Tinder paying customers fall for the sixth quarter in a row
Kyiv • UNN
Tinder's paying customer base fell 9% year-on-year to less than 10 million in the latest quarter, falling short of analysts' estimates, as Match Group struggles to retain users amid price changes and declining consumer spending.
Match Group Inc. reported that the number of paying customers to Tinder, the largest dating app, has been falling for the sixth consecutive quarter. Shares fell by 5%, UNN writes with reference to Bloomberg.
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The number of paying customers on the platform dropped 9% from a year earlier, amounting to "less than 10 million" in the first quarter, the Dallas-based company said in a statement on Tuesday. Analysts had predicted about 9.8 million users. The company attributed the loss to price changes made last year, as well as a decline in active users.
Match, which also operates the Hinge dating platform, has been struggling to retain subscribers for more than a year and is facing increasing pressure to turn things around. In March, the company appointed two new directors to its board after negotiations with active investor Elliott Investment Management and signed an information-sharing agreement with the fund run by billionaire Paul Singer.
Tinder "continues to face challenges," Match CEO Bernard Kim said in a letter to shareholders, "in part due to declining consumer discretionary spending." He said that the company is working to improve the Tinder experience, especially for women and Generation Z users, and expects the decline in the number of users to slow down "in the second half of the year.
In an effort to increase revenue, the company has tried tiered subscription models and niche dating apps, such as Archer for GBQ men and The League, which targets career-seeking singles.
But the forecasts continue to disappoint: on Tuesday, Match predicted that second-quarter revenue would range from $850 million to $860 million, well below analysts' estimates. Adjusted operating profit is expected to be in the range of $300 million to $305 million, which is also below the forecasts.
Match shares have lost more than 13% of their value this year. The stock fell 5% to $30.04 in aftermarket trading on Tuesday. Competitor Bumble Inc. is doing even worse: in 2024, its shares fell by 30%.
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