Tinder parent Match cuts 13% of workforce, forecasts revenue above estimates
FILE PHOTO: The dating app Tinder is shown on a mobile phone in this picture illustration taken September 1, 2020. REUTERS/Akhtar Soomro/Illustration/File Photo
(Reuters) - Match Group on Thursday forecast second-quarter revenue above Wall Street estimates and said it would reduce 13% of its workforce to cut costs, as the Tinder parent plows ahead with its business revamp plan.
The layoffs are the first major structural change at Match since new CEO Spencer Rascoff took the helm in February and was tasked with tackling a slowdown in user engagement.
The online dating industry has hit a rough patch as persistent inflation and a lack of innovative features prompted consumers to move away from dating apps such as Tinder and Bumble.
In response, Match and Bumble have been refining their applications and introducing artificial intelligence features such as AI-enabled discovery to make it easier for users to improve their dating outcomes.
Match, which also owns dating apps Hinge and OkCupid, has introduced features such as "double date" and Game Game, which was a voice-based experience that allowed users to practice flirting with an AI date, to better cater to Gen-Z audiences.
The double-date feature, which allows users to team up with a friend and match with other pairs, is resonating with its younger audience, with 90% double-date profiles from users under 29, CEO Rascoff said.
Its revenue per paid user increased to $19.07 from $18.87 a year ago.
For the second quarter, the company forecast revenue between $850 and $860 million, above analysts' average estimates of $846.7 million, according to data compiled by LSEG.
Match is also testing new features to boost its security and verification programs and has seen a more than 15% reduction in bad actor reports.
For the quarter ended March 31, the company's revenue declined by 3% to $831 million, beating estimates of $827.5 million.
Rival Bumble on Wednesday reported a more than 7% fall in first-quarter revenue, but met market estimates.
(Reporting by Kritika Lamba in Bengaluru; Editing by Devika Syamnath)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
X plays up blue checkmark disclaimer to stave off possible EU fine, source says
The new logo of Twitter is seen in this illustration taken, July 24, 2023. REUTERS/Dado Ruvic/Illustration/File Photo BRUSSELS (Reuters) -Elon Musk's social media company X has highlighted a disclaimer to its blue checkmark in an attempt to head off a possible hefty fine from EU antitrust regulators, a person familiar with the matter said. The European Commission in July last year charged X with deceiving users, saying that the blue checkmark does not correspond to industry practices and that anyone can pay to get a "verified" status. The blue checkmark had previously indicated that an account belonged to a public figure whose identity was verified but Musk changed it to indicate it belonged to a paid subscriber after acquiring X in 2022. X has not admitted wrongdoing and the prominent display of the blue checkmark disclaimer is not part of any settlement proposal with the EU tech enforcer, the person said. The prominent display started a week ago. The Commission said it took note of X's announcement. "Our investigation related to the blue checkmark is ongoing," a spokesperson said. X did not immediately respond to an emailed request for comment. The EU probe is under the Digital Services Act which requires large online platforms to do more to tackle illegal and harmful content or risk fines as much as 6% of their global annual revenue. Bloomberg was the first to report on the blue checkmark disclaimer. (Reporting by Foo Yun Chee; editing by David Evans)
The Sun
4 hours ago
- The Sun
Contraceptives for poorest countries stuck in warehouses after US aid cuts
LONDON: Contraceptives that could help prevent millions of unwanted pregnancies in some of the world's poorest countries are stuck in warehouses because of U.S. aid cuts and could be destroyed, two aid industry sources and one former government official said. The stock, held in Belgium and Dubai, includes condoms, contraceptive implants, pills and intrauterine devices, together worth around $11 million, the sources told Reuters. It has been stalled since the Trump administration started cutting foreign aid as part of its 'America First' policy in February, as the U.S. government no longer wants to donate the contraceptives or pay the costs for delivery, they said. The U.S. Agency for International Development (USAID) has instead asked the contractor managing its health supply chain, Chemonics, to try to sell it, two of the sources said. An internal USAID memo, sent in April, said a quantity of contraceptives was being kept in warehouses and they should be 'immediately transferred to another entity to prevent waste or additional costs'. A senior U.S. State Department official told Reuters no decision had been made about the future of the contraceptives. They did not respond to questions about the reasons why the contraceptives were in storage or the impact of the U.S. aid cuts and delays. A spokesperson for Chemonics said they were unable to comment on USAID's plans, but added that the company is working with clients to deliver life-saving aid globally and would continue to support the U.S. government's global health supply chain priorities. The stock represents just under 20% of the supply of contraceptives bought annually by the U.S. for donation overseas, a former USAID official told Reuters. Selling or donating the contraceptives has been challenging, according to the former USAID official, although talks are ongoing. Another option on the table is destroying it, at a cost of several hundred thousand dollars. As time goes on, shelf-lives will also become an issue, one of the sources said. The sources told Reuters that one of the key delays is a lack of response from the U.S. government about what should be done with the stock. It had been destined largely for vulnerable women in sub-Saharan Africa, including young girls who face higher health risks from early pregnancy as well as those fleeing conflict or who otherwise could not afford or access the contraceptives, the sources added. The condoms also help stop the spread of HIV, the former USAID official said. 'We cannot dwell on an issue for too long; when urgency and clarity don't align, we have to move on,' said Karen Hong, chief of UNFPA's supply chain. She said the agency is now working on Plan B to help fill critical supply gaps.
The Sun
4 hours ago
- The Sun
$11m in contraceptives stalled after U.S. aid cuts
LONDON: Contraceptives that could help prevent millions of unwanted pregnancies in some of the world's poorest countries are stuck in warehouses because of U.S. aid cuts and could be destroyed, two aid industry sources and one former government official said. The stock, held in Belgium and Dubai, includes condoms, contraceptive implants, pills and intrauterine devices, together worth around $11 million, the sources told Reuters. It has been stalled since the Trump administration started cutting foreign aid as part of its 'America First' policy in February, as the U.S. government no longer wants to donate the contraceptives or pay the costs for delivery, they said. The U.S. Agency for International Development (USAID) has instead asked the contractor managing its health supply chain, Chemonics, to try to sell it, two of the sources said. An internal USAID memo, sent in April, said a quantity of contraceptives was being kept in warehouses and they should be 'immediately transferred to another entity to prevent waste or additional costs'. A senior U.S. State Department official told Reuters no decision had been made about the future of the contraceptives. They did not respond to questions about the reasons why the contraceptives were in storage or the impact of the U.S. aid cuts and delays. A spokesperson for Chemonics said they were unable to comment on USAID's plans, but added that the company is working with clients to deliver life-saving aid globally and would continue to support the U.S. government's global health supply chain priorities. The stock represents just under 20% of the supply of contraceptives bought annually by the U.S. for donation overseas, a former USAID official told Reuters. Selling or donating the contraceptives has been challenging, according to the former USAID official, although talks are ongoing. Another option on the table is destroying it, at a cost of several hundred thousand dollars. As time goes on, shelf-lives will also become an issue, one of the sources said. The sources told Reuters that one of the key delays is a lack of response from the U.S. government about what should be done with the stock. It had been destined largely for vulnerable women in sub-Saharan Africa, including young girls who face higher health risks from early pregnancy as well as those fleeing conflict or who otherwise could not afford or access the contraceptives, the sources added. The condoms also help stop the spread of HIV, the former USAID official said. 'We cannot dwell on an issue for too long; when urgency and clarity don't align, we have to move on,' said Karen Hong, chief of UNFPA's supply chain. She said the agency is now working on Plan B to help fill critical supply gaps.
