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Match Forecasts Lackluster Revenue as Tinder Turnaround Takes Longer
Published by Uma Rajagopal
Posted on November 7, 2024
2 min readLast updated: January 29, 2026
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Company
Published by Uma Rajagopal
Posted on November 7, 2024
2 min readLast updated: January 29, 2026
Add as preferred source on GoogleBy Jaspreet Singh
(Reuters) -Match Group projected fourth-quarter revenue below Wall Street estimates on Wednesday, signaling that a turnaround of its dating apps including Tinder would take longer and sending shares of the company down more than 13% in extended trading.
The company also missed third-quarter revenue estimates. Smaller rival Bumble, meanwhile, posted its first decline in quarterly sales since going public in 2021 and also said it would take longer for its app revamp to payoff.
Match’s weak results could give activist investors including Starboard Value, Elliott Investment Management and Anson Funds Management more ammunition in their efforts to spur change at the company that has been grappling with slow growth for two years.
After hitting peaks during the pandemic, Match has seen a slowdown in demand as economic uncertainty and a lack of new features prompt people to cut back on spending on its dating apps, which also include Hinge, OkCupid and Plenty of Fish.
The company expects revenue between $865 million and $875 million for the fourth quarter, compared with analysts’ average estimate of $905.4 million, according to data compiled by LSEG.
Total paying users declined 3% to 15.2 million in the third quarter, marking an eighth straight quarter of decline.
Match said it expects a mid-single digit decline in paying users for Tinder in the fourth quarter from a year ago.
“We expect to see tangible markers of improvement as Tinder’s new features roll out over the coming quarters,” CEO Bernard Kim said.
Tinder remains the largest among the dating apps cohort so far this year with 36% of total monthly active users in the United States, followed by Hinge and Bumble with 22% each, according to market intelligence firm Sensor Tower.
Hinge remained a bright spot for the company in the third quarter, with revenue rising 36% to $145.4 million and payers increasing by 21%.
Match’s third-quarter revenue grew 2% to $895 million, missing estimates of $900.9 million. Profit per share was 51 cents, compared with estimates of 48 cents.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
Market capitalisation refers to the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current share price by the total number of shares.
Economic uncertainty refers to the unpredictability in the economy, which can affect consumer behavior, business investment, and overall market conditions, often leading to cautious spending.
User trend analysis involves examining data on user behavior and preferences over time to identify patterns that can inform business strategies and product development.
A turnaround strategy is a plan implemented by a company to reverse negative performance trends, improve profitability, and stabilize operations, often involving restructuring and innovation.
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