Match Group, Inc. (MTCH) Earnings Call Transcript & Summary

Welcome to the Match Group Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I would now like to turn the conference over to Tanny Shelburne, Senior Vice President of Investor Relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Today's call will be led by CEO, Spencer Rascoff; and CFO, Steven Bailey. They'll make a few brief remarks, and then we'll open it up for questions. Before we start, 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 with the SEC. Also during this call, we'll discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the published materials on our IR website. These non-GAAP measures are not intended to be substitutes for our GAAP results. With that, I'd like to turn the call over to Spencer.

Good afternoon, and thanks for joining us. This was a strong quarter for Match Group and an important one for Tinder. Over the past year, our priority at Tinder has been making the product work better for users. That includes improving our recommendations algorithms, introducing lower pressure ways to connect like Double Date and Modes, and up-leveling Trust and Safety. Monthly active users or MAU declines have narrowed significantly since we began this work, supported by a better product experience that is improving user outcomes and increasing engagement. Daily active users or DAU trends have also improved meaningfully, and we expect them to turn positive year-over-year any day now. This is a huge milestone for us. It will be the first time that Tinder has had positive year-over-year usage in more than 3 years. To reach our ultimate goal of returning to MAU growth, we need to drive more reconsideration through product innovation and marketing. That means giving the millions of singles who have used Tinder before and those who have never tried more reasons to download the app. Tinder's second half road map is geared to do exactly that. Meanwhile, Hinge continues to deliver strong growth with meaningful runway across product innovation, international expansion and monetization. And at E&E, which now stands for Everyone Everywhere, we are sharpening the strategy and applying more of Match Group's shared capabilities. We delivered these improvements while maintaining strong financial performance, with total revenue down just 1% and adjusted EBITDA growing 14% year-over-year. And we've continued to return meaningful capital to shareholders at the same time. Before I joined, Tinder was not shipping features quickly enough to keep pace with evolving user expectations. That has changed. AI has accelerated execution across product development life cycles, enabling us to move faster and execute against an ambitious second half road map designed around how Gen Z wants to connect. Our internal research shows that nearly half of singles aged 18 to 29 want to share in-person experiences with people who could become closer connections. Yet for a generation that grew up online, making that transition into real life can still feel hard. That is why we are doubling down on more social, lower-pressure ways for users to connect in real life. Our Events feature is an important component of that strategy. It gives users a dedicated place inside Tinder to discover local activities, see who else is interested before attending and continue connecting afterward. We began piloting Events in Los Angeles in March. And since then, more than 60 events have brought Tinder users together in person. We see the value of Events extending far beyond those who attend, bringing more real-world connection into the experience can help shift perception of Tinder and the category more broadly, giving singles a reason to reconsider and try the app. Early signals support that potential. Roughly 3 in 5 people who do not use Tinder today say Events would make them more likely to do so, and a similar share say it would make connecting feel easier. Over half also described the experience as something uniquely Tinder. During the Los Angeles pilot, 71% of eligible users aged 18 to 24 engaged with the in-app Events tab, and more than half of users who visited the tab returned the following week. Based on that success, Events is now live in 9 additional cities across the U.S. and Europe, with plans to reach 26 cities by the end of September. Today, we are scaling Events through a low-cost model built primarily around partnerships with leading event providers. Missed Connections brings the in-app and real-world experiences together by surfacing a weekly curated set of profiles in a dedicated tab based on who users crossed paths with in the prior week. It's now testing in Canada and Australia, and creating a more serendipitous way to discover someone new while continuing to prioritize user safety and privacy. AI helped this team move from idea to final product in just a few weeks, compressing what would typically be a multi-month development process. We're also expanding how users discover people inside Tinder. In Canada, we are testing a new text-based Search feature to help users find people they are interested in more efficiently. Early adoption is promising, with approximately 10% of exposed users submitting a Search and tens of thousands of searches generated in the first few weeks. At the same time, we continue to improve our recommendations algorithms. Earlier this year, updates to our algorithm for straight women drove significant gains in Sparks and Sparks Coverage. In mid-July, we rolled out an updated version that is