On Wednesday, Match Group (NASDAQ: MTCH) forecast fourth-quarter revenue below Wall Street estimates, a sign of weak demand for its dating apps as customers cut back on discretionary spending, sending its shares down about 11% in extended trading.
The Dallas, Texas-based company also missed third-quarter revenue estimates unlike its smaller rival Bumble (NASDAQ: BMBL), which reported upbeat quarterly revenue on the back of efforts including the launch of a refreshed Bumble app.
Growth has slowed at Match from the peaks hit during the pandemic, as economic uncertainty and a lack of new features prompt people to cut back on spending on its dating apps.
Match Group (NASDAQ: MTCH) offers dating app services including Tinder, 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, the company said, marking an eighth straight quarter of decline.
Match said it expects a mid-single-digit decline in paying users for Tinder – its most popular app – in the fourth quarter from a year ago.
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.
Third-quarter revenue of Match grew 2% to $895 million, missing estimates of $900.9 million.
The company reported a third-quarter profit per share of 51 cents, compared with estimates of 48 cents.
(Source: Reuters)
