2,179
|
|
NA
|
|
(2,179)
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Other income, net
|
$3,607
|
|
$(5,700)
|
|
(61)%
|
|
$9,307
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
$ Change
|
|
% Change
|
|
2015
|
|
(Dollars in thousands)
|
||||||
Income tax provision
|
$(5,145)
|
|
NM
|
|
NM
|
|
$(8,288)
|
Effective income tax rate
|
42%
|
|
|
|
|
|
24%
|
|
March 31, 2016
|
|
December 31, 2015
|
||||
|
(In thousands)
|
||||||
Cash and cash equivalents:
|
|
|
|
||||
United States
(1)
|
$
|
50,575
|
|
|
$
|
34,422
|
|
All other countries
(2)
|
85,323
|
|
|
53,751
|
|
||
Total cash and cash equivalents
|
135,898
|
|
|
88,173
|
|
||
Marketable equity security (United States)
|
11,622
|
|
|
11,622
|
|
||
Total cash and cash equivalents and marketable securities
|
$
|
147,520
|
|
|
$
|
99,795
|
|
|
|
|
|
||||
Long-term debt:
|
|
|
|
||||
Term Loan, final payment due November 16, 2022
(3)
|
$
|
790,000
|
|
|
$
|
800,000
|
|
Match Group Senior Notes due December 15, 2022
|
445,172
|
|
|
445,172
|
|
||
Total long-term debt
|
1,235,172
|
|
|
1,245,172
|
|
||
Less: Current portion of long-term debt
|
40,000
|
|
|
40,000
|
|
||
Less: Unamortized original issue discount and original issue premium, net
|
11,266
|
|
|
11,691
|
|
||
Less: Unamortized debt issuance costs
|
16,009
|
|
|
16,610
|
|
||
Total long-term debt, net of current maturities
|
$
|
1,167,897
|
|
|
$
|
1,176,871
|
|
(1)
|
Domestically, the entire balance reflects cash deposits held in financial institutions.
|
(2)
|
Internationally, there is
$4.0 million
of cash equivalents, at March 31, 2016, which consist of money market funds; the balance reflects cash deposits held in financial institutions. If needed for our U.S. operations, most of the cash and cash equivalents held by the Company's foreign subsidiaries could be repatriated, which, under current tax law, would be subject to U.S. federal and state income taxes. We currently do not anticipate a need to repatriate these funds to finance our U.S. operations and it is our intent to indefinitely reinvest these funds outside of the U.S.; therefore, we have not provided for any U.S. income taxes related to these funds.
|
(3)
|
Principal payments of
$10 million
under the Term Loan are due quarterly through maturity, at which point a final principal payment of
$530 million
will become due.
|
|
Three Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Net cash provided by operating activities
|
$
|
74,967
|
|
|
$
|
39,964
|
|
Net cash used in investing activities
|
(4,469
|
)
|
|
(8,558
|
)
|
||
Net cash used in financing activities
|
(22,589
|
)
|
|
(33,335
|
)
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
(a)
|
Less Than
1 Year
|
|
1–3
Years
|
|
3–5
Years
|
|
More Than
5 Years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Long-term debt
(b)
|
$
|
116,073
|
|
|
$
|
220,371
|
|
|
$
|
211,546
|
|
|
$
|
1,150,255
|
|
|
$
|
1,698,245
|
|
Operating leases
(c)
|
10,196
|
|
|
19,952
|
|
|
10,143
|
|
|
18,841
|
|
|
59,132
|
|
|||||
Purchase obligations
(d)
|
10,000
|
|
|
20,000
|
|
|
—
|
|
|
—
|
|
|
30,000
|
|
|||||
Total contractual obligations
|
$
|
136,269
|
|
|
$
|
260,323
|
|
|
$
|
221,689
|
|
|
$
|
1,169,096
|
|
|
$
|
1,787,377
|
|
(a)
|
The Company has excluded $25.9 million in unrecognized tax benefits and related interest from the table above as we are unable to make a reasonably reliable estimate of the period in which these liabilities might be paid. For additional information on income taxes, see Note 2 to the consolidated and combined financial statements.
|
(b)
|
Represents contractual amounts due including interest. Long-term debt at March 31, 2016 consists of Match Group Senior Notes of $445 million, which bears interest at a fixed rate, and the Term Loan of $790 million, which bears interest at a variable rate. The Term Loan currently bears interest at LIBOR plus 4.50%, with a LIBOR floor of 1.00%. The amount of interest ultimately paid on the Term Loan may differ based on future changes in interest rates.
|
(c)
|
The Company leases office space, data center facilities and equipment used in connection with its operations under various operating leases, many of which contain escalation clauses. In addition, future minimum lease payments include our allocable share of an IAC data center lease.
|
(d)
|
The purchase obligations include web hosting commitments.