delivering further engagement improvements, and we're now extending these updates to straight men and LGBTQ+ users, where we expect to see similar benefits over time. We are also testing more ambitious changes to our core discovery section and profile quality, including a reimagined user experience with more contextual, individually engaging profile elements and AI-powered profile building. Together, these changes are supported by Tinder's first full rebrand in nearly a decade. Now live globally, the more modern Tinder identity includes a new logo, color palette, wordmark, typography and visual identity. This gives Tinder a fresh new look and early results have been positive, with nearly all engagement metrics improving post rollout. Tinder's richer product road map is creating a steady cadence of new marketing moments, giving users more reason to reconsider the app as it evolves. In the U.S., recent Music Mode and Astrology Mode campaigns have helped improve new registrations among women. We have also shifted our strategy more towards lower-funnel channels, which now represent roughly half of our total spend, up from 30% last year. And we believe that shift is helping trends among women. In the second half, we plan to build on that momentum with targeted marketing around Events, Modes and Search. Employee engagement at Tinder is higher than it's been in years, reinforcing a belief I've held throughout my career: great people, properly motivated, build great products, and that's exactly what we are seeing at Tinder. In Q2, improvements to the Tinder experience continued to translate into stronger engagement, particularly in key markets and demos, and those trends strengthened further in July. DAU declined 4% year-over-year in Q2, its best result in the past 10 quarters, and a significant improvement from declines of roughly 10% less than a year ago, while global user retention increased 1% year-over-year. In July, DAU improved for the fifth consecutive month to down nearly 2.5% year-over-year. Together, these metrics show that as the experience improves, users are more likely to return, whether the next day to continue a conversation or the next month to make a new connection. Sparks and Sparks Coverage remain important indicators of whether Tinder is helping users form meaningful connections. In Q2, both metrics were broadly stable versus Q1, globally and among women. Sparks declined 4% year-over-year in Q2, while Sparks Coverage grew 2% year-over-year as we began to comp over product improvements from last year. The stability in Q2 shows the product improvements we've made are having a lasting impact. Following the mid-July rollout of the latest version of Tinder's recommendation algorithms, Sparks and Sparks Coverage have moved substantially higher through month end. We also saw improvement in MAU. MAU declined 7% year-over-year in Q2, 1 point better than the 8% decline in Q1, with the biggest gains in our most important markets and user demos. Year-over-year MAU trends improved across each of Tinder's top 5 revenue countries. In the U.S., its largest market, declines slowed by approximately 2.5 points in Q2 compared to Q1. We saw similar progress among women where MAU improved across all major geographic regions and age groups, with global MAU among women down 8% year-over-year, 3 points better than the 11% year-over-year decline in Q1. As MAU improves, we're seeing that directly translate into improved year-over-year direct revenue and payer trends over time. Payer penetration, the percentage of MAU paying for a subscription or a la carte feature, was up year-over-year in Q2, both globally and across Tinder's top 5 revenue countries in aggregate and direct revenue per MAU was up 6% year-over-year globally. While we don't expect these metrics to always move in lockstep every quarter, given that we have some user experience tests and monetization initiatives can have short-term impacts to payers or revenue, the longer-term trend is clear and gives us confidence that continued MAU improvement should support better payer and revenue results over time. Turning to Hinge. Hinge continues to be the best example in our portfolio of product-led growth at scale. Hinge has strong product market fit with intentioned daters and its "designed to be deleted" promise is clear. The team is disciplined about building against one objective: helping users get out on great dates. Global MAU grew 13% year-over-year in Q2, driven by strong growth in its expansion markets. In core markets where Hinge remains a top downloaded app and has achieved significant scale, MAU remained relatively flat year-over-year, while revenue continued to grow double digits in aggregate. The team is focused on further strengthening its position in core markets through product innovation and brand storytelling that supports the evolving needs of Gen Z daters. In the U.S., the Can't Believe We Met on Hinge brand marketing campaign speaks to the vulnerable emotion behind dating, where the process can feel frustrating, but the desire for a meaningful relationship remains strong. Early results are encouraging, driving a positive lift in overall registrations and in particular, among young women, as well as a measurable impact on brand sentiment. Hinge is still expected to reach $1 billion in revenue in 2027, and we see 3 primary drivers of that growth: product innovation, international expansion and monetization runway. First, product innovation. Hinge continues to improve its core user experience across