Latest news with #Rascoff
CNBC
3 days ago
- Business
- CNBC
Match Group pops 10% as dating company shows early signs of a turnaround
Match Group shares popped more than 10% on Wednesday after the online dating company issued upbeat guidance and said new products are showing promise as it attempts to turnaround its business. The Dallas-based company said it expected revenues between $910 million and $920 million in the current quarter, beating a $890 million estimate from analysts polled by FactSet. "We are operating like a company that is just getting started, and we believe the best chapters of the category and company are still ahead," said CEO Spencer Rascoff during an earnings call Tuesday. "We are moving with urgency, we are obsessed with the product and we are building for the long term." Over the last year, Match and the broader online dating industry have grappled with slowing user engagement. The company has added more tools and features to its apps, including Tinder and Hinge, to lure back customers, especially Gen Z. Match has also been the target of activists investors such as Starboard Value, which has pushed the company to innovate, cut costs and improve profitability or consider going private. In an effort to revamp its business, Match appointed Zillow co-founder Rascoff as its new CEO in February. Under his direction, the company has implemented new artificial intelligence-powered tools and slashed roles. Match also added new features such as AI-powered discovery to many of its services and a double date feature on Tinder. Rascoff on Tuesday said that 90% or customers using this feature are under age 30. The company will also target the younger market with features geared toward college students and is planning to reinvest $50 million into new product development, Rascoff said. In 2026 and 2027, Rascoff said he expects AI innovation and international growth to expand its Hinge platform's leadership as Tinder becomes a "low-pressure, serendipitous experience designed for Gen Z." Hinge, he said, is also on track to deliver quarterly year-over-year growth in 2025. "Across the board, we believe the category will enter a new era, with renewed trust, strong demand and long-term growth potential," he said. Match posted in-line earnings of 49 cents per share. Revenues reached $864, topping the $854 million expected by analysts.
Business Insider
4 days ago
- Business
- Business Insider
One popular dating app is actually 'crushing it' right now
On Tuesday's earnings call for Hinge and Tinder parent Match Group, CEO Spencer Rascoff said that Hinge is an example of what can be achieved with a motivated team and a great product. "Simply put, Hinge is crushing it," Rascoff said. "Hinge's success should put to rest any doubts about whether the online dating category is out of favor among users." Match's chief financial officer, Steven Bailey, said that Hinge generated $168 million in revenue in the second quarter, a 25% increase from the same time last year. The dating app's paying users grew by 18% year over year to 1.7 million, and revenue per paying user grew 6% to nearly $32. Rascoff added that the company is following Hinge's formula in its turnaround plans for Tinder. The company did not disclose as many numbers for Tinder as it did for Hinge, but said the app's revenue was down 4%, to $461 million. "Hinge's success gives me pride in Hinge, but also confidence in Tinder," the CEO said. "At Hinge, everything ladders up to one north star: getting users on more great dates." Rascoff said that Hinge was successful because it keeps "intentionality" at the core of a user's dating experience and was using AI to craft "thoughtful high-quality responses, helping spark better first impressions." 'Numbers game' In a memo in March, Rascoff, who joined Match as CEO in February, said that Tinder and Hinge users feel that the company is too driven by metrics. "Too often, our apps have felt like a numbers game rather than a place to build real connections," Rascoff wrote, adding that this needs to change. "I've heard incredible stories of love," Rascoff said. "But I've also heard frustration from users searching for real, meaningful matches and expecting more from the experience." Rascoff's overhaul of the platforms follows a broader sentiment shift away from online dating. Swiping fatigue and the rising costs of going on dates are leading many users to ditch apps for outlets that allow in-person connections. Between May 2023 and the end of 2024, more than half a million users left Tinder, according to a report from the UK-based online behavior research group Ofcom. That's showing up in dating apps' bottom lines. On Tuesday, Match reported $864 million in second-quarter revenue, unchanged from the same time last year. It reported a 5% drop in operating profit to $194 million.
