Tinder’s firm is ignoring the tech downturn as more individuals pay to find love
Tinder’s parent firm, Match Group, topped revenue estimates last quarter as more users sought premium matches for paid memberships on the popular dating app.
Their results were an aberration in a quarter of the dismal performance of some of the most significant technological businesses in the United States. Match Group, which owns Hinge and OkCupid among other dating applications, saw its shares soar 16% on Tuesday.
Tinder, which has been shaken by leadership changes this year, will benefit from the outcome. Renate Nyborg, the company’s CEO, resigned in August after less than a year on the job. Inflationary pressures and cost-of-living concerns have also dampened app buying.
Despite the odds, Match Group’s revenue in the three months to September 30 was $810 million, above the average analyst forecast of $793 million, according to Refinitiv data.
However, Tinder’s revenue is expected to stay unchanged in the following quarter, according to the business.
The company’s CEO, Bernard Kim, and CFO, Gary Swidler, both cautioned that a sluggish global economy was impacting Match companies that target low-income clients, as well as discretionary spending on their applications.
The reinstatement of a feature that enables individuals to use the app on their desktop computers raised the number of premium Tinder users by 7% and revenue by 6%. Tinder’s premium membership service is divided into three levels, each providing users with limitless likes and, in certain cases, the option to view who has “liked” them.
Fears of a worldwide recession slammed the world’s largest technology firms last week, wiping away the values of Meta, Alphabet, and Microsoft. The five biggest technology stocks lost a total of $950 billion at their lowest point.
Match plans to address the upcoming downturn by cutting headcount-related expenditures and marketing spending. The firm also said it is seeking a new Tinder CEO, which is still open.