2024 Q3 Form 10-Q Financial Statement

#000089110324000095 Filed on August 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2
Revenue $895.5M $864.1M
YoY Change 1.57% 4.16%
Cost Of Revenue $253.1M $245.0M
YoY Change -0.97% -2.12%
Gross Profit $642.4M $619.1M
YoY Change 2.61% 6.87%
Gross Profit Margin 71.73% 71.65%
Selling, General & Admin $260.6M $268.9M
YoY Change 0.03% 10.08%
% of Gross Profit 40.57% 43.44%
Research & Development $103.7M $113.6M
YoY Change 10.18% 20.46%
% of Gross Profit 16.15% 18.35%
Depreciation & Amortization $25.30M $21.09M
YoY Change 46.17% -18.5%
% of Gross Profit 3.94% 3.41%
Operating Expenses $364.3M $382.5M
YoY Change 2.72% 4.95%
Operating Profit $210.7M $204.5M
YoY Change -13.51% -4.78%
Interest Expense -$32.82M -$40.04M
YoY Change -181.28% 0.74%
% of Operating Profit -15.58% -19.58%
Other Income/Expense, Net $7.100M $10.53M
YoY Change -10.18% 206.67%
Pretax Income $177.6M $175.0M
YoY Change -15.84% -1.95%
Income Tax $41.20M $41.70M
% Of Pretax Income 23.19% 23.83%
Net Earnings $136.5M $133.3M
YoY Change -16.66% -2.93%
Net Earnings / Revenue 15.24% 15.43%
Basic Earnings Per Share $0.53 $0.50
Diluted Earnings Per Share $0.51 $0.48
COMMON SHARES
Basic Shares Outstanding 257.9M shares 265.7M shares
Diluted Shares Outstanding 275.7M shares 281.9M shares

Balance Sheet

Concept 2024 Q3 2024 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $860.9M $843.6M
YoY Change 20.77% 13.86%
Cash & Equivalents $855.5M $837.8M
Short-Term Investments $5.323M $5.812M
Other Short-Term Assets $121.8M $118.0M
YoY Change 3.74% 2.02%
Inventory
Prepaid Expenses
Receivables $340.1M $324.3M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.323B $1.286B
YoY Change 18.28% 13.91%
LONG-TERM ASSETS
Property, Plant & Equipment $172.1M $181.1M
YoY Change -9.73% -5.23%
Goodwill $2.320B $2.255B
YoY Change 2.29% -2.08%
Intangibles $241.2M $275.7M
YoY Change -22.36% -15.48%
Long-Term Investments
YoY Change
Other Assets $127.5M $135.6M
YoY Change -4.46% -65.19%
Total Long-Term Assets $3.103B $3.083B
YoY Change -0.88% -3.96%
TOTAL ASSETS
Total Short-Term Assets $1.323B $1.286B
Total Long-Term Assets $3.103B $3.083B
Total Assets $4.426B $4.369B
YoY Change 4.16% 0.69%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $27.35M $17.22M
YoY Change 142.04% 115.18%
Accrued Expenses $321.5M $308.0M
YoY Change -3.1% 9.15%
Deferred Revenue $181.4M $187.1M
YoY Change -20.09% -23.29%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $530.3M $512.3M
YoY Change -6.99% -4.09%
LONG-TERM LIABILITIES
Long-Term Debt $3.847B $3.846B
YoY Change 0.17% 0.17%
Other Long-Term Liabilities $92.63M $96.96M
YoY Change -6.6% -15.4%
Total Long-Term Liabilities $92.63M $96.96M
YoY Change -6.6% -97.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $530.3M $512.3M
Total Long-Term Liabilities $92.63M $96.96M
Total Liabilities $622.9M $609.3M
YoY Change -6.93% -86.51%
SHAREHOLDERS EQUITY
Retained Earnings -$6.738B -$6.875B
YoY Change -8.46% -8.64%
Common Stock $8.730B $8.663B
YoY Change 3.25% 3.22%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$88.53M -$130.2M
YoY Change
Total Liabilities & Shareholders Equity $4.426B $4.369B
YoY Change 4.16% 0.69%

