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Match Group expects quarterly revenue below estimates as spending on dating apps falls
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Match Group expects quarterly revenue below estimates as spending on dating apps falls
May 7, 2024 1:23 PM

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.

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