Nov 4 (Reuters) - Match Group ( MTCH ) forecast
fourth-quarter revenue below analysts' estimates on Tuesday,
underscoring ongoing challenges in its turnaround efforts as the
Tinder parent struggles to convert casual swipers into loyal,
paying users.
The company, which also owns popular dating platforms
OkCupid and Plenty of Fish, has invested heavily in rolling out
new features and integrating advanced artificial intelligence
features designed to revitalize user engagement and bolster
security. However, these efforts have yet to produce substantial
gains, with user growth falling short of expectations.
The online dating sector itself is grappling with "swiping
fatigue," pushing younger consumers to seek more interactive and
meaningful ways to connect.
This shift has reshaped the online dating industry, leading
to a fragmented market and intensifying competition. Rivals such
as Bumble, along with numerous niche apps, are forced
to rapidly evolve their offerings to better align with changing
user demands.
Match Group's ( MTCH ) ambitious AI-driven security enhancements,
which include facial verification and automated profile
authenticity checks aimed at addressing growing concerns over
fake profiles and online dating safety, have been widely praised
as industry-leading, but so far have not translated into
measurable improvements in user engagement or retention.
For the third quarter, the company posted a 5% decrease in
its paying users to 14.5 million.
While Hinge, often hailed as Match's rising star, continues
to demonstrate robust growth, it remains too small to offset
broader struggles at Tinder, the company's flagship app.
The company forecasts fourth-quarter revenue between $865
and $875 million, widely missing analysts' estimates of $882.8
million, according to data compiled by LSEG.
Revenue for the third quarter came in at $914 million,
slightly below estimates of $915 million.