Month: May 2023
Bumble President: AI Integration Can Help ‘Remove Some of the Friction’ in Online Dating
YAHOO FINANCE – Bumble's Q1 2023 earnings exceeded revenue expectations, reaching nearly $243 million, a 16% annual increase. Bumble app revenue grew 26% since last year, and total paying users increased to 3.5M, a 15% annual jump. Bumble is testing a new premium paid feature called "Best Bees" that leverages machine learning to improve the curation of compatible matches. Bumble President Tariq Shaukat emphasizes that the company's main goal is to foster real-life connections and that AI is meant to complement and assist the dating experience, rather than alter a user's authentic self. Shaukat envisions AI helping users make better choices in their profiles, improving match compatibility, and promoting kinder and safer connections. AI can also help detect bots, maintain the authenticity of profiles, and facilitate better communication within the app, supporting Bumble's focus on "kind connections."
Spark Networks Q1 Results – Shutters Berlin Office, Laying off 200
PR NEWSWIRE – Chelsea Grayson, CEO of Spark Networks, said: "Our two highest priorities remain returning to revenue growth and improving profitability." The Company believes it can achieve significant efficiencies by both reducing costs and growing revenue through the following changes:
- Exit Germany: Spark Networks aims to shut down its Berlin branch by Jan 2024. This includes cutting around 200 full-time jobs.
- Improve Product & User Experience: Spark Networks plans to outsource its IT services to a third-party
- Hire a Chief Revenue Officer to join its senior leadership team.
- Substantially Improve Marketing Yield and Process
First Quarter 2023 Financial Results Q1 revenue was $41.3M, compared to $49.9M in the Q1 '22. Net loss was $4.4M, compared to $7.5M in Q1 '22.
How the Founder of Dating App DOWN Fought for His ‘Casual Sex’ App in Silicon Valley
TECHROUND – Colin Hodge, CEO and Co-Founder of Bang With Friends, shares the journey of launching a controversial app in Silicon Valley. The app quickly gained popularity, reaching 1M users within 3.5 months. However, it faced challenges, including bans from Apple's App Store and Google's Play Store and a trademark infringement lawsuit from Zynga. After rebranding to DOWN, the company persevered and celebrated its 10-year anniversary in January. With ~10M users, DOWN has seen a 500% increase in its user match-rate and a 268% revenue growth since 2019, making it a profitable top 20 dating app in the USA.
DNA Romance Has a New Co-Founder
PRESS RELEASE – DNA Romance, a DNA-based matchmaking service, has appointed renowned sexologist and relationship counselor Dr. Martha Tara Lee as its new Co-Founder and Chief Sexologist. Dr. Lee, who has a Doctorate in Human Sexuality and a Masters in Counselling, has been actively using DNA Romance's technology and believes analyzing users' genetic makeup can lead to deeper compatibility and more successful relationships. As Co-Founder and Chief Sexologist, she will oversee public relations, partnerships development, media publicity, and support the development of new features and services to enhance user experience.
Buyers Are ‘Window Shopping’ for Startups, but Few Are Willing to Spend Big
PITCHBOOK – Dealmakers and investors agree that by the end of this year or early next year, M&A activity will increase significantly. Larger startups are looking to buy smaller companies with complementary products. These acquisitions aim to create a bigger platform and grow revenue by cross-selling and create a business large enough to be an IPO candidate. Public companies more recently have a lower acquisition appetite than before because their valuations are down significantly. A survey from The Conference Board found CEOs expect the economy to deteriorate further by the end of the year and valuations to drop. A sale to a private equity firm is seldom a great financial outcome for VCs, however dealmakers expect a surge in these transactions.
by Marina Temkin
See full article at Pitchbook
See extended summary at Internet Dating Investment blog
Mark Brooks: Match Group's cost of capital is higher now, so IMHO they will rest on their laurels and make the most of what they have until the trajectory of the market looks more clear. Other buyers will be bargain hunting, but mindful of the poor outlook for IPO'ing a consolidated dating group. VC money is a little dry. Angels rule. If you're in the market for funding, let me know, and I'd be happy to share a comprehensive list of investors that we've built over the years, and just updated current thru April. FYI, Courtland Brooks works with startups through $500m+ revenue dating companies.
Dating App Even for Single Parents Tackles ‘Ghosting’ Issue
DAILYSTAR.CO.UK – Match Group has launched Even, a UK dating app launched especially for single parents. It comes after people in the UK admit to getting "ghosted" when fellow singles find out they have children. The decision to create the app came after a study found that 57% of single parents experienced ghosting solely because they had children. Some single parents reported a decline in confidence and self-esteem due to this discriminatory behavior, with 29% expressing a desire to give up on dating altogether. Even will therefore eliminate any potentially challenging discussions about these things to give people the opportunity to match with like-minded individuals.
Tinder Will Remove Social Handles From Profiles
TECH CRUNCH – Tinder is updating its community guidelines in a bid to keep the dating app safe and respectful. As part of the updates, Tinder will automatically remove social handles from bios and discourage users from posting private conversations with their matches on other platforms. In addition, Tinder is making it clear that an account should be for a single person, and that users in poly and open relationships should create separate accounts for each partner.
Plenty of Fish Launches New Feature to Cut Unsolicited Nude Pictures
DEVON LIVE – Plenty of Fish has introduced the "No D*ck Pic" (NDP) badge, allowing users to signal that they don't want to send or receive unsolicited nude pictures. This feature follows research showing that 40% of British daters consider such images a major turn off, with 48% having received one from a match. The NDP badge is part of the app's ongoing commitment to promote positive dating behaviors. Another feature, "Are You Sure?", prompts users to reconsider potentially harmful language or emojis in their messages, resulting in a 13% reduction in offensive language since its global launch last year.
Updates to Ten Year Club
OPW – The Ten Year Club is a little group within IDEA that recognizes people who have dedicated 10+ years of their career in the dating industry. We just updated the page here, so you can see the growing list of people in the group here. The next LTR online conference will feature a panel of people from this group.