Key facts
- Match Group forecasts Q3 revenue of $885-$895 million, below estimates.
- The company cited declines in 'Everyone Everywhere' brands, including Azar and Pairs, as the reason for the weak outlook.
- Tinder's daily active user decline narrowed, and Hinge saw a 13% rise in monthly active users.
- Second-quarter revenue was $853 million, down 1%, with paying users falling 6%.
Match Group forecast third-quarter revenue below Wall Street estimates on Tuesday, overshadowing signs of improvement in its struggling Tinder app and continued growth at its Hinge dating app.
The weak outlook stems from the company's 'Everyone Everywhere' brands, including its Asia-based Pairs and Azar businesses, Chief Financial Officer Steve Bailey told Reuters.
Match now expects mid-teens percentage declines in 'Everyone Everywhere' revenue, compared with a low double-digit decline forecast in February, largely due to the Azar app redesign.
The company said it expects third-quarter revenue of $885 million to $895 million, with the midpoint coming in below analysts' estimates of $891.5 million, according to data compiled by LSEG.
Dating apps are betting on artificial intelligence-powered features to adapt to changing user preferences and improve matchmaking. Tinder is using AI to speed up product development and rolling out social features aimed at helping younger users make real-world connections. Its Events feature, piloted in Los Angeles in March, has hosted more than 60 gatherings.
The events product currently focuses on driving user growth rather than direct revenue, but is expected to become a revenue driver by 2027 and beyond, Bailey said.
Tinder's daily active user decline narrowed to 4% in the second quarter, the smallest percentage decline in 10 quarters. Hinge's global monthly active users rose 13%, driven by strong growth in its expansion markets.
Match reported second-quarter revenue of $853 million, down 1%, missing analysts' estimates of $856.8 million. Paying users fell 6% to 13.3 million, though revenue per payer rose 6% to $21.13.