Match Group, which owns several dating apps including Tinder and Hinge, released its first-quarter earnings on Tuesday, reporting that Tinder’s paid user base declined for the sixth consecutive quarter. Hinge, on the other hand, has seen an increase in members willing to pay for the app. In the first quarter of 2024, Tinder had 10 million paying users, a 9% decrease from the previous year. At the same time, Hinge currently has 1.4 million paying users, a year-on-year increase of 31%.

Tinder’s decline was predictable due to the shift in dating app culture in recent years. Younger users are more interested in pursuing serious, long-term relationships rather than the casual hookups that Tinder is known for. Since its launch, Hinge has gained popularity among users looking for more substantive connections.

Chief Executive Bernard Kim said on a conference call with investors Wednesday morning that while Tinder has struggled to retain paying users, Hinge is on track to become a “billion-dollar business.” Hinge’s revenue has grown significantly over the past six years, with direct revenue rising to $124 million in the first quarter, a 50% increase from the previous year. In 2023 alone, Hinge brought in $396 million in revenue.

One problem Tinder currently faces is convincing members to see the value in its a la carte (ALC) features, or in-app purchases, which include Super Likes, Boosts, See Who Likes You, and more. ALC revenue accounts for approximately 20% of Tinder’s direct revenue. However, in the first quarter of 2024, ALC revenue fell 13%. This is in stark contrast to 2018’s record single-point purchase volumes.

Match Group Chief Financial Officer Gary Swidler acknowledged during the conference call that weak single-site revenue growth has been on a downward trend for quite some time. However, it has “become more severe recently” and “prevents us from performing well”.

“We believe the decline in ALC revenue stems from lower user numbers and lower average purchases, in part due to, among other things, weaker consumer discretionary spending among younger users,” Swidler said, adding that Tinder paying users are expected to grow at a similar rate The speed decreases. Interest rates for the second quarter. The company expects signs of improvement in the third quarter.

The main reason for adopting a la carte services is to satisfy the needs of price-sensitive Generation Z and help them attract the attention of potential partners at lower prices. Swidler added that Match said it would continue to roll out new a la carte features on Tinder “at affordable prices” in the coming quarters.

However, Tinder might not want to add more options and instead consider its sister dating app Hinge, which only offers two a la carte features: Boosts and Roses.

Tinder has made several attempts to improve the overall product experience, including adding new safety features like “Share My Dates,” where users can share their date plans with friends. Later this summer, the app will require everyone to include a facial photo on their profile. It will also launch an AI photo picker feature that selects the 10 best photos from a user’s camera roll to improve profile quality.

#Tinder #fails #Match #turns #Hinge

Leave a Reply

Your email address will not be published. Required fields are marked *