Match Group Forecasts Revenue Below Analyst Estimates

In a challenging market environment, Match Group, the parent company of dating apps Tinder, Hinge and OkCupid, is reportedly expecting lower than estimated quarterly revenue.

The Dallas-based company has been grappling with weaker discretionary spending by users amid an uncertain economy, Reuters reported Tuesday (May 7).

Match Group said Tuesday that its revenue growth is anticipated to be at the lower end of its previously stated 6% to 9% range, according to the report. For the second quarter ending in June, Match Group forecasts revenue between $850 million and $860 million, falling short of analysts’ average estimate of $882 million, the report said, citing data from LSEG.

According to market intelligence firm Sensor Tower, global Tinder downloads saw a 6% decline in the first quarter compared to the previous year, marking the third consecutive quarter of decreasing downloads. Furthermore, total monthly active users for Tinder dropped 21% globally during the same period. Match Group’s paying users also declined 6% to 14.9 million in the quarter ended March 31, per the report.

While Tinder has been the primary revenue driver for Match Group, the company will need to rely on its other properties for future growth, Jamie Lumley, analyst at Third Bridge, said in the report. Match Group will be hoping that its other segments can soon offset the maturing business of Tinder.

The competition in the dating app market is another challenge for Match Group, according to the report. Bumble, a smaller rival, has been gaining traction with its eponymous dating app.

Match Group’s lowered guidance and the mixed impact of product improvement initiatives implemented by the company’s new management team may delay a turnaround at Tinder, the report said.

Despite these challenges, Match Group reported first-quarter revenue growth of 9% to $859.6 million, surpassing estimates, per the report. The company also exceeded profit per share estimates, reporting 44 cents per share compared to the estimated 40 cents per share.

PYMNTS Intelligence has found that Tinder, Bumble and Hinge are among the most popular dating apps used in the United States.

Together they represent about 60% of the 60 million-plus downloads in 2022, according to the “ConnectedEconomy Monthly Report: The Love and Social Media Edition.”

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