2023 Q3 Form 10-Q Financial Statement

#000089110323000099 Filed on August 03, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2
Revenue $881.6M $829.6M
YoY Change 8.9% 4.41%
Cost Of Revenue $255.6M $250.3M
YoY Change 3.5% 3.93%
Gross Profit $626.0M $579.3M
YoY Change 11.27% 4.62%
Gross Profit Margin 71.01% 69.83%
Selling, General & Admin $260.5M $244.3M
YoY Change 6.86% 3.38%
% of Gross Profit 41.61% 42.17%
Research & Development $94.14M $94.29M
YoY Change 7.12% 9.12%
% of Gross Profit 15.04% 16.28%
Depreciation & Amortization $17.31M $25.88M
YoY Change -14.67% 125.28%
% of Gross Profit 2.77% 4.47%
Operating Expenses $354.6M $364.5M
YoY Change 0.77% 12.93%
Operating Profit $243.6M $214.8M
YoY Change 15.63% -2230.7%
Interest Expense $40.38M -$39.74M
YoY Change -209.69% -211.56%
% of Operating Profit 16.58% -18.5%
Other Income/Expense, Net $7.905M $3.432M
YoY Change 239.85% -35.14%
Pretax Income $211.1M $178.5M
YoY Change 19.83% -541.65%
Income Tax $47.30M $41.14M
% Of Pretax Income 22.41% 23.05%
Net Earnings $163.8M $137.3M
YoY Change 27.24% -524.36%
Net Earnings / Revenue 18.57% 16.56%
Basic Earnings Per Share $0.59 $0.49
Diluted Earnings Per Share $0.57 $0.51
COMMON SHARES
Basic Shares Outstanding 278.1M shares 278.5M shares
Diluted Shares Outstanding 293.4M shares 295.0M shares

Balance Sheet

Concept 2023 Q3 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $712.8M $740.9M
YoY Change 78.95% 56.67%
Cash & Equivalents $706.9M $732.6M
Short-Term Investments $5.900M $8.349M
Other Short-Term Assets $117.4M $115.7M
YoY Change -11.6% -22.64%
Inventory
Prepaid Expenses
Receivables $288.1M $272.3M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.118B $1.129B
YoY Change 58.5% 40.27%
LONG-TERM ASSETS
Property, Plant & Equipment $190.7M $191.1M
YoY Change 10.73% 13.25%
Goodwill $2.268B $2.303B
YoY Change 3.55% 0.95%
Intangibles $310.7M $326.2M
YoY Change -29.24% -31.95%
Long-Term Investments
YoY Change
Other Assets $133.4M $389.6M
YoY Change -67.27% 161.21%
Total Long-Term Assets $3.131B $3.210B
YoY Change -2.44% -5.28%
TOTAL ASSETS
Total Short-Term Assets $1.118B $1.129B
Total Long-Term Assets $3.131B $3.210B
Total Assets $4.249B $4.339B
YoY Change 8.54% 3.46%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.30M $8.004M
YoY Change -23.51% -47.34%
Accrued Expenses $331.8M $282.2M
YoY Change 15.81% -4.19%
Deferred Revenue $227.0M $243.9M
YoY Change -11.4% -5.87%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $570.1M $534.2M
YoY Change -5.25% -14.9%
LONG-TERM LIABILITIES
Long-Term Debt $3.841B $3.839B
YoY Change 0.17% 0.17%
Other Long-Term Liabilities $99.18M $114.6M
YoY Change -18.4% 4.36%
Total Long-Term Liabilities $99.18M $3.954B
YoY Change -97.49% 3500.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $570.1M $534.2M
Total Long-Term Liabilities $99.18M $3.954B
Total Liabilities $669.3M $4.517B
YoY Change -85.49% 512.47%
SHAREHOLDERS EQUITY
Retained Earnings -$7.361B -$7.524B
YoY Change -6.44% -5.9%
Common Stock $8.455B $8.393B
YoY Change 2.91% 2.78%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$299.4M -$177.9M
YoY Change
Total Liabilities & Shareholders Equity $4.249B $4.339B
YoY Change 8.54% 3.46%

