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This statistic highlights Match Group’s ARPU by Region starting from Q1 2016 onwards, split between North America and International regions.
|Region||Q1 2020||Q4 2021||Q1 2021|
ARPU is a widely used measure that may be used by a variety of organizations, but it’s most typically used to evaluate subscription-based services. It’s a clear, simple measure with a few key applications. Businesses use this statistic to track the aspects that contribute to the organization’s overall income. ARPU assists businesses in analyzing their growth trends and comparing their performance to that of their competitors.
ARPU is determined by dividing Direct Income from Subscribers in the applicable period of observation (whether à la carte or subscription revenue) by Average Subscribers of the same period, then multiplying by the number of calendar days in the period. It’s worth noting that ARPU excludes Direct Revenue from users who aren’t subscribers and have just purchased à la carte features. ARPU is a daily measure that solely considers Direct Revenue from subscribers.
Calculating ARPU is an excellent approach for a company to keep track of its annual growth. ARPU may be used by service and software companies that provide various monthly membership tiers to track the monetary worth of each new user. They may then analyze the value of each subscription’s users to see which premium offers have the largest impact on income.
The ARPU is calculated with regards to two distinct regions:
North America: The financial results and analytics linked with users in the United States and Canada are referred to as North America.
International: Financial performance and indicators for users outside of the United States and Canada are referred to as international.
Price, product mix, regional sales mix, and changes in Core Direct to Consumer Customer count across periods can all have an influence on ARPU. ARPU enables the organization to comprehend the value of their offerings to the segment of their client base that transacts with them directly.
In 2020, International Direct Revenue increased by $176.4 million, or 18%, over the previous year, thanks to an increase of 18% in Average Subscribers. Similarly, in 2020, North America Direct Income increased by $161.1 million, or 16%, owing to a 7% rise in Average Subscribers, a 7% increase in ARPU.
Tinder was the primary driver of growth in International and North American average subscribers. Chispa, Hinge, and BLK, all contributed to the upsurge in North American average subscribers. Meanwhile, Pairs contributed to the increase in international average subscribers. Increases in à la carte sales on Tinder, premium memberships such as Tinder Gold and PlentyOfFish, and more optimized and improved subscription pricing on Hinge drove up ARPU in North America.
With regards to currency exchange rate; the strength of the US dollar against the Euro, the British pound (“GBP”), and other currencies had a negative influence on international ARPU.
Indirect Revenue fell $8.6 million for the year ended December 31, 2019, compared to the year ended December 31, 2018, owing to lesser impressions and a lower price per impression received from an advertising network provider. This Indirect Revenue grew by $2.5 million in 2020, because of higher rates per impression. This is indicated by the subsequent greater ARPU.
About the company
Match Group, Inc. is a significant global provider of dating goods through its portfolio companies. Tinder®, Match®, Meetic®, OkCupid®, Hinge®, PairsTM, PlentyOfFish®, and OurTime® are among their portfolio of brands, all of which are meant to boost their users’ chances of making a meaningful relationship. The company delivers customized goods to satisfy the various needs of its consumers through various portfolio companies and their trusted brands. The products are offered to their consumers are in over 40 languages throughout the world. Dating, Match Group’s only operating sector, is handled as a portfolio of dating brands.
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