Latest news with #ChandlerWillison
Time of India
6 days ago
- Business
- Time of India
Match Group posts revenue above estimates as it looks to lure Gen Z with AI push
Tinder-parent Match Group 's second-quarter revenue surpassed Wall Street expectations on Tuesday, buoyed by strong performance at Hinge and a renewed strategic focus under new CEO Spencer Rascoff . Shares of the company rose about 10% in extended trading. The company credited its revenue beat to the ongoing overhaul, which places greater emphasis on enhancing user experience , including the integration of an "AI-powered core discovery algorithm," to attract and retain users. "We're starting to see some of the early benefits from Match Group's AI initiatives. And improvements in recommendations and other aspects of user interaction," said M Science analyst Chandler Willison. Despite the topline growth, Match Group reported a 5% decline in paying users to 14.1 million, reflecting broader headwinds in the online dating sector. Industry peers, including Bumble , have also faced sluggish demand as persistent inflation and a perceived lack of innovation have prompted some consumers to step back from app-based dating. In response, Match and Bumble have been focusing on user experience over numbers by introducing artificial intelligence features such as AI-enabled discovery to make it easier for users to improve their dating outcomes. The company is seeking to revamp its brand image, with a stated goal to "transform Tinder into a low-pressure, serendipitous experience designed for Gen Z." Match, which also owns Hinge and OkCupid, has rolled out new features such as its AI-enabled interactive matching product to cater to the Gen Z audience. The company further said it plans to reinvest approximately $50 million in the second half of 2025 into strategic initiatives, including product testing at Tinder and geographic expansion for Hinge, Azar and The League. For the second quarter, the company posted revenue of $864 million, above analysts' expectations of $853.6 million, according to data compiled by LSEG. This excludes a one-time charge of $14 million. The company sees third-quarter revenue between $910 million and $920 million, above estimates of $890.3 million.
Time of India
6 days ago
- Business
- Time of India
Match Group posts revenue above estimates as it looks to lure Gen Z with AI push
Tinder-parent Match Group 's second-quarter revenue surpassed Wall Street expectations on Tuesday, buoyed by strong performance at Hinge and a renewed strategic focus under new CEO Spencer Rascoff . Shares of the company rose about 10% in extended trading. The company credited its revenue beat to the ongoing overhaul, which places greater emphasis on enhancing user experience , including the integration of an "AI-powered core discovery algorithm," to attract and retain users. "We're starting to see some of the early benefits from Match Group's AI initiatives. And improvements in recommendations and other aspects of user interaction," said M Science analyst Chandler Willison. Despite the topline growth, Match Group reported a 5% decline in paying users to 14.1 million, reflecting broader headwinds in the online dating sector. Industry peers, including Bumble , have also faced sluggish demand as persistent inflation and a perceived lack of innovation have prompted some consumers to step back from app-based dating. In response, Match and Bumble have been focusing on user experience over numbers by introducing artificial intelligence features such as AI-enabled discovery to make it easier for users to improve their dating outcomes. The company is seeking to revamp its brand image, with a stated goal to "transform Tinder into a low-pressure, serendipitous experience designed for Gen Z." Match, which also owns Hinge and OkCupid, has rolled out new features such as its AI-enabled interactive matching product to cater to the Gen Z audience. The company further said it plans to reinvest approximately $50 million in the second half of 2025 into strategic initiatives, including product testing at Tinder and geographic expansion for Hinge, Azar and The League. For the second quarter, the company posted revenue of $864 million, above analysts' expectations of $853.6 million, according to data compiled by LSEG. This excludes a one-time charge of $14 million. The company sees third-quarter revenue between $910 million and $920 million, above estimates of $890.3 million.