Business Insider
4 days ago
- Business
- Business Insider
One popular dating app is actually 'crushing it' right now
Hinge may be a bright spot in the fizzling online dating industry. On Tuesday's earnings call for Hinge and Tinder parent Match Group, CEO Spencer Rascoff said that Hinge is an example of what can be achieved with a motivated team and a great product. "Simply put, Hinge is crushing it," Rascoff said. "Hinge's success should put to rest any doubts about whether the online dating category is out of favor among users." Match's chief financial officer, Steven Bailey, said that Hinge generated $168 million in revenue in the second quarter, a 25% increase from the same time last year. The dating app's paying users grew by 18% year over year to 1.7 million, and revenue per paying user grew 6% to nearly $32. Rascoff added that the company is following Hinge's formula in its turnaround plans for Tinder. The company did not disclose as many numbers for Tinder as it did for Hinge, but said the app's revenue was down 4%, to $461 million. "Hinge's success gives me pride in Hinge, but also confidence in Tinder," the CEO said. "At Hinge, everything ladders up to one north star: getting users on more great dates." Rascoff said that Hinge was successful because it keeps "intentionality" at the core of a user's dating experience and was using AI to craft "thoughtful high-quality responses, helping spark better first impressions." 'Numbers game' In a memo in March, Rascoff, who joined Match as CEO in February, said that Tinder and Hinge users feel that the company is too driven by metrics. "Too often, our apps have felt like a numbers game rather than a place to build real connections," Rascoff wrote, adding that this needs to change. "I've heard incredible stories of love," Rascoff said. "But I've also heard frustration from users searching for real, meaningful matches and expecting more from the experience." Rascoff's overhaul of the platforms follows a broader sentiment shift away from online dating. Swiping fatigue and the rising costs of going on dates are leading many users to ditch apps for outlets that allow in-person connections. Between May 2023 and the end of 2024, more than half a million users left Tinder, according to a report from the UK-based online behavior research group Ofcom. That's showing up in dating apps' bottom lines. Revenue for rival app Bumble decreased 6.5% to $201.8 million in the first quarter of the year. Bumble reports its second-quarter earnings on Wednesday, August 6. On Tuesday, Match reported $864 million in second-quarter revenue, unchanged from the same time last year. It reported a 5% drop in operating profit to $194 million. Match's stock rose close to 7% after hours on Tuesday. The company is down 5.5% over the last year.
Business Insider
17-06-2025
- Entertainment
- Business Insider
Tinder's cure for Gen Z loneliness: A new feature for double dates with your bestie
The " loneliest generation" will now be able to add their emotional support friend to their Tinder profile. On Tuesday, the dating app launched "Double Date," a feature that allows you to create a joint profile with your bestie and swipe right on other pairs for a group date. Tinder hopes the new feature will be a hit with younger generations, especially Gen Z. Gen Z accounts for over half of its global user base, the company said. During testing, which began earlier this year, about 90% of Double Date profiles were under 29 years old. Tinder and its parent company, Match Group, need Gen Z more than ever. Match Group's new CEO, Spencer Rascoff, said one of the biggest problems facing dating apps like Tinder is the "failure to recognize and respond to" what younger generations want. "We have to build lower-pressure ways for Gen Z users to interact with each other," Rascoff said during the company's first quarter earnings call in May. He said he thinks new features like Double Date will "start to change user perception of Tinder." Gen Z's social dilemma A number of studies have found that Gen Z, typically considered those born between 1997 and 2012, is lonely. Nearly a quarter of adults ages 18 to 29 in the US said that they felt lonely, Pew Research Center reported in a September survey of over 6,000 participants. For comparison, 6% of adults 65 and older said the same. Coming of age in the pandemic meant fewer in-person interactions, and Gen Z is taking their transition into adulthood slow. They aren't rushing to marry and have children, according to Jean Twenge, a psychologist and the author of "Generations: The Real Differences Between Gen Z, Millennials, Gen X, boomers, and Silents — and What They Mean for America's Future." For Gen Z, dating has been largely defined by the chilling rejection felt from ghosting and the endless swiping on dating apps. In an effort to help navigate that, matches on Tinder's Double Date are put into a group chat of both pairs to coordinate a hangout. Tinder said it only requires one like per pair to match. Group dates can be a casual way to break the ice and explore a human connection before deciding if there's a romantic connection. Other startups, like Fourplay, have apps built entirely around group dating. Dating events, too, are en vogue as users experience dating app burnout and swap swiping for in-person connection. Tinder is not alone in vying for Gen Z. Bumble is also grappling with how to meet the generation's needs. "I think the reason Gen Z has abandoned the apps is because they're getting on the apps and they're not seeing who they want to see and they're feeling two things, which I take full accountability for at Bumble," Bumble's newly-returned CEO Whitney Wolfe Herd told The New York Times in May. "They're feeling rejected and they're feeling judged."
