Match posts sixth straight decline in Tinder users; shares fall

MATCH Group said the number of paying users on Tinder, its largest dating app, fell for the sixth straight quarter. Shares slid 5 per cent.

Paying customers on the platform were down 9 per cent from a year earlier, totalling “under 10 million” in the first quarter, the Dallas-based company said on Tuesday (May 7). Analysts had projected roughly 9.8 million users. The company attributed the loss to pricing changes it made last year as well as a fall-off in active users.

Match, which also runs the dating platform Hinge, has struggled to retain paid subscribers for more than a year and is facing increasing pressure to deliver a turnaround. In March, the company named two new directors to its board after holding discussions with activist investor Elliott Investment Management and signed an information-sharing agreement with the fund run by billionaire Paul Singer.

Tinder “continues to face headwinds”, Match chief executive officer Bernard Kim said in a letter to shareholders, “due in part to weaker consumer discretionary spending”. He said that the company is working on improving the Tinder experience, especially for women and Generation Z users, and he expects user declines to slow “in the back half of the year”.

In an effort to bolster profits, the company has tried tiered subscription models and niche dating apps, such as Archer for gay, bisexual and queer men and The League, aimed at career-minded singles.

But its forecasts have continued to disappoint: Match projected on Tuesday that second-quarter revenue would range from US$850 million to US$860 million, far below analysts’ estimates. It expects adjusted operating income of US$300 million to US$305 million, also below projections.

Match’s shares have lost more than 13 per cent of its value this year. The stock was down 5 per cent at US$30.04 in after-market trading on Tuesday. Match rival Bumble has fared even worse, with its shares falling 30 per cent in 2024. BLOOMBERG