Aug 5 (Reuters) - Tinder-parent Match Group's

second-quarter revenue surpassed Wall Street expectations on

Tuesday, buoyed by strong performance at Hinge and a renewed

strategic focus under new CEO Spencer Rascoff.

The company credited its revenue beat to the ongoing

overhaul, which places greater emphasis on enhancing user

experience, including the integration of an "AI-powered core

discovery algorithm," to attract and retain users.

Despite the topline growth, Match Group ( MTCH ) reported a 5%

decline in paying users to 14.1 million, reflecting broader

headwinds in the online dating sector.

Industry peers, including Bumble, have also faced

sluggish demand as persistent inflation and a perceived lack of

innovation have prompted some consumers to step back from

app-based dating.

In response, Match and Bumble have been focusing on user

experience over numbers by introducing artificial intelligence

features such as AI-enabled discovery to make it easier for

users to improve their dating outcomes.

The company is seeking to revamp its brand image, with a

stated goal to "transform Tinder into a low-pressure,

serendipitous experience designed for Gen Z."

Match, which also owns Hinge and OkCupid, has rolled out new

features such as its AI-enabled interactive matching product to

cater to the Gen Z audience.

The company further said it plans to reinvest approximately

$50 million in the second half of 2025 into strategic

initiatives, including product testing at Tinder and geographic

expansion for Hinge, Azar and The League.

For the second quarter, the company posted revenue of $864

million, above analysts' expectations of $853.6 million,

according to data compiled by LSEG. This excludes a one-time

charge of $14 million.