Tinder parent Match’s quarterly revenue beat estimates as more users made paid subscriptions on the dating app Tinder, sending its shares up 16% on Tuesday. The results are good news for the company, which has been rocked this year by executive changes and analyst concerns about the poor execution of new features in its dating app. Soaring inflation has also weighed on spending on its apps. Despite the difficulties, the company posted revenue of $810 million (about 67 billion rupees) in the three months ended September 30, beating analysts’ average estimate of $793 million (about 656 million rupees), according to Refinitiv data. billion rupees).
Tinder’s revenue rose 6% and its paying users grew 7%, helped by the return of a feature that lets users swipe left and right on the desktop. However, the company expects Tinder’s fourth-quarter revenue to show flat growth.
“Product execution is already improving,” CEO Bernard King and Treasurer Gareth Widler said in a letter to shareholders.
But they warned that a weakening global economy was hitting Match, a brand that serves lower-income consumers, while also impacting discretionary spending on its app.
Match plans to combat the economic slowdown by reducing headcount-related expenses and marketing spending, and expects flat margins in 2023.
Shares of the company were trading at $51.21 (about Rs 4,240) in extended trading. They have fallen 66.1% so far this year.
Match forecast fourth-quarter revenue of between $780 million (approximately Rs 6,450 crore) and $790 million (approximately Rs 6,540 crore), missing consensus estimates of $809.2 million (approximately Rs 6,700 crore) as it expected an additional 1,400 crore US$10,000 (roughly Rs 1.15 crore) was hit by a stronger dollar, higher than previously expected.
The company added that it was looking for a Tinder CEO, which has been vacant since Renate Nyborg’s abrupt departure in August.
© Thomson Reuters 2022