|
10.1
|
|
|
|
Amendment No. 1 to the Employee Matters Agreement, dated as of April 13, 2016, by and between Match Group, Inc. and IAC/InterActiveCorp.(1)
|
|
|
10.2
|
|
|
|
Advisory Agreement, dated as of January 1, 2016, by and between Match Group, Inc. and Sam Yagan.(1)(2)
|
|
|
31.1
|
|
|
|
Certification of the Chairman and Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.(1)
|
|
|
31.2
|
|
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.(1)
|
|
|
32.1
|
|
|
|
Certification of the Chairman and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(3)
|
|
|
32.2
|
|
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(3)
|
|
|
101.INS
|
|
XBRL Instance
|
|
|
||
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
||
101.CAL
|
|
XBRL Taxonomy Extension Calculation
|
|
|
||
101.DEF
|
|
XBRL Taxonomy Extension Definition
|
|
|
||
101.LAB
|
|
XBRL Taxonomy Extension Labels
|
|
|
||
101.PRE
|
|
XBRL Taxonomy Extension Presentation
|
|
|
(1)
|
Filed herewith.
|
(2)
|
Reflects management contracts and management and director compensatory plans.
|
(3)
|
Furnished herewith.
|
May 10, 2016
|
|
MATCH GROUP, INC.
|
||
|
|
By:
|
|
/s/ GARY SWIDLER
|
|
|
|
|
Gary Swidler
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
Signature
|
Title
|
|
Date
|
|
|
|
|
/s/ GARY SWIDLER
|
Chief Financial Officer
|
|
May 10, 2016
|
Gary Swidler
|
|
|
|
MATCH GROUP, INC. CONSOLIDATED AND COMBINED STATEMENT OF COMPREHENSIVE OPERATIONS (Unaudited)
|
1.
|
Payroll Taxes and Reporting of Compensation
. Section 4.6 of the Employee Matters Agreement is hereby amended and restated as follows:
|
2.
|
Certain Equity Award Matters
. Section 5.5 of the Employee Matters Agreement is hereby amended and restated as follows:
|
3.
|
Miscellaneous.
This Amendment Number One, together with the Employee Matters Agreement, constitutes the sole and complete understanding of the parties with respect to its subject matter and supersedes all prior or contemporaneous communications between the parties concerning such subject matter. Following the Amendment Number One Effective Date, the Agreement (as amended) remains in full force and effect. This Amendment Number One may be executed in counterparts, including facsimile counterparts, each of which will constitute an original, but which collectively will form one and the same instrument. This Amendment Number One will be governed and construed according to the choice of governing and constructive law set forth in the Employee Matters Agreement.
|
IAC/INTERACTIVECORP
|
MATCH GROUP, INC.
|
2.
|
TERM AND TERMINATION
. The term of this Agreement shall be one (1) year, unless earlier terminated by either party by written notice given at least thirty (30) calendar days before the desired termination date (the “Term”) or extended by written agreement of the parties.
|
If to the Company:
|
Match Group, Inc.
|
If to Advisor:
|
At the most recent address for Advisor on file at the Company.
|
10.
|
SECTION 409A OF THE INTERNAL REVENUE CODE
.
|
11.
|
HEADING REFERENCES
. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
|
Date: January 1, 2016
|
|
MATCH GROUP, INC.
|
||
|
|
|
|
/s/ Gregory Blatt
|
|
|
By:
|
|
Gregory R. Blatt
|
|
|
Title:
|
|
Chief Financial Officer
|
|
|
ADVISOR
|
||
|
|
|
|
/s/ Sam Yagan
|
|
|
Sam Yagan
|
4.
|
NON-SOLICITATION OF BUSINESS PARTNERS
. During the Term for so long as the Company is making bi-weekly advisory fee installment payments to Advisor, Advisor shall not, without the prior written consent of the Company, persuade or encourage any business partners or business affiliates of: (i) the Company and/or (ii) any of its subsidiaries and/or affiliates with whom Advisor had/has direct contact during his previous employment with the Company and the Term, in each case, to cease doing business with the Company and/or any of its subsidiaries and/or affiliates or to engage in any business competitive with the Company and/or its subsidiaries and/or affiliates.
|
# of Stock Options to
Vest at 1/1/16
|
Grant Date
|
Exercise Price
|
620,986
|
2/11/14
|
$11.06
|
407,701
|
2/11/15
|
$13.97
|
271,801*
|
2/11/15
|
$13.97
|
# of Vested Stock Options
Outstanding at 1/1/16
|
Grant Date
|
Exercise Price
|
1,705,985
|
6/8/11
|
$6.99
|
1,514,567
|
12/17/12
|
$8.20
|
748,175
|
2/11/14
|
$11.06
|
(c)
|
YOU AGREE WITH EVERYTHING IN THIS GENERAL RELEASE;
|
|
/s/ Sam Yagan
|
Sam Yagan
|
|
Date: January 1, 2016
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended
March 31, 2016
of Match Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
c)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
May 10, 2016
|
|
/s/ GREGORY R. BLATT
|
|
|
|
Gregory R. Blatt
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended
March 31, 2016
of Match Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
c)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
May 10, 2016
|
|
/s/ GARY SWIDLER
|
|
|
|
Gary Swidler
Chief Financial Officer
|
(1)
|
the Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2016
of Match Group, Inc. (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Match Group, Inc.
|
Dated:
|
May 10, 2016
|
|
/s/ GREGORY R. BLATT
|
|
|
|
Gregory R. Blatt
Chairman and Chief Executive Officer
|
(1)
|
the Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2016
of Match Group, Inc. (the "Report") which this statement accompanies fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Match Group, Inc.
|
Dated:
|
May 10, 2016
|
|
/s/ GARY SWIDLER
|
|
|
|
Gary Swidler
Chief Financial Officer
|