Tech

Tinder paying users up 7% as forecasts match Q4 revenue flat amid weak economy


Tinder parent Match topped quarterly revenue estimates as more users searching for connections and connections signed up for a paid subscription on the Tinder dating app, sending the company’s stock up 16% on Tuesday. The result is welcome news for the company that has been rocked this year by regulatory changes and analysts’ concerns about poor enforcement of new features on its dating apps. Soaring inflation has also put pressure on spending on their apps. According to Refinitiv data, the company’s revenue reached $810 million (about Rs 6,700.

Tinder’s Its revenue grew 6% and its paying users grew 7%, helped by the return of the feature allowing users to swipe right and left from their desktop. However, the company forecasts Tinder’s fourth-quarter revenue to grow flat.

“Product performance has improved,” CEO Bernard Kim and chief financial officer Gary Swidler said in a letter to shareholders.

But they warn that a weakening global economy is affecting Match’s brands that serve lower-income consumers, while also affecting discretionary spending across its apps.

Incorporates plans to address the slowdown by reducing employee-related costs and marketing spend, and is expected to have a flat profit margin by 2023.

The company’s shares traded at $51.21 (about Rs 4,240) in extended trading. They are down 66.1% so far this year.

Matching the Q4 revenue forecast between $780 million (approximately Rs 6,450) and $790 million (approximately 6,540 crore), below market estimate of $809.2 million (approximately Rs 6,700), as it an additional $14 million (about Rs. 115 crore) loss is expected from a stronger-than-expected US dollar.

The company added that a search is ongoing for the Tinder CEO, a position that has been vacant since the sudden departure of Renate Nyborg in August.

© Thomson Reuters 2022


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