Match Group, the parent company of the online dating platform Tinder, has seen a spike in their quarterly revenue estimates. The growth estimates are backed up by a rise in demand for Tinder’s paid services. The company’s revenue came in at $810 million, surpassing the analyst estimate of $ 793 million, for the July to September quarter, reported news agency Reuters.
The positive quarterly resulted in the company’s share gaining over 16 per cent intraday on Tuesday. The company also own shares in other online dating platforms like Hinge and OkCupid. The growing business for Tinder’s parent company even as other tech brands including giants like Meta, Alphabet and Microsoft billions wiped off their values as fears of a global slowdown hit the world’s biggest tech companies.
The growth for Match Group is despite executive changes, as well as analyst concerns about poor execution of new features on its dating apps. Other than that, the spike in inflation has shown a decrease in spending on dating apps. Yet, Tinder’s revenue grew by 6 per cent. Its paying subscriptions also saw a jump of 7 per cent. However, Match Group has predicted a flat growth in the fourth-quarter revenue for Tinder.
Tinder is yet to get a new CEO after the unexpected exit of Renate Nyborg in August this year
Chief Executive Bernard Kim and Finance Chief Gary Swidler suggested that a weakening global economy was taking a toll on Match’s brands that serve lower-income consumers. It is also the cause behind why people have been exercising more discretion on their spending across its apps.
To tackle this issue, Match Group is planning a reduction in headcount-related expenses and marketing spending. This is expected to bring flat margins in 2023. The company’s share on Tuesday traded at $51.21, a decline of 66.1 per cent for the year so far.
Match has also predicted their fourth-quarter revenue to be between $780 million and $790 million. It is below the market estimates of $809.2 million (over ₹66 Billion).
In their letter to shareholders, the Chief Executive and Finance Chief also mentioned that they are already seeing an improvement in product execution.
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