Match Group, Inc.

Good morning and welcome to the Match Group fourth quarter 2020 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then choose. I would now like to turn the conference over to Lance Barton, Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Today's call will be led by CEO Char Dubé and our CFO and COO, Gary Swidler. They will make a few brief remarks, and then we'll open it up for questions. Before we begin, I need to remind everyone that during this call, we may discuss our outlook and future performance. These forward-looking statements may be preceded by words such as we expect, we believe, we anticipate, or similar statements. These statements are subject to risks and uncertainties, and our actual results could differ materially from the views expressed today. Some of these risks have been set forth in our earnings release and our periodic reports filed with the SEC. With that, I'd like to turn the call over to Sean.

Thank you, Lance. Good morning and thank you all for joining the call today. Since this is the first one of the year, I'm going to start out with sharing some of my thoughts and then Gary's going to add a little more color to the financials. The 2020 was some year and even though it feels like we're still dealing with some of the hangovers, All in all, I feel grateful for how we navigated the year, both as an organization and as a business. It is remarkable that despite COVID and lockdown having put a real damper to dating and meeting and socializing, we were still able to meet our goal of mid to high teens growth we set out at the beginning of the year. Needless to say, without COVID, it would have been an even better year. The thing I wanted to point out is the strength of our portfolio strategy, as well as our ability to pull different levers quickly, which is what allowed us to manage through different levels of volatility we saw throughout the year. And as you're probably aware, COVID has had a resurgence in the second half of Q4 and several large markets, UK being an example, where four of our largest brands have a meaningful presence, are seeing an outsized drag still. But despite all of that, every one of our key brands grew revenue again in Q4. And, you know, at the beginning of COVID back in March, April, I don't think I could have predicted exiting the year with a 19% revenue growth and, more importantly, fueled by all of our major brands. Investors should also take comfort in the institutional strength of the company. In addition to having delivered on business goals consistently these last five years of being a public company, in a year like 2020, with all of our global employees working remotely, we were also able to seamlessly navigate leadership changes and even a full separation to become an independent company. So as I look ahead, one thing I do see that 2020 has done in particular is a real step change in user behavior, not the least of which is how much of our lives and activity has moved online. And while I do think as the world gets back to normal, some of this online-offline behavior will rebalance, but parts of this online shift is definitely here to stay. And this, of course, has implications to our products, both in terms of how we evolve the experiences on our apps, as well as looking at new use cases we offer to help people connect. And we think this is going to be a big area for us this year. And again, while we set similar levels of goals for ourselves at the beginning of the year, it is important to keep in mind that the pandemic is still disrupting our lives and activities. And we continue to see volatility, which makes predicting this year particularly challenging. For instance, in many of our Western markets, we generally see a positive seasonality post-Christmas and into the new year. I always like to say single people going home for the holidays and getting nagged by their family is what causes this post-Christmas spike. This year, however, as you can imagine, it was less pronounced. That said, as in Q4, we're still expecting to see all of our major brands grow revenue again in Q1. And as we saw last summer and in countries that emerged from periods of lockdowns, I do expect that as vaccines roll out and things look better on the pandemic front, we will see more people pick up their dating activities and turn to our apps. One of the areas I wanted to talk about is an area of incremental investment and focus we're planning to make this year, which we called out in our letter. It's in our trust and safety efforts. You know, this has been an existential area for our category since the very beginning. And here's how I think about it. In the real world, we've developed laws and enforcement tools and acceptable codes of behavior and rules over hundreds of years. The digital world, by contrast, is barely a couple of decades old. And its popularity really has only increased in the last decade. So it is going to take leadership from tech companies, regulators, law enforcement, and the community at large to work through the acceptable rules and norms of this digital world. And so we're planning to increase investments in our own platforms. But more importantly, you will see us make an increased effort in broader initiatives like partnerships with third-party organizations, technologies, nonprofits. You're going to see us have increased collaboration with law enforcement and regulators around the world in order to continue to be a leading voice on trust and safety in the digital world. All in all, I feel good about our product and our portfolio strategy that gives us multiple levers of growth. The value proposition of our products remains strong, and I am hopeful that the vaccine rollouts are months away. And we will be looking at more normalcy later this year. And just as I am personally looking forward to getting on a plane and visiting with our teams again, I know our users will be out there dating and meeting with the renewed perspective of what connections and relationships mean to them. So with that, I'm going to hand it over to Gary.

