Tinder's revenue increased by 6 percent, while its paying users rose by 7 percent, according to parent firm Match.
The weakening global economy is hitting Match's brands
Photo Credit: Facebook/ Tinder
Tinder parent Match topped quarterly revenue estimates as more users looking for matches and connections took paid subscriptions on dating app Tinder, sending the company's shares up 16 percent on Tuesday. The results are welcome news for the company which has been rocked this year by executive changes and analyst concerns about poor execution of new features on its dating apps. Spiralling inflation has also pressured spending on its apps. Despite the odds, the company's revenue came in at $810 million (roughly Rs. 6,700 crore) for the three months ended September 30, beating the average analyst estimate of $793 million (roughly Rs. 6,560 crore), according to Refinitiv data.
Tinder's 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. The company, however, forecast flat growth in fourth-quarter revenue for Tinder.
"Product execution is already improving," Chief Executive Bernard Kim and finance chief Gary Swidler said in a letter to shareholders.
But they warned that a weakening global economy was hitting Match's brands that serve lower-income consumers, while also weighing on discretionary spending across its apps.
Match plans to tackle the slowdown with reductions in headcount-related expenses and marketing spend and expects to have flat margins in 2023.
Shares of the company were trading at $51.21 (roughly Rs. 4,240) in extended trading. They have declined 66.1 percent so far this year.
Match forecast fourth-quarter revenue between $780 million (roughly Rs. 6,450 crore) and $790 million (roughly Rs. 6,540 crore), below market estimates of $809.2 million (roughly Rs. 6,700), as it expects to take an additional $14 million (roughly Rs. 115 crore) hit from a stronger US dollar than it had previously expected.
The company added that a search was ongoing for Tinder CEO, a position vacant since the sudden departure of Renate Nyborg in August.
© Thomson Reuters 2022
For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.