Reuters
6 days ago
- Business
- Reuters
Bumble's paying user drop sparks concerns over pace of AI-driven revamp
Aug 6 (Reuters) - Bumble's (BMBL.O), opens new tab paying users fell in the second quarter, the dating app operator said on Wednesday, clouding hopes of a quick turnaround and sending its shares slumping 8% in extended trading. The company, which operates an eponymous app, has turned to artificial intelligence to combat the "dating fatigue" that has plagued the industry. Analysts, however, say Bumble has trailed bigger rival Tinder-parent Match Group (MTCH.O), opens new tab as many of the company's efforts remain in early testing phases. The dating app's total paying users decreased by 8.7% to 3.8 million in the second quarter. "The primary concern at this stage remains the headwinds in paying user growth, which Bumble needs to address to re-engage its core audience," said Chandler Willison, research analyst at M Science. In the three-month period to June, the company posted a net loss of $367.0 million, including $404.9 million of non-cash impairment charges, compared to a net profit of $37.7 million, a year earlier. The company, which named a new chief financial officer, did not specify the reasons behind its one-time cost. In its bet to provide real connections, Bumble has introduced a new coaching hub powered by both human expertise and artificial intelligence. The company said on Wednesday it would introduce an all-new Bumble BFF application this month to woo Gen Z customers and will also have new community-focused events to help users build offline friendships. Bumble posted second-quarter revenue of $248.2 million, compared with analysts' average estimate of $245.1 million, according to data compiled by LSEG. The company said Kevin Cook, who was recently financial head at data management platform Cloudera, would succeed interim CFO Ronald Fior, effective August 12. Bumble forecast third-quarter revenue between $240 million and $248 million, largely above analysts' estimates of $241.4 million, according to data compiled by LSEG.
CNA
6 days ago
- Business
- CNA
Bumble's paying user drop sparks concerns over pace of AI-driven revamp
Bumble's paying users fell in the second quarter, the dating app operator said on Wednesday, clouding hopes of a quick turnaround and sending its shares slumping 8 per cent in extended trading. The company, which operates an eponymous app, has turned to artificial intelligence to combat the "dating fatigue" that has plagued the industry. Analysts, however, say Bumble has trailed bigger rival Tinder-parent Match Group as many of the company's efforts remain in early testing phases. The dating app's total paying users decreased by 8.7 per cent to 3.8 million in the second quarter. "The primary concern at this stage remains the headwinds in paying user growth, which Bumble needs to address to re-engage its core audience," said Chandler Willison, research analyst at M Science. In the three-month period to June, the company posted a net loss of $367.0 million, including $404.9 million of non-cash impairment charges, compared to a net profit of $37.7 million, a year earlier. The company, which named a new chief financial officer, did not specify the reasons behind its one-time cost. In its bet to provide real connections, Bumble has introduced a new coaching hub powered by both human expertise and artificial intelligence. The company said on Wednesday it would introduce an all-new Bumble BFF application this month to woo Gen Z customers and will also have new community-focused events to help users build offline friendships. Bumble posted second-quarter revenue of $248.2 million, compared with analysts' average estimate of $245.1 million, according to data compiled by LSEG. The company said Kevin Cook, who was recently financial head at data management platform Cloudera, would succeed interim CFO Ronald Fior, effective August 12. Bumble forecast third-quarter revenue between $240 million and $248 million, largely above analysts' estimates of $241.4 million, according to data compiled by LSEG.
Business Times
26-06-2025
- Business
- Business Times
Bumble to lay off 30% of global workforce as dating apps struggle
[BENGALURU] Bumble said on Wednesday (Jun 25) it would lay off nearly a third of its workforce, the latest cuts in a dating app industry striving to develop features that will keep users spending amid economic uncertainty. The company also raised its second-quarter revenue forecast, as a broader effort to revamp the platform starts to take hold. The job cuts will affect 240 roles, or 30 per cent of Bumble's staff. Rival Match also announced a 13 per cent workforce reduction last month. Bumble shares rose 19 per cent on the news, but their market value has shrunk by about a fifth this year to a little over US$500 million. Its peak was around US$15 billion, when the company went public in 2021, LSEG data shows. The 'layoffs reflect Bumble's new strategy of optimising for user experience rather than revenue or user growth in the short term', and underscores new CEO Whitney Wolfe Herd's desire for a more agile startup structure, said M Science analyst Chandler Willison. Online dating firms have struggled in recent years to retain audiences, especially Gen Z users, leading to management overhauls at Match and Bumble as well as pressure from activist investors. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Bumble's Herd returned as CEO earlier this year with the promise of boosting the company's performance by focusing on match-making quality. The company raised its second-quarter revenue forecast to a range of US$244 million to US$249 million, up from the prior view of US$235 million to US$243 million. It had also met Wall Street expectations for first-quarter revenue in May, even as it posted a 7 per cent decline. Bumble said it will incur about US$13 million to US$18 million in layoff-related charges, primarily in the third and fourth quarters of 2025. It expects to save about US$40 million of annual costs, which it plans to reinvest in initiatives such as product and technology development. REUTERS