Thanks, Char. Q4 saw our fastest top-line growth of the year. 19% year-over-year, a one-point acceleration from Q3 levels. Tinder grew direct revenue 13%, and the non-Tinder businesses continued to accelerate with direct revenue up 28% year-over-year. All major non-Tinder brands contributed year-over-year direct revenue growth in Q4. This was the third consecutive quarter of non-Tinder brands showing growth in aggregate. Pairs, as well as our newer brands, Hinge, Chispa, BLK, and Plenty of Fish live streaming, all grew rapidly in the quarter. We believe Q4 results would have been even better had COVID lockdowns not sent so many people back inside their homes and colder weather limited people's activities in many parts of the globe. The growth in Q4 was very balanced by geography, with each of North America and international contributing 19% year-over-year direct revenue growth. Indirect revenue grew 35% year-over-year, as many marketers looked to deploy unspent budgets in Q4. Average subscribers increased 1.1 million over the prior year to 10.9 million, representing 12% year-over-year growth, up 9% in North America and 14% internationally. Year-over-year, Tinder's average subscribers were up over 800,000, or 14%. and non-Tinder brands were up over 300,000, or 8%. Recall that Q4 tends to be our weakest quarter seasonally for subscriber growth. Virtually all of the sequential subscriber growth in Q4 came from Tinder. Subscriber growth, particularly at Tinder's broad global business, was impacted by COVID-related effects in a number of key markets, including India, Brazil, and Western Europe, particularly the U.K. Total company ARPU was up 5% year-over-year to $0.62, up 7% in North America and 4% internationally. Tinder ARPU was down slightly year-over-year due to a softness in the a la carte revenue as COVID lockdowns increased and a deliberately slower-than-expected rollout of Tinder Platinum, which we decided to only make available to existing Tinder subscribers in Q4. Non-Tinder brand 16% year-over-year ARPU growth was remarkable. All major non-Tinder brands increased ARPU year-over-year in Q4. Pricing optimization at Hinge and OkCupid, the launch of Alucard features at Hinge, and Plenty of Fish live streaming revenue were major contributors to the ARPU improvement in the quarter. Operating income grew 17% and EBITDA grew 13% year-over-year in Q4. EBITDA margins were 38%, 1.8 points lower than in Q4-19, primarily because of higher cost of revenue and sales and marketing spend. Sales and marketing spend was up $34 million, or 34% year-over-year, as we tried to take advantage of new channels in Japan and spent into the well-received match made in hell campaign. Marketing spend represented 21% of total revenue in Q4, in line with Q3 levels, but up three points from the year-ago period. Cost of revenue was impacted by higher IFVs, web hosting costs, and fees related to live streaming video at Plenty of Fish. For the full year, we achieved nearly $2.4 billion of total revenue, up 17%, and almost $900 million of EBITDA, up 15%. Despite all the challenges posed by COVID, we delivered on the mid- to high-teens revenue and EBITDA targets we set a year ago. Our gross and net leverage declined to 4.3 times and 3.5 times, respectively, down from 4.8 times and 4.6 times at the time of the separation from IAC. We are pleased to see net leverage already well below four times. We ended the quarter with $739 million of cash on hand. Due to timing of certain payments, our EBITDA to free cash flow conversion rate was higher in Q4 than it had been year to date through September. As a result, our 2020 full year free cash flow conversion was similar to 2019 levels. As we discussed in our shareholder letter, there is much uncertainty as we begin 2021. We expect COVID will continue to be a headwind for subscriber growth in the first half of 2021, but are hoping for improvement as the vaccine rollout gains steam. Factoring this in, we believe we can generate $2.75 to $2.85 billion of total revenue in 2021, representing another year