Tinder parent Match topped quarterly revenue estimates as more users looking for matches and connections took to paid subscriptions to dating app Tinder, sending shares of the company up 16 percent on Tuesday. The results are welcome news for the company, which has been rocked this year by analysts’ concerns about executive changes and poor execution of new features on its dating apps. Rising inflation has also put pressure on its apps to spend. Despite the odds, according to Refinitiv data, the company’s revenue for the three months ended September 30 came in at $810 million (about Rs 6,700 crore), beating the average analyst estimate of $793 million (about Rs 6,560 crore).
of tinder Revenue grew 6 percent and its paying users jumped 7 percent, aided by the return of a feature that lets users swipe right and left from their desktops. However, the company forecast flat fourth quarter revenue growth for Tinder.
“Product execution is already improving,” Chief Executive Bernard Kim and Finance Chief Gary Swidler said in a letter to shareholders.
But he warned that a weakening global economy is affecting Match’s brands that serve low-income consumers, while also weighing discretionary spending on its apps.
Plans to tackle the slowdown with reductions in headcount-related expenses and marketing spend and are expected to have flat margins in 2023.
The company’s shares were trading at $ 51.21 (about Rs 4,240) in extended trading. These have fallen by 66.1 per cent so far this year.
Match estimates between $780 million (approximately Rs 6,450 crore) and $790 million (approximately Rs 6,540 crore) in fourth-quarter revenue, lower than the market estimate of $809.2 million (approximately Rs 6,700 crore), as it is expected to pick up an additional $14 million. (roughly Rs.115 crore) was impacted by a stronger than previously expected US dollar.
The company said the search is on for the CEO of Tinder, which has been vacant since the sudden departure of Rennet Nyborg in August.
© Thomson Reuters 2022