Dating app Tinder 's parent company, Match Group , is reportedly taking on major cost-cutting measures. This includes a 13% reduction in the company’s workforce, following a 5% decrease in paying users during the first quarter, a report claims. According to a report by the news agency Reuters, this announcement led to a 7% drop in the company's shares as investors reacted to the decline in subscribers, despite the company's first-quarter results surpassing estimates. The job cuts represent the first major strategic move under the new CEO, Spencer Rascoff, who assumed leadership in February with the primary goal of addressing the slowing pace of user engagement across Match Group's various dating platforms, the report added. However, the report didn’t confirm the total number of employees or the division in the company that will be affected.
The online dating industry may have hit a rough patch
As per the report, the online dating sector is struggling as ongoing inflation, lack of new features and overall market stagnation are driving users away from apps like Tinder and Bumble .
In Match Group’s latest earnings report, its portfolio of apps—including Tinder, Hinge , and OkCupid—saw its paid user base drop from 14.9 million a year ago to 14.2 million in Q1.
The report cited Chandler Willison, a research analyst at M Science, to note that since paid subscribers are key to these apps’ revenue, the recent decline has dampened investor sentiment, even though the company’s overall financial outlook remains solid.
Match still projects Q2 revenue of $850–860 million, slightly above the $846.7 million consensus estimate compiled by LSEG, the report adds.
Meanwhile, some investors noted that they have spent more than a year asking Match to rethink its capital allocation, cut costs, and possibly review the strategic direction of its MG Asia division.
In response, Match and Bumble have been updating their apps and rolling out AI-driven features, like smart discovery tools, to enhance the user experience.
"Product enhancements are the critical lever to return to payer growth," Michael Ashley Schulman, CFA at Running Point Capital, said to Reuters.
However, the company’s Q1 revenue fell 3% year-over-year to $831 million, surpassing the $827.5 million prediction. To compare, rival Bumble saw its first-quarter revenue drop by over 7%, but still met analysts’ expectations.
The online dating industry may have hit a rough patch
As per the report, the online dating sector is struggling as ongoing inflation, lack of new features and overall market stagnation are driving users away from apps like Tinder and Bumble .
In Match Group’s latest earnings report, its portfolio of apps—including Tinder, Hinge , and OkCupid—saw its paid user base drop from 14.9 million a year ago to 14.2 million in Q1.
The report cited Chandler Willison, a research analyst at M Science, to note that since paid subscribers are key to these apps’ revenue, the recent decline has dampened investor sentiment, even though the company’s overall financial outlook remains solid.
Match still projects Q2 revenue of $850–860 million, slightly above the $846.7 million consensus estimate compiled by LSEG, the report adds.
Meanwhile, some investors noted that they have spent more than a year asking Match to rethink its capital allocation, cut costs, and possibly review the strategic direction of its MG Asia division.
In response, Match and Bumble have been updating their apps and rolling out AI-driven features, like smart discovery tools, to enhance the user experience.
"Product enhancements are the critical lever to return to payer growth," Michael Ashley Schulman, CFA at Running Point Capital, said to Reuters.
However, the company’s Q1 revenue fell 3% year-over-year to $831 million, surpassing the $827.5 million prediction. To compare, rival Bumble saw its first-quarter revenue drop by over 7%, but still met analysts’ expectations.