Cashflow Statement

Concept 2023 Q3 2023 Q2
OPERATING ACTIVITIES
Net Income $163.8M $137.3M
YoY Change 27.24% -524.36%
Depreciation, Depletion And Amortization $17.31M $25.88M
YoY Change -14.67% 125.28%
Cash From Operating Activities $290.8M $209.5M
YoY Change 3.68% -198.55%
INVESTING ACTIVITIES
Capital Expenditures $12.50M $17.61M
YoY Change -212.94% -282.57%
Acquisitions
YoY Change
Other Investing Activities $2.300M $36.00K
YoY Change -109.25% -102.98%
Cash From Investing Activities -$10.20M -$17.58M
YoY Change -71.6% 61.89%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -302.8M -28.81M
YoY Change -2.61% -86.83%
NET CHANGE
Cash From Operating Activities 290.8M 209.5M
Cash From Investing Activities -10.20M -17.58M
Cash From Financing Activities -302.8M -28.81M
Net Change In Cash -22.20M 163.1M
YoY Change -66.53% -136.88%
FREE CASH FLOW
Cash From Operating Activities $290.8M $209.5M
Capital Expenditures $12.50M $17.61M
Free Cash Flow $278.3M $191.9M
YoY Change -4.55% -194.56%

Facts In Submission

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<div style="margin-top:9pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Accounting Estimates</span></div><div style="margin-top:6pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Management of the Company is required to make certain estimates, judgments, and assumptions during the preparation of its consolidated financial statements in accordance with GAAP. These estimates, judgments, and assumptions impact the reported amounts of assets, liabilities, revenue, and expenses and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.</span></div><div style="margin-top:6pt;text-indent:24.75pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On an ongoing basis, the Company evaluates its estimates and judgments including those related to: the fair values of cash equivalents, the carrying value of accounts receivable, including the determination of the allowance for credit losses; the determination of revenue reserves; the carrying value of right-of-use assets; the useful lives and recoverability of definite-lived intangible assets and property and equipment; the recoverability of goodwill and indefinite-lived intangible assets; the fair value of equity securities without readily determinable fair values; contingencies; unrecognized tax benefits; the valuation allowance for deferred income tax assets; and the fair value of and forfeiture rates for stock-based awards, among others. The Company bases its estimates and judgments on historical experience, its forecasts and budgets, and other factors that the Company considers relevant.</span></div>
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<div style="margin-top:9pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Reclassifications</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior year amounts have been reclassified to conform to the current year presentation.</span></div>
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us-gaap Loss Contingency Disclosures
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<div style="margin-top:9pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">NOTE 8—CONTINGENCIES</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the ordinary course of business, the Company is a party to various lawsuits. The Company establishes reserves for specific legal matters when it determines that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable. Management has also identified certain other legal matters where we believe an unfavorable outcome is not probable and, therefore, no reserve is established. Although management currently believes that resolving claims against us, including claims where an unfavorable outcome is reasonably possible, will not have a material impact on the liquidity, results of operations, or financial condition of the Company, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. The Company also evaluates other contingent matters, including income and non-income tax contingencies, to assess the likelihood of an unfavorable outcome and estimated extent of potential loss. It is possible that an unfavorable outcome of one or more of these lawsuits or other contingencies could have a material impact on the liquidity, results of operations, or financial condition of the Company. See “Note 2—Income Taxes” for additional information related to income tax contingencies.</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The official names of legal proceedings in the descriptions below (shown in italics) reflect the original names of the parties when the proceedings were filed as opposed to the current names of the parties following the separation of Match Group and IAC.</span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">FTC Lawsuit Against Former Match Group</span></div><div style="margin-top:6pt;text-indent:22.5pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On September 25, 2019, the United States Federal Trade Commission (the “FTC”) filed a lawsuit in federal district court in Texas against Former Match Group. See </span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">FTC v. Match Group, Inc.</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">, No. 3:19:cv-02281-K (Northern District of Texas). The complaint alleges that, prior to mid-2018, for marketing purposes Match.com notified non-paying users that other users were attempting to communicate with them, even though Match.com had identified those subscriber accounts as potentially fraudulent, thereby inducing non-paying users to subscribe and exposing them to the risk of fraud should they subscribe. The complaint also challenges the adequacy of Match.com’s disclosure of the terms of its six-month guarantee, the efficacy of its cancellation process, and its handling of chargeback disputes. The complaint seeks among other things permanent injunctive relief, civil penalties, restitution, disgorgement, and costs of suit. On March 24, 2022, the court granted our motion to dismiss with prejudice on Claims I and II of the complaint relating to communication notifications and granted our motion to dismiss with respect to all requests for monetary damages on Claims III and IV relating to the guarantee offer and chargeback policy. On July 19, 2022, the FTC filed an amended complaint adding Match Group, LLC as a defendant. We believe that the FTC’s claims regarding Match.com’s practices, policies, and procedures are without merit and will defend vigorously against them.</span></div>
CY2023Q2 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
0 usd
CY2023Q2 mtch Numberof Lawsuitswith Possible Material Impact
NumberofLawsuitswithPossibleMaterialImpact
1 lawsuit

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