of mid- to high-teens top-line growth. We anticipate strong contributions to growth by both the Tinder and non-Tinder brands. We expect a combination of low double-digit subscriber growth and single-digit ARPU growth to drive company direct revenue growth. Our outlook also assumes indirect revenue is essentially flat year over year. While we expect Tinder subscriber net additions to gradually improve as 2021 progresses, our Q4 performance is testament to the fact that our growth is no longer dependent on Tinder subscriber additions. We now are a business with multiple growth drivers, and we expect a combination of these will drive strong growth in the foreseeable future. We expect 2021 EBITDA to exceed $1 billion, with mid- to high-teens year-over-year growth, driven by the revenue growth and additional spend in product development, trust and safety, and somewhat higher legal costs. The legal cost increase includes costs to defend the lawsuit by former Tinder employees, which is scheduled to go to trial late this year. Incremental product development spend will be focused in three buckets. One, continued investment in our emerging brands such as Abloh, Hawaii, and PEARS Engage, the latter two of which are targeted primarily at growth in Asia. Two, adding to our tech and video capabilities as we expand our product use cases. And three, supporting growth at Tinder, Hinge, and our other key brands. Given the investments we think are appropriate, we may not expand margins this year. Underlying that is an assumption that conditions will create an environment where our anticipated spend levels, particularly in marketing, make sense, and that is far from certain in the current tumultuous climate. We intend to continue to be flexible and adjust quickly, as we have throughout the past year in the face of the pandemic. In 2021, we expect to again derive meaningful growth from newer brands such as Hinz, Chispa, and BLK, which have recently reached or are close to reaching profitability. As these brands continue to improve their margins, overall company margins will benefit as well. We continue to expect to gradually increase company margins in subsequent years to reach our long-term target of 40%. We expect 2021 capital expenditures of approximately $80 million as we build out new office space in New York and LA. We expect free cash flow conversion levels in 2021 to be similar to those of the prior two years. We do not expect to be a full U.S. federal cash taxpayer until 2023. We expect stock-based compensation for the full year 2021 to be approximately $100 million and depreciation and amortization to total approximately $45 million. For Q1, we expect total revenue of $645 to $655 million, which would represent 18% to 20% year-over-year growth. In Q1, we expect continued 20-plus percent year-over-year revenue growth levels at the non-Tinder brands and slightly stronger year-over-year growth at Tinder than we saw in Q4. We expect EBITDA of $210 to $215 million in Q1, which reflects margins that are consistent with our typical Q1 levels. Our ranges for Q1 and full year 2021 factor in anticipated impacts from Google's new requirement to use their in-app billing system beginning in September. The outlook does not include potential impact from changes to IDFA, which remains difficult to quantify at this time, nor any relief that might be achieved on app store fees as a result of all the regulatory actions challenging Apple and Google's conduct or changes that the stores themselves may decide to impose. We are delighted to be able to provide an outlook which includes mid to high teens revenue and EBITDA growth again for 2021, as we did for 2020 a year ago. We are hopeful that 2021 will gradually provide calmer waters on which we can execute our plan and deliver another solid year of performance for our shareholders. With that, I'll ask the operator to open the line for questions.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble the roster. The first question comes from Benjamin Black of Evercore. Please go ahead.

