May 7 (Reuters) - Tinder-parent Match Group ( MTCH )
forecast second-quarter revenue below Wall Street estimates on
Tuesday, as users are likely to dial back spending on dating
apps.
Match Group ( MTCH ) - which offers dating apps services such as
Hinge, Tinder, OkCupid and Plenty of Fish, among others - has
been grappling with slowing revenue due to weaker discretionary
spending by users in an uncertain economy.
The company also faces stiff competition from smaller rival
Bumble's eponymous dating app and social media
companies including Meta Platforms ( META )-owned Facebook and
Instagram.
Dating app operators have remained under pressure, with
Match's stock dropping about 14% while its rival Bumble has
fallen around 30%, as of Tuesday's close, on concerns of slowing
growth.
In the first quarter, global Tinder downloads fell 6% from a
year earlier, the third consecutive quarter of decreasing
downloads, while download growth at Hinge rose 18%, according to
market intelligence firm Sensor Tower on Monday.
Total monthly active users (MAUs) for Tinder dropped 21%
globally in the reported quarter from the prior year, while the
MAUs fell 17% in the United States, Sensor Tower added.
"Tinder continues to see pressure on MAU and is also facing
increasing pressure on à la carte revenue, due in part to weaker
consumer discretionary spending," CEO Bernard Kim said in a
letter to shareholders.
The company's payers declined 6% to 14.9 million in the
quarter ended March 31 from a year earlier.
It expects revenue in the range of $850 million to $860
million for the second quarter ending in June, the mid-point of
which is below analysts' average estimate of $882 million,
according to 23 analysts polled by LSEG.
Match's first-quarter revenue grew 9% to $859.6 million,
beating estimates of $855.5 million.