the dating journey from self-expression and discovery, to early engagement on the app, to ultimately meeting in person. Friend's Take, which officially launched in mid-July, brings the people who know you best into an individual's dating experience. Friends and family can contribute text, voice, video and photo reflections to a user's profile that help create a richer, more authentic picture of who someone is. The team is improving its recommendation algorithms with a particular focus on the women's experience and testing features like Your Type Lately in select markets, which lets daters describe what they're looking for in their own words, from hobbies to personal values. Gen Z daters learn more about what they are looking for as they date. This approach clarifies who a user is drawn to right now and adjusts recommendations for that user. For returning users, Prefilled Basics lets people who deleted their accounts pick up where they left off instead of starting from scratch. It is a simple change that reduces friction for intentioned daters to reenter the ecosystem and start having relevant experiences and success more quickly. AI is also becoming more important to building the Hinge experience. The team is building its first reinforcement-learning model to better understand when a user may need help and what kind of help would be most useful, whether it's a nudge, a tip or other prompt at the right moment. Over time, we see a path for this to become a broader personalization layer across Hinge. And finally, Signals makes effort and follow-through more visible, recognizing and rewarding daters who demonstrate thoughtful participation, which is particularly important for women. The Signals badge also creates a new surface area for value creation, allowing subscribers to filter on only those users with a badge. Signals is driving meaningful outcomes for users, including more conversations, while incentivizing better behavior like sending likes with comments. Signals also led to a 15% increase in selfie verification for existing users in tests. Second, international expansion. Hinge grew direct revenue 86% year-over-year across its European expansion markets and maintained the #1 downloaded position in aggregate across those markets in Q2. Hinge also entered 6 new European countries during Q2. Beyond Europe, we continue to see meaningful runway in Latin America, where Hinge has entered 4 new countries, building on the momentum in Brazil and Mexico. India is also an important expansion market for Hinge, supported by already strong organic growth and representing the brand's first meaningful push into Asia. Third, monetization. We see significant runway for future monetization through both further payer penetration and monetization optimizations over time at Hinge. We also plan to begin testing an additional subscription tier in Q3. The goal for Hinge is to create offerings that are new, differentiated and highly relevant to women, that are worth paying for. Stepping back, Hinge is already a strong business, but the long-term opportunity remains large. The team is executing, and they are doing it in a way that stays anchored in what makes Hinge distinct: helping intentioned daters get off the app and on to great dates. Turning to E&E, which now stands for Everyone Everywhere. Over the past quarter, we completed a deep review of E&E and have established a clear direction for the portfolio. E&E, which now includes our 2 Asia-based businesses, Pairs and Azar, serves distinct audiences across community, geography, identity, lifestyle and life stage. With the major platform migrations now complete, the portfolio has a stronger foundation to execute from. Moving forward, E&E has sharper brand-by-brand priorities, with a greater emphasis on user outcomes and ecosystem health. We are making more deliberate investment choices and aligning resources behind the brands and capabilities with the strongest long-term potential. E&E brands are benefiting from shared Match Group capabilities, including Trust and Safety, recommendation algorithms, cross-sell, centralized marketing, consumer research and more. Under this 1MG approach, we are building shared capabilities that can support multiple brands over time. For example, we expect Tinder Events to power in-app events on BLK in Q4, with the potential to extend the capability to other E&E brands in ways tailored to their audiences. We're also integrating analytics and performance marketing, while increasing collaboration and recommendations and Trust and Safety. There is still work ahead, but the early progress we see gives us confidence that E&E is moving in the right direction. We look forward to sharing more in the coming quarters. Turning to final thoughts. I'll leave you with this. Our mission is rooted in a simple truth: humans need humans. At a time when technology often pulls people further into their screens, we are building products that help people form meaningful connections in the real world. Our progress this quarter demonstrates our sustainable growth flywheel is working. Product innovation, increasingly powered by AI and 1MG, is delivering better user outcomes. Those outcomes strengthen engagement, retention and ecosystem health, which supports audience growth and over time, stronger financial performance. Our job now is to keep every part of that flywheel turning faster and better convert experiences into sustainable growth. That's how Revitalize becomes Resurgence. With that, I'll turn it over to Steve.

Thanks, Spencer. We're pleased with our Q2 results. Revenue was in line with our expectations and adjusted EBITDA exceeded our expectations. As a reminder, we reorganized the business into 3 segments: Tinder, Hinge and E&E, which now includes our Azar and Pairs businesses. Historical periods have been recast in the supplemental materials available on our IR website. Unless otherwise noted, all amounts are on an as-reported basis and comparisons will be discussed on a year-over-year basis. More details can be found in the financial table below. In Q2, Match Group's total revenue was $853 million, down 1%, down 2% on a foreign exchange-neutral basis. FX was $2 million worse than we expected at the time of our last earnings call. Payers declined 6% to $13.3 million, while RPP increased 6% to $21.13. Indirect revenue was $13 million, down 28%, reflecting lower spend from our top advertisers compared to a strong Q2 last year, as well as some reallocation of spend during the World Cup. In Q2, Match Group's adjusted EBITDA was $331 million, up 14%, representing an adjusted EBITDA margin of 39%. Tinder direct revenue in Q2 was $457 million, down 1% and down 2% FXN. Q2 direct revenue includes an approximately $8 million negative impact from user experience tests and product changes in the quarter. Payers declined 5% to $8.5 billion, consistent with our expectations. RPP increased 4% to $17.90. Adjusted EBITDA in the quarter was $233 million, down 5%, representing an adjusted EBITDA margin of 50%. Hinge direct revenue in Q2 was $204 million, up 22% and up 20% FXN. Payers increased 17% to $2 million and RPP increased 4% to $33.11. Adjusted EBITDA was $79 million, up 48%, representing an adjusted EBITDA margin of 39%. E&E direct revenue in Q2 was $179 million, down 17% and down 17% FXN. Payers declined 21% to $2.7 million, while RPP increased 4% to $22.24. The revenue impact from Azar's app redesign was approximately $5 million better than we anticipated at the time of our last earnings call. Adjusted EBITDA was $54 million, up 69%, representing an adjusted EBITDA margin of 30%. Including stock-based compensation expense, total operating expenses in Q2 were down 9%. Cost of revenue decreased 16% and represented 24% of total revenue, down 4 points as a percentage of total revenue, primarily driven by alternative payment savings. Selling and marketing costs increased $10 million or 7%, up 1 point as a percentage of total revenue to 19% as a result of increased marketing spend at Tinder and Hinge, partially offset by reduced marketing spend at E&E. General and administrative costs decreased 22%, down 3 points as a percentage of total revenue to 12%, driven by lower headcount-related costs, including SBC and lower legal expenses. Product development costs were flat year-over-year and as a percent of total revenue, at 13%. Depreciation and amortization decreased by $5 million to $24 million. Our trailing 12-month gross leverage was 2.7x, and net leverage was 2.2x at the end of Q2. We ended the quarter with $584 million of cash, cash equivalents and short-term investments on hand, and used $424 million of cash to pay off the exchangeable notes that matured in June. Year-to-date through Q2, we generated operating cash flow of $564 million and free cash flow of $527 million. We repurchased 7.3 million shares at an average price of $34 per share for a total of $245 million, paid $91 million in dividends, and deployed $92 million of cash towards net settlement of employee equity awards, equating to 81% of free cash flow. Between July 1 and July 31, 2026, we repurchased an additional 430,000 shares at an average price of $38 per share for a total of $16 million. As of July 31, 2026, we reduced diluted shares outstanding by 5% year-over-year. Our capital allocation strategy remains unchanged, prioritizing investment in the business to drive growth, returning capital to shareholders through buybacks and the dividend, and selective M&A. Now for Q3 guidance. We expect Q3 total revenue for Match Group of $885 million to $895 million, down 2% to 3% year-over-year. This range assumes a 1 point headwind from FX. FX neutral, we expect total revenue to be down 1% to 2% year-over-year. Q3 total revenue guidance assumes a $10 million negative impact from Tinder's user experience test and product changes, and a $15 million negative impact from lower Azar direct revenue as a result of the required app redesign. We expect indirect revenue to be approximately $15 million in the quarter. We expect Match Group adjusted EBITDA of $330 million to $335 million, representing a 10% increase and adjusted EBITDA margin of 37% at the midpoints of the ranges. Moving to full year 2026 guidance. We expect Match Group total revenue to be near the midpoint of the guidance range provided in February on an as-reported basis and at or above the midpoint FXN. We now expect FX to be an approximately 0.5 point tailwind to full year total revenue, 0.5 point worse than we expected when we provided our guidance in February. We continue to expect full year indirect revenue to decline in the mid-teens percent. We expect adjusted EBITDA to be at or above the high end of our guidance range provided in February and adjusted EBITDA margin to exceed our 37.5% target, benefiting from better Tinder direct revenue trends, alternative payment optimizations and cost discipline across the company, partially offset by incremental marketing spend at Tinder and Hinge in Q3 and Q4. At Tinder, we expect direct revenue to decline in the low single-digit percents, an improvement from our full year guidance provided in February. We expect Tinder user experience test and product changes to be a $30 million to $40 million negative impact to direct revenue, less than the $60 million impact we included in our initial guidance. At Hinge, we expect direct revenue to be in line with our full year guidance provided in February. At E&E, our full year guidance in February, inclusive of Azar and Pairs, would have been direct revenue declines in the low double digits and adjusted EBITDA margin in the mid- to high 20%. We now expect E&E direct revenue to decline in the mid-teens percent, primarily due to the Azar app redesign and adjusted EBITDA margin to be in the high 20%. We expect free cash flow to be at the high end of our guidance range provided in February. We expect SBC expense to be $230 million to $240 million for the full year, a $20 million improvement at the midpoint of the range versus our initial guidance, reflecting continued discipline on headcount-related costs. With that, let's turn it over to Q&A.

[Operator Instructions] Our first question today is from James Heaney with Jefferies.

Curious what you think is driving DAUs for Tinder to turn positive sometime in the next few days. I know you have a lot of initiatives in place, but curious if there's anything in particular. And also interested in why the DAU improvement is more pronounced than what you're seeing in terms of MAUs.

Thanks for the question, James. So the big picture on turning around Tinder is 3 steps. The first is improving the product so that our existing users have a better experience. The second is relaunching the brand with a redesign, which we've just done. And the third is to use Events and other features to drive new users who either aren't using Tinder or perhaps have never used Tinder. So what we've done so far has really improved the product itself, and that's why DAU is improving so quickly because we're getting a higher level of engagement from our existing users. To try to select what it is that's specifically driving product improvements is difficult because we've done so much. We've done Double Date, Astrology, Music Mode, Events, video speed date. We're about to launch a groups feature. We've improved recommendations. We've got better notifications and SMS messaging. We have Face Check. We did a rebrand. We now have Search. We redesigned chat. We redesigned the Likes You tab. We've built new profiles and photo upload. We basically changed every single thing about the Tinder app in the last 12 months, all to great effect. If I had to choose one, which is difficult, the one I would choose would be a recommendation algorithm improvements, where we are showing more people, the people that would be good matches for them, and that is driving better user retention. To give you some data, some of which I shared in the prepared remarks, some of which is kind of breaking news, I'll give you some info here. So matches are up 14% year-over-year. And last quarter, matches were up 7% year-over-year. Unique people with Sparks in Q2 were down 4% year-over-year. In July, they were down only 1% year-over-year. And today, in August, it's trending better than the July numbers. Sparks Coverage was up 2% year-over-year in Q2. In July, it was up 5% year-over-year. And today, in August, it's trending better than the July numbers. And DAU, as you mentioned, was down 4% year-over-year in Q2. In July, it was down 2.5% year-over-year. And today, in August, it's almost positive. So we continue to gain momentum even day by day. To your question about why is DAU ahead of MAU, that comes to the point around driving reconsideration for people who either aren't Tinder users today or maybe have never been Tinder users. And the big initiative there is Events. So we fired the starting gun on Events in January. In March, we were in 1 city. In July, we were in 5 cities. Today, we're in 10 cities, including in Europe. In September, we'll be in 26 cities. By the end of the year, we'll be in 75 cities. So the product and engineering team and the event operations team are moving very, very quickly, launching event partnerships in new parts of the world, and also building products and features to support it, like letting users see many profiles of who will be attending events, letting people message one another after the events. In terms of our optimism for why we think this will drive engagement among new users, well, our research says that 60% of non-Tinder users say they're more likely to use Tinder because of Events. And as I already shared in the prepared remarks, 71% of 18- to 24-year-olds engaged with the Events tab and more than half of those that engage in the Events tab come back the following week to engage further with it. So we have a lot of qualitative research and also quantitative research to give us confidence that this will be a powerful way to drive reconsideration and change perception of Tinder for new users and lapsed users.

The next question is from Shweta Khajuria with Wolfe Research.

I have one -- a little bit of a follow-up. So payer penetration improved year-over-year and payer growth is down year-over-year. So I guess, could you please talk to that gap and how you see that gap narrowing to turn that around into positive growth? And then on DAU turning almost positive, how are you thinking about the lag between DAU to MAU to payer? Anything on that in terms of timing of that, that would be great.

Thanks for the question. Let me take the payer penetration one. Yes, look, there's a couple of things we said. One, payer penetration was up year-over-year in Q2 globally. That's true. And also direct revenue per MAU, which takes into consideration payer penetration and RPP, was up 6% year-over-year in Q2 at Tinder as well. Yes, payers are still down, but they're declining at less than the rate of MAU. That's why payer penetration is up. And that's a trend we've seen for some time now. Those 2 metrics tend to follow together, which is great. The payers declines are less than MAU. It's been that way for quite some time now. They won't move in lockstep every quarter. I don't think we should expect that. And really why that is, is because we're doing -- we've talked a lot about user experience tests and product initiatives that can have impact to payers and also sometimes monetization initiatives can have impact to payers, but are clearly the right thing to do for long-term revenue. So there can be some disconnect in any particular quarter, but the long-term trend is very consistent. As MAU improves, payers have improved the trend. And in fact, for the last couple of years, payer declines have been less than MAU declines, and that points to the fact that payer penetration is up. So that's how I would think about it. In terms of the expectation going forward, I do expect payer declines to lessen a little bit in the back half of the year in Q3 and Q4 from where they are today at minus 5%. So that's what we're counting on. That's what's included in the guidance.

The next question is from Benjamin Black with Deutsche Bank.

Spencer, I think you spoke about testing a reimagined user experience with more contextual and individually engaging profile elements. Could you dig into that a little bit more? And perhaps more broadly, how do you think about the Tinder user experience evolving over the next 12 to 18 months? And then, Steve, I guess, for you, you lowered expectations for the giveback for the year. Could you just talk about the genesis of that decision? And how should we think about the reallocation of those savings potentially?

Yes. Thanks for the question. It was a bit of a mouthful, the way I described changes to the user experience because we're testing so many different things. So I'll describe it this way. The Tinder historical product experience for how you browse and assess potential compatibility with people has historically been quite simplistic, which is a feature and a bug, meaning that it's historically been a quick assessment of a photo-centric presentation of somebody. You're looking at a photo and you're saying, quickly, is this person a fit for me? Yes, no. If yes, swipe right, if no swipe left. We've been slowly changing that product orientation to present more of the whole self into the evaluation of whether there's compatibility. Why? Because we think that's where consumer tastes are. We think that consumers want to assess the overall person's compatibility, including the way they answer prompts with pros. They want to consider things other than just the appearance of the photo. But to make that change requires a very -- a lot of complexity. You have to, first of all, change the profile creation so that people are encouraged to enter qualitative information and answer questions with text. You have to help them with photo selection so that it's easier for them to add more photos, so the profiles are more complete. You have to test the different displays of the profiles and make sure that you're balancing user improvements with monetization. So this is work in progress. We've made a lot of progress already, but we're continuing to experiment with different ways to give people a better sense of potential compatibility that slow things down and are more attuned to changing consumer taste, but we have to balance that with monetization at the same time. Steve, the second one?

Yes. Let me take the user givebacks. Let me just start at the beginning, so we're all on the same page. We originally said $60 million for the full year in user experience tests. That's a negative impact to full year revenue. That's what we sort of included in our guide. Then last quarter, we said we had expected $45 million in the second half of the year. And now we're saying that's only going to be $30 million to $40 million for the full year. So the $60 million for the full year has come down to $30 million to $40 million for the full year. The way that breaks out, you guys can do this math, but let me just help you. It was $5 million in Q1 of user experience-related revenue declines. Q2 was $8 million. Q3, we're guiding to $10 million, which means Q4 will come in, we think -- we expect between $7 million and $17 million. So that's how it breaks out by quarter. Why is it less than what we originally expected? As you know, we were coming in less than expected for the first couple of quarters of the year. So that's part of it, but we had kept that $45 million in the second half when we talked 3 months ago. The biggest reason for that was we were a little bit unsure of how the rebrand, in particular, would play out and what impact that might have on revenue and engagement metrics. Often, rebrands can have revenue impacts just because you're changing so much about the UI and sometimes UX. That thankfully did not happen. We saw no revenue impacts. We saw a positive -- largely positive impact to user engagement. So that's what's given us the confidence to take down the full year expectation at this point. Why we have a range of possible outcomes for Q4 between 7% and 17%, that's obviously related to the testing we're planning to do between now and the end of the year. If you -- I think the biggest swing factor there is what Spencer just talked about. It's the reimagined profile and browse experience. We want to give the teams room to test and be creative and really think about different ways to improve the product. So I think that, coupled with obviously -- with some continued REX testing, those are the things that will -- depending on how they roll out are tested and what impact they might have, that will determine where we come in at for Q4. So hopefully, that brings some clarity to user experience test budget.

The next question is from Nathan Feather with Morgan Stanley.

First on the Events feature, really interesting addition. Given the local nature there, how do you scale that up so you can reach a meaningful portion of the base? And just any way to frame of those 75 cities you're entering, what portion of your user base in those cities or in those metro areas? And then also, sorry if I missed it in the letter, but what was the July MAU growth?

Okay. Yes. So thanks, Nathan. On Events, most of the events are coming into the platform through partnerships, some with national, some with regional partners, some with local partners. So we have an event sourcing team that's building out those partnerships that allows us to scalably expand to many cities. What we've seen so far in the first couple cities is that even more important than the number of the people -- the number of people that actually attend the events or the percent of our DAU or MAU in a given city that attend the events is the amplification of these events on social media. That's actually what gives people the, kind of, permission in their own minds to start changing brand perception about Tinder. They see people using the Tinder app are talking about Tinder on social and attending an event and say to themselves, wow, I didn't know that Tinder had events. I didn't -- this is a new way to meet people fun and safely with friends. And it changes perception even if they're not actually attending the event themselves. So we feel like this can start to bend the curve on perception and reconsideration even if it only touches a relatively small percentage of total users in a given city.

Yes. We did not give a July MAU stat. We talked about DAU. One of the reasons we do that is just because there's a -- we have to go through a defrauding process, and it's really not the best idea to give MAU just a couple of days outside of a month. So that's one of the reasons we didn't give it, but we did give DAU. So hopefully that -- and some of the other engagement metrics. So hopefully, that helps give a sense of how Q3 is off to a good start.