Great. Good morning. Thank you. Thank you for my questions. I have two, you know, a couple on Tinder. I'd be curious if you could dig a little bit more into the source of the revenue growth slowdown in the quarter and perhaps how sustainable the drag is likely to be in the first half of 21. And then secondly, on your product roadmap, it'd be great to hear the latest on the platinum rollout more broadly to non-subscribers. And how should we think about the impact it'll have throughout 2021? Thank you.

Thank you, Ben. So let me maybe first give a broader picture of how the second wave of COVID resurgence is playing out. And then I'll get into Tinder specific impacts. So the second half of Q4 in particular and into the new year as we saw, There's been a surge in COVID and lockdowns and reduced mobility in many markets. In fact, as I mentioned in my remarks, a normal peak season looks a little different this year. UK, that we called out specifically, looks to be one of the worst impacted, a combination perhaps of both COVID and Brexit there. But there are also less severely impacted markets throughout Europe. Same story here in the U.S. As we saw before, California and New York more impacted than Florida, Arizona, Texas, for instance. Again, few markets in Asia and LATAM have been impacted. And sort of similar to what we saw earlier in the year, the impacts are on Europe. both new users as well as propensity to pay, particularly a la carte. And it, of course, varies by market. So with all of that said, broadly, Tinder specifically, obviously the geographic exposure is greater. And so, you know, if you think about even just markets like India and Brazil alone could create 100,000 swing and subs at Tinder. And then there is the impact to a la carte, which is when propensity to pay goes down a little bit, that's the first one that gets impacted and it hurts Tinder more because it does have a higher portion of its revenue as a la carte compared to the other brands. So with that all said, That hopefully answers the question of what we saw in Q4. We do, as I mentioned, the new year is seeing an impact from COVID. But we are optimistic that as the quarter goes, Tinder is going to see accelerated growth rates here on. Based on everything that we saw over summer and what we're seeing in markets like India in particular and more recent weeks as lockdowns ease and mobility increases, people do turn to our apps. On Platinum, we've always said it's an ARPU play, and because it is a higher-priced product, given the current environment, we have chosen to not roll it out to all users. In fact, it's currently available for current and previous subscribers only. And we will evaluate when it makes sense to roll it out to all users. For the user set that we've rolled it out to, it has gone as we expected. The good news is it has meaningfully improved the efficacy of the product. in terms of driving messages and matches, which was the intention of this package tier. So we do believe it is a good product, and we will be watching to see the right time to roll it out fully.

Excellent. Thank you so much.

The next question comes from John Blackwood of Cowen. Please go ahead.

Great. Thank you. This is for Char and or Gary. On the non-Tinder brand performance, as Gary called out, we saw further acceleration in non-Tinder brands in 4Q. Can you just discuss the key drivers of growth in the quarter and then thoughts on expected contribution of non-Tinder brands in 2021 and longer term would be super helpful. Thank you.

Sure. Gary, I can take this. You know, we laid this out last quarter. Our non-Tinder performance is driven by three main vectors. First, the legacy brands like Match, MeTick, OkCupid, North America, et cetera, they continue to accelerate through product and marketing work. Then there are the new brands like Hinge, Chispa, BLK, which have seen tremendous user and monetization growth. PEARS has been a great contributor. It's opened new marketing channels, which sort of puts it in a really good position for 2021. And then there are new revenue initiatives like POF Live, which became meaningful contributors, and they basically had zero revenue at the beginning of the year. So we do believe that all of these growth drivers and non-Tinder brands are sustainable, and they will continue to make strong contributions in 2021. And even beyond 2021, these brands are positioned to contribute a meaningful amount of our growth as our current drivers get further supplemented by emerging brands like Hawaii, Ablo, and Upward, for instance. So all in all, we feel very good about a broad set of drivers for growth within our portfolio.

Thank you.

The next question comes from Mario.

Great. Thanks for taking the question. So you touched upon this in your prepared remarks, but curious to see if there are any new developments to point to. regarding the potential gross margin or EBITDA impact from not being able to sidestep Google Play payments starting in September. And just to clarify, is the full year guide assuming all Android payments will go through the billing system starting in September? Thanks.

Sure. Let me take that one. First of all, just to kind of step back a little bit on what's going on with gross margins, I would say that In general, our cost of revenue X the IOP fees is relatively stable. That's despite a lot of initiatives we have in there for video and other things. So we're seeing relative stability X IOP. On the IOP side, first naturally, we are seeing a little bit of an increase from the fact that we have a number of apps like HINZ, Chispa, and BLK that are contributing increasing revenue and are growing quickly. and those are fully paying the 30% across the board to the App Store. So the mix of our brand contributions is having some impact on the overall IAP fees as a percentage of revenue. That said, when we look at Apple, which is the largest component of our App Store fees, there's not really flexibility there from Apple, and so we'll have to see kind of how that plays out. There's a lot of scrutiny, as I'm sure you know, related to the App Store's and conduct generally, and so we'll see how that plays out on the app front. On Google, more specifically, they have announced a change in policy that would go effective in September, and that would have a meaningful impact on us if that policy change goes into effect later this year. We have a productive relationship with them, and we're having good conversations. They understand the financial impact on us of their policy change. And so we're hopeful that we'll be able to find a solution that will avoid this added cost for us. You know, our ranges for the year contemplate the impact in Q4 from the Google change. So we'd be lower in the range if that played through and there was no solution, higher if there is. And so we'll see how this all plays out. In general, there's a lot of moving pieces. with regulators around the world and a lot going on related to the App Store fees. So this is going to be a very important year, and we'll see how this plays out over the coming months related to all those discussions and considerations around the App Store fees.