Cashflow Statement

Concept 2024 Q3 2024 Q2
OPERATING ACTIVITIES
Net Income $136.5M $133.3M
YoY Change -16.66% -2.93%
Depreciation, Depletion And Amortization $25.30M $21.09M
YoY Change 46.17% -18.5%
Cash From Operating Activities $264.9M $129.0M
YoY Change -8.89% -38.44%
INVESTING ACTIVITIES
Capital Expenditures $13.11M $12.67M
YoY Change 4.85% -28.06%
Acquisitions
YoY Change
Other Investing Activities $746.0K $7.000K
YoY Change -67.57% -80.56%
Cash From Investing Activities -$12.36M -$12.66M
YoY Change 21.18% -27.96%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -241.5M -195.0M
YoY Change -20.25% 576.88%
NET CHANGE
Cash From Operating Activities 264.9M 129.0M
Cash From Investing Activities -12.36M -12.66M
Cash From Financing Activities -241.5M -195.0M
Net Change In Cash 11.10M -78.72M
YoY Change -149.99% -148.27%
FREE CASH FLOW
Cash From Operating Activities $264.9M $129.0M
Capital Expenditures $13.11M $12.67M
Free Cash Flow $251.8M $116.3M
YoY Change -9.51% -39.39%

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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CY2024Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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264397000 shares
CY2024Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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281882000 shares
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CY2023Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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256554000 usd
us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
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us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
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us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
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us-gaap Income Loss From Continuing Operations Attributable To Noncontrolling Entity
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us-gaap Dilutive Securities
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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266270000 shares
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us-gaap Incremental Common Shares Attributable To Conversion Of Debt Securities
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13397000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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266270000 shares
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284047000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
278693000 shares
us-gaap Earnings Per Share Basic
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0.96
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.93
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.93
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.89
CY2024Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
837792000 usd
CY2023Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
862440000 usd
CY2023Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
732567000 usd
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
572395000 usd
CY2024Q2 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
0 usd
CY2023Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
0 usd
CY2023Q2 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
123000 usd
CY2022Q4 us-gaap Restricted Cash And Cash Equivalents At Carrying Value
RestrictedCashAndCashEquivalentsAtCarryingValue
121000 usd
CY2024Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
837792000 usd
CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
862440000 usd
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
732690000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
572516000 usd
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<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"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">FTC Lawsuit Against 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 the company formerly known as Match Group, Inc. 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. On September 11, 2023, both parties filed motions for summary judgment. The case is set for trial in June 2025. Our consolidated financial statements do not reflect any provision for a loss with respect to this matter, as we do not believe there is a probable likelihood of an unfavorable outcome. Further, we do not believe that there is a reasonable possibility of an exposure to loss that would be material to our business. We believe we have strong defenses to the FTC’s claims regarding Match.com’s practices, policies, and procedures and will continue to defend vigorously against them.</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%">Irish Data Protection Commission Inquiry Regarding Tinder’s Practices</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 February 3, 2020, we received a letter from the Irish Data Protection Commission (the “DPC”) notifying us that the DPC had commenced an inquiry examining Tinder’s compliance with the EU’s General Data </span></div><div style="margin-top:6pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Protection Regulation (“GDPR”), focusing on Tinder’s processes for handling access and deletion requests and Tinder’s user data retention policies. On January 8, 2024, the DPC provided us with a preliminary draft decision alleging that certain of Tinder’s access and retention policies, largely relating to protecting the safety and privacy of Tinder’s users, violate GDPR requirements. We filed our response to the preliminary draft decision on March 15, 2024. Our consolidated financial statements do not reflect any provision for a loss with respect to this matter, as we do not believe there is a probable likelihood of an unfavorable outcome. However, based on the preliminary draft decision and giving due consideration to the uncertainties inherent in this process, there is at least a reasonable possibility of an exposure to loss, which could be anywhere between a nominal amount and $60 million, which we do not believe would be material to our business. We believe we have strong defenses to these claims and will defend vigorously against them.</span></div>
CY2024Q2 us-gaap Loss Contingency Accrual At Carrying Value
LossContingencyAccrualAtCarryingValue
0 usd
CY2024Q2 mtch Numberof Lawsuitswith Possible Material Impact
NumberofLawsuitswithPossibleMaterialImpact
1 lawsuit
CY2024Q2 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q2 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q2 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false
CY2024Q2 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false

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