Category: Hinge
Match Group’s “Are You Sure?” Feature to Expand to Millions of Users Across Match, Stir, OurTime & More
Match Group Q3 Financial Results
MATCH GROUP – In Q3 2023, Match Group reported its highest ever quarterly total revenue of $882M, a 9% increase YOY. Key financial highlights include:
- Tinder's revenue rose by 11% YOY, reaching $509M
- Hinge saw 44% YOY increase in revenue, amounting to $107M, driven by substantial user growth, especially in English-speaking and European markets
- Match Group Asia and Evergreen & Emerging segments saw a decline in revenue by 5% and 3% YOY respectively
- Operating Income stood at $244M, marking a 16% YOY growth
- Adjusted Operating Income reached $333M, reflecting a 17% YOY growth
Tinder's Revenue growth was driven by U.S. pricing optimizations, resulting in a raised RPP of $16.28, even though there was a 6% decline in payers. Hinge's success continued, with a 33% YOY increase in payers and an RPP growth of 8% YOY. In contrast, certain brands in Asia and the Evergreen & Emerging segments experienced revenue declines.
Tinder Partners With Mean Girls Actor Jonathan Bennett to Help Users Avoid Online Fraudsters
MATCH GROUP – Tinder is collaborating with "Mean Girls" actor Jonathan Bennett and Advocating Against Romance Scammers to raise awareness about online financial scams. October 3rd has been designated World Romance Scam Prevention Day. The campaign warns users about the dangers of online scams, particularly the growing trend of crypto scams. Tinder and Hinge are emphasizing the importance of users not sending money or taking investment advice from unfamiliar individuals. The initiative is part of Match Group's ongoing commitment to user safety across its platforms.
Dating Apps Put a Hefty Price Tag on Finding Love
Match which will roll out a superpremium tier on Tinder in the fall. "If you actually take a small fraction of our payers at higher price points, you actually get a number that's in the tens of millions of dollars on an annual basis," CEO Bernard Kim said.
Bumble CEO Whitney Wolfe Herd sees premium services delivering new opportunities. "We see that there's a lot of runway to expand there."
Even if uptake is slow, there is precedent behind the move to raise prices. Mark Brooks, CEO of Courtland Brooks, which helps online dating companies grow, said that other brands, such as eHarmony and Tawkify, have for years priced their premium services above what Tinder, Hinge and Bumble charged. The stakes are high in showing users that paying is worth it, Brooks said. Otherwise, they could defect to competing platforms. "They've got to actually really deliver on it, because they'll get crucified if they don't," said Brooks.
Shadowbanning: the Hidden Tactics of Online Dating
GIZMODO – A lot of online daters think Hinge and other dating apps are keeping them from seeing or matching with the most appealing singles. Shadowbanning is a phenomenon where a tech platform hides users' accounts from others. Social media is full of people across the gender spectrum describing dating app shadowbans, sometimes offering tips and techniques to escape the algorithm. A Hinge spokesperson said Hinge sometimes handles bad actors by preventing other users from searching for them, seeing them in the feed of potential matches, or receiving their messages. Rule breakers often make new accounts after an outright ban, so the subtle yet frustrating shadowban can be a better way to curb misbehavior. "We do not withhold possible matches from users," the Hinge spokesperson said. "We want our users to match with the people they're compatible with and delete our app."
Hinge Is Hiring a VP of AI
BUSINESS INSIDER – Hinge is hiring a VP of artificial intelligence (AI) to lead its transition to an "AI-First company." The role, based in New York, offers a salary between $332K to $398K annually and requires an advanced degree in a related field plus tech leadership experience. This individual will work on developing AI features, ensuring ethical AI practices, and defining the company's AI goals. This move by Hinge aligns with the broader trend of incorporating AI into dating apps to enhance user experiences.
Match Group Q2 Financial Results: Record Revenue in Q2 of $830M
PRESS RELEASE – Total Revenue grew 4% YOY to $830M. Tinder direct revenue was up 6%, while other brands collectively were up 3% YOY. Within other brands, Hinge direct revenue was up 35% YOY. Payers declined 5% to 15.6M over the prior year quarter. Operating income was $215M, representing an operating margin of 26%. Tinder has increased its revenue through pricing optimization and weekly subscription packages, improving user growth and conversion rates, particularly among females. The brand plans to introduce a product refresh targeting Gen Z with features for deeper self-expression. Additionally, a high-end membership tier is expected to launch in early fall. The company is working on AI-based features set to launch over the next two quarters, including helping users select their best photos and using AI to suggest potential good matches.
Match to Post Q2 Earnings: What’s in Store?
YAHOO FINANCE – Match reports on Aug 1 and expects Q2 revenues of $805-$815 million. Zacks Consensus Estimate is $814m, indicating 2.4% growth year over year. Match Q2 performance is likely to have benefited from continued momentum at Tinder and solid performance of Hinge, Pairs and OkCupid.
- In the first quarter, the number of total payers increased 10% to 16.4 million from the prior-year quarter. Match Group is persistently investing for the improvement of machine learning tools that can efficiently and proactively identify, prevent and eliminate spam.
- The launch of Archer should boost users.
- In Q1, Match Group introduced a new feature called 72 hours which promotes more meaningful connections with a time-sensitive experience.
- The acquisitions video tