Match's weak quarterly revenue forecast clouds improving trends at Tinder
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Aug 4 : Match Group forecast third-quarter revenue below Wall Street estimates on Tuesday, overshadowing signs of improvement in its struggling Tinder app and continued growth at its Hinge dating app, sending its shares down 9 per cent in extended trading.
The weak outlook stems from the company's Everyone Everywhere brands, including its Asia-based Pairs and Azar businesses, Chief Financial Officer Steve Bailey told Reuters in an interview.
Match now expects mid-teens percentage declines in Everyone Everywhere revenue, compared with a low double-digit decline forecast in February, largely due to the Azar app redesign.
The company said it expects third-quarter revenue of $885 million to $895 million, with the midpoint coming in below analysts' estimates of $891.5 million, according to data compiled by LSEG.
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Dating apps are betting on artificial intelligence-powered features to adapt to changing user preferences and improve matchmaking.
Tinder is using AI to speed up product development and rolling out social features aimed at helping younger users make real-world connections. Its Events feature, piloted in Los Angeles in March, has hosted more than 60 gatherings.
The events product currently focuses on driving user growth rather than direct revenue, but is expected to become a revenue driver by 2027 and beyond, Bailey said.
Tinder's daily active user decline narrowed to 4 per cent in the second quarter, the smallest percentage decline in 10 quarters. Hinge's global monthly active users rose 13 per cent, driven by strong growth in its expansion markets.
Match reported second-quarter revenue of $853 million, down 1 per cent, missing analysts' estimates of $856.8 million.
Paying users fell 6 per cent to 13.3 million, though revenue per payer rose 6 per cent to $21.13.
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