Yahoo
10-06-2025
- Business
- Yahoo
MTCH Q1 Earnings Call: Organizational Overhaul and Product Shifts Take Center Stage
Dating app company Match (NASDAQ:MTCH) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 3.3% year on year to $831.2 million. Its non-GAAP profit of $0.68 per share was 3.7% above analysts' consensus estimates. Is now the time to buy MTCH? Find out in our full research report (it's free). Revenue: $831.2 million vs analyst estimates of $827.6 million (3.3% year-on-year decline, in line) Adjusted EPS: $0.68 vs analyst estimates of $0.66 (3.7% beat) Adjusted EBITDA: $275.2 million vs analyst estimates of $264.1 million (33.1% margin, 4.2% beat) Operating Margin: 20.8%, in line with the same quarter last year Payers: 14.2 million, down 732,000 year on year Market Capitalization: $7.81 billion New CEO Spencer Rascoff opened Match Group's Q1 call by emphasizing major organizational changes, including a shift toward a unified, product-led structure and a 13% workforce reduction. Management attributed recent performance to a combination of cost-cutting and early signs of product traction at core brands such as Tinder and Hinge. Rascoff highlighted that Tinder is focusing on user experience improvements and product updates aligned with Gen Z's preferences, while Hinge continues to benefit from global expansion and AI-powered matchmaking. "By leveraging our scale and accelerating innovation, we're seeing the beginnings of improved engagement," Rascoff said. The quarter also saw increased indirect revenue from advertising, particularly around key holidays. Looking ahead, management indicated the company's forward strategy will hinge on continued product innovation, disciplined investment, and international expansion. Rascoff described plans to further develop AI-driven features and roll out new experiences, such as Tinder's Double Date and the AI-powered daily match, to more markets. CFO Steven Bailey noted that restructuring efforts are expected to yield over $100 million in annualized savings, helping to fund growth initiatives while maintaining margin targets. However, the team signaled caution about potential macroeconomic pressures, especially among younger users. As Rascoff stated, 'We'll continue to prioritize long-term user outcomes over short-term metrics as we execute our turnaround.' Management traced the latest quarter's performance to a mix of organizational restructuring, investment in AI-powered features, and targeted cost containment, alongside evolving platform strategies. Organization-wide restructuring: Match Group implemented a 13% reduction in workforce and consolidated key functions to operate as a single, product-focused entity. Rascoff described these actions as necessary to streamline decision-making, reduce redundant management layers, and accelerate product delivery cycles. Tinder product evolution: Leadership highlighted new features such as Double Date, designed to boost engagement with Gen Z users. The company is also piloting AI-driven daily match recommendations in New Zealand, aiming to fundamentally shift user perception and address declining monthly active users. Early metrics point to increased engagement and new registrations in targeted markets. Hinge's momentum and expansion: Hinge continued to gain traction, with management citing its launch of a new AI-powered recommendation algorithm and strong user growth in both English-speaking and European countries. The brand plans additional market entries in Brazil and Mexico later this year, reinforcing its leadership in the 'intentioned dating' segment. Advertising revenue spike: The quarter saw record indirect revenue from advertising, especially around Valentine's Day. However, management cautioned this was not expected to repeat in future quarters, maintaining a flat full-year outlook for advertising. Emphasis on trust and safety: Match Group invested in new user verification and safety features, including the integration of World ID and mandatory liveness checks. These initiatives reportedly reduced bad actor reports by over 15% in test markets, a step management views as essential to rebuilding user trust and category reputation. Management expects future performance to depend on the pace of product innovation, international expansion, and the ability to capture operating efficiencies amid uncertain consumer trends. AI-driven product innovation: Match Group is prioritizing the rollout of AI-powered features—such as Tinder's daily match and Hinge's recommendation engine—to improve user experience and differentiate its platforms. Management believes these efforts will be fundamental to reversing declines in user growth and engagement. International market expansion: The company is investing savings from restructuring into global launches for key brands, including Hinge's entry into Latin America and The League's expansion into the Middle East and India. Management views these moves as important levers for long-term growth and local network effects. Cost efficiencies and macro headwinds: Leadership plans to maintain margin discipline by further optimizing operating expenses and leveraging its scale in marketing and technology. However, they acknowledged risks from macroeconomic pressures, particularly affecting a la carte spending among younger users, and signaled readiness to adjust pricing or merchandising if needed. In the coming quarters, the StockStory team will monitor (1) the pace and user adoption of newly launched AI features on Tinder and Hinge, (2) the effectiveness of restructuring in delivering margin improvements and operational agility, and (3) the success of international market entries for core brands. Additional focus will be placed on signs of stabilization in Tinder's monthly active users and the impact of trust and safety investments on user sentiment. Match Group currently trades at a forward EV/EBITDA ratio of 6.8×. Should you double down or take your chips? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. 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