Great. Thanks, Gary.

Yep.

The next question is from Lauren Sink of Morgan Stanley. Please go ahead. Great. Thanks so much.

I guess as we look to hinge specifically in 21, how are you thinking about balancing further ARPU growth versus an acceleration in subscriber growth or payer penetration rates? Sort of any key KPIs or milestones that you can offer about that business exiting 2020? And then just to follow up on your comments on IDFA, obviously a lot of unknowns, but Just any sort of range of scenarios or outcomes that you're contemplating in terms of the rollout of IDFA would be great. Thanks so much. Sure.

You know, about Hinge, our first goal at Hinge was to establish a strong subscription product. And then we have since launched two solid a la carte products. The rose and standouts, which is the equivalent of super likes on Tinder, and that has already surpassed the take rates relative to super likes on Tinder, for instance. Roses, interestingly, are not just a revenue product. They're actually a fairly effective engagement product. They're getting paid. two and a half times more likely to lead to a conversation off the platform. So now ALC revenue at Hinge is already becoming a meaningful component of revenue. And it's important to note at the beginning of 2020, it was basically zero. And so in 2021, there's a full roadmap to make both the subscription products, which are and then focus on making the overall product engagement features. The other thing, of course, for Hinge is user growth. And towards that end, in addition to the existing markets that we already play in, Hinge is testing a select few international markets, but with this broader view of a broader international rollout in 2022. All in all, we're very pleased at how Hinge has been executing on their plan and all the confidence in the world that 2021 will be a great year for them. On IDFA, so obviously since we're not an ad-supported business, The impact to us is mostly on the marketing spend and the user acquisition efficiency. And so, you know, there are a lot of puts and takes, and it is a little bit unclear how this all shakes out. For instance, if the targeting becomes weaker, it will have an impact on marketing efficiency and At the same time, it's unclear to what extent rates may or may not come down. In terms of how we measure and our marketing spend attribution framework goes, we do have experience in evaluating brand spend like out of home and TV, et cetera. So net-net, I don't think we know quite how the market will sort itself out. I do believe it will eventually sort itself out. In the short term, what sort of dislocation happens is unclear, particularly in terms of what the impact will be to our marketing spend efficiency. So we're not really currently building it into our outlook yet. Gary, you wanted to add anything?

No, I think that's exactly right.

Thank you. The next question is from Brent Phil of Jefferies. Please go ahead.

Good morning. Gary, I'm curious if you could just walk through the second half of the year and kind of what you're embedding in your own expectations as many of us are envisioning a return to more normal. What are you embedding for the second half of the year?

Yeah, I mean, Brent, you've watched us for a long time in terms of how we think about outlooks, and there's a lot of uncertainty as we come into this year. We're early in the year, and so naturally, we're trying to be thoughtful about not assuming too much goodness as the year goes on. We're hoping things improve, but as we provide ranges and so forth, we're trying to be cautious and thoughtful just because there are so many questions out there. So, You know, right now, when you look at kind of the year, for the first quarter, you know, we gave specific expectations, which obviously assumes continued COVID headwinds. For the second quarter, we're still assuming some COVID headwinds. And, you know, it'll be an easier comp in Q2 over last year, because obviously there was severe impact from COVID in the second quarter. So, you know, that's something we're factoring into our growth thoughts for Q2. When we get to the back half of the year, which is obviously still pretty far out, we have assumed some reduction in the current COVID headwinds, but not a full return to normalcy for the back half of the year. And we certainly haven't assumed any major resurgence from pent-up demand for dating activity in the second half of the year. It's certainly possible that that could happen. I know there are people who believe that that's what's going to happen. it's just too hard to predict. And so in our normal way of providing an outlook, we haven't assumed, you know, an abnormal level of dating activity, a major burst from pent-up demand in the back half of the year. So our plan is to kind of watch this all for a quarter or two, see how the vaccine rollouts go, see how mobility starts to improve. Clearly, as mobility improves, we see dating activity improve. And, you know, how the world starts to open up. And as the year progresses, If those trends start to be better than we had been expecting, we will adjust our outlook. But sitting here today, we felt that this was the right approach in terms of providing the outlook for the year, but it is something that could get adjusted later depending on what trends we see. Thank you.

The next question is from Kunal Mathukar of Deutsche Bank. Please go ahead.

Hi. Thanks for taking the question. Actually, that's just a follow-up to the last one in terms of the improvement that you're seeing in India with regards to mobility. How is that impacting things like engagement, higher MAUs, the time that they spend on the platform, their activity levels? More specifically, with regard to how one can take that learning from India, that experience from India, into other markets as they kind of open up during the rest of 2021?

I think Shara is trying to speak, but I can't hear her. I can.

Oh, there you go. Sorry, Gary. Hey, Kunal. Sorry. I was on mute. I didn't realize. you know i while i don't want to extrapolate too much india has been one of the hardest hit countries we mentioned that before and in more recent weeks we have seen a real downturn in cases and as people have been coming back to normal we've actually seen a fairly significant rebound now Even though it's gotten better in recent weeks, there was a material impact on subdivisions in Q4 because the first half of Q4 was still fairly impacted. As much as I don't want to extrapolate the India-specific story, we are seeing a correlation between increased mobility and increased activity on our platforms as markets ease out of lockdowns. We've seen that happen throughout summer in a number of other markets that go through long periods of lockdown and then ease up. In India again, Kunal, the other thing to note about it is we did pull back a lot of marketing spend there when we saw the real significant impact last year. but things are looking much better there, and we're going back in, and it will become an area for refocus for growth in 2021 for us.

Thank you so much, Char.

The next question is from Nick Jones of City. Please go ahead.

Great. Thanks. I think this one's probably for you, Char. You know, on the shareholder letter you talked about, and on the call you talked about investing in kind of emerging markets to improve the stigma through improving kind of trust and safety. Can you maybe unpack that a little bit? You know, what are these investments and what kind of impact should we expect from these investments? You know, I guess how material can these investments be to improving the stigma and, you know, does that show up in international growth, you know, near term or just more longer term? Thanks.

Yeah, so in addition to everything I said earlier about, you know, the importance of trust and safety in the digital world broadly, we have firsthand seen the effects of this on our category as we've developed this category over the last 15 years, right? And we know for a fact that it has an impact on category perception and penetration and And we've done a lot of work in this area, particularly in the Western markets. More recently, you know, Japan's a good example of a market where we've been very active on this front from initiatives that we've done on our platforms with features like verifications, our enhanced community and customer care processes, We've worked with local regulators and authorities. We've done a lot of education and outreach through marketing and PR. And all of this work has very directly in Japan actually allowed us to open up new marketing channels, for instance. out of home, several digital channels. We're hoping we can unlock television advertising soon there as well. And so those are very sort of short-term definitive things we can point to. But overall, the perception changes are meaningful in the long term for a lot of these higher stigma markets. We're starting to do similar work in India. which is why I do think we will continue to focus on moderation and safety features, both internally on our platforms. But one of the things we're going to amplify this year is engaging more with outreach with other organizations, third-party technologies, partnerships with nonprofits, working with regulators and engaging law enforcement. I think it's important. I'm personally committed to this. And there is, you know, a lot of work and leadership we can provide in this area more generally for digital platforms.

The next question is from Corey Carpenter of JPMorgan. Please go ahead.

Thanks. I had two questions on Asia. And you touched on this a bit just now around trust and safety. But could you talk about some of your key initiatives and brands more broadly in the Asian region this year? And then secondly, you mentioned Japan as your second largest market today. Should we still think about Asia being 25% of revenue longer term? in the region, or based on your early progress, could it potentially end up being a much bigger part of the business? Thanks.

Yeah, I'll take at least part of that. Look, in terms of kind of Asia and percentage of revenue, 25% does remain our kind of medium-term target. You know, we didn't make as much progress on that in 2020 as we would have liked because of COVID. We're probably in that 17, 18% range, but Asia is still very strategically important to us. We think there's real opportunity there. We've got a lot of different ways of attacking it product-wise. And we think we ultimately will get there and perhaps surpass it. But I think the intermediate term goal is to kind of get to the 25%. We had said that would be in 2023. I think maybe we've gotten one year delayed from COVID. We'll see how things kind of play out. When you look at it, I think Asia being such a big market, you've got to take it in pieces. And so as we did say, Japan is going extremely well for us. We've got a great team there on the ground, a great one-two punch with Tinder and pairs. And we think there's much more opportunity. We've got a matrimony product as well, which we think makes a lot of sense in that market. And we think there's more opportunity in Japan to work with multiple brands. So that's a major focus for us. India. also continues to be a big focus for us. It's a bit of a longer-term play. We've got Tinder there, which has been very successful, as well as OkCupid. I think OkCupid has gotten good traction, but with all of the COVID cases in that market in 2020, we really didn't push as hard, but we are pushing hard again at the start of 2021 with our OkCupid business in India, and we remain optimistic. that we have some good products to work in the India market. And then, you know, we've got other markets like South Korea. That's a market we haven't quite cracked with a product yet. We think there's real opportunity there, and we need to keep trying to find something, you know, that works. So it's a multi-product strategy. Pairs, Tinder, OKCupid, the Match for Money product, Pairs Engage, across the Asian continent. And then we've got Hawaii, which we're still working on the product and feel very good about. that could be a real player in Asia over time, especially in countries where there's large Muslim populations like Indonesia, we think Hawaii could gain significant share there. So again, a bit of a longer term play, but something that we are actively focused on and working on. And then, you know, we talked last year about Tinder rolling out in-app currency to focus on the Asia market, which we think is important to the Asia market in the way Asian users pay and use the products. We didn't roll that out in 2020, mostly because of COVID, but we are planning to resume that initiative for 2021 and expect to roll out in-app currency at first in a couple of Asian markets and kind of go from there. So again, something that got delayed because of COVID, but we are planning to bring that back in 2021. So a lot going on in Asia remains a big focus for us. Our goals remain the same. And we're hoping to make more progress as we turn the corner here into 2021.

Thanks, very helpful.

And the last question today comes from Jason of Oppenheimer. Please go ahead.

Thanks. Maybe can you comment about the success of Alvo that you mentioned in the letter? and your focus on non-dating applications as you think out. And how are you thinking about the monetization of these products? And could we see you develop an ad platform to support these apps? Thanks.

Sure. You know, so as more of our lives are moving online, the opportunities for in real life connections are decreasing. And meanwhile, Loneliness is on the rise around the world. And there's been some interesting lessons we've learned, both from Abloh, which was designed with the thesis that during these times when the shift is going on, there are benefits to having deeper connections and conversations and communities with people online. And there's a feature on OBLO called Around the World, which allows people to connect on themes like food and culture, local culture and travel, and allows them to share their parts of the world with each other. And we're seeing people use that context to connect and chat and video chat one-on-one and have sort of deeper conversations with people around the world. and sometimes these might result in relationships. The other big lesson for us was on POF Live. You know, there's a few interesting anecdotes and stories which sort of illustrate what it is that we're trying to do here. There was a very recently one of the one of the users on POF Live was a homeless man who started building a community and his entire, he's trying to turn his life around with the power of the message of positivity and he's built a real community around it. He talks to people about positive thoughts and he's made 100K on POF Live. And it's turned his life around. One of the other sort of top streamers there is an ex-vet who was suffering from deep PTSD who's managed to turn that around and engage and build a network and a community on POF Live. And he attributes it to having saved his life. So this is the type of sort of human connection that we're trying to enable, which is in the context of our mission, which is of helping people make meaningful connections. So this is what's informing our belief that social discovery is going to – which is already, by the way – popular in other parts of the world. We think this is going to become more and more popular broadly, and hence we're looking into this space for expansion. In terms of monetization, we do believe this sort of a platform lends itself well to virtual currencies and consumables. people gifting one another, etc. And those are sort of the initial things we're testing out on Ublo. And of course, POF Live has a fairly well-established monetization by way of gifting, as we know. So, you know, it's still early days and we're going to try a bunch of different things. We do obviously prefer direct-to-consumer revenue as opposed to ad-based models. And so that's going to be, of course, a part of the work that we're going to do over the coming year.

Thank you.

All right. With that, thank you all again for supporting us and being on the call today. My real hope is the vaccines come soon. We're out of this pandemic fraught era soon. And thank you again.

This concludes the match group conference call. Thank you for attending today's presentation. You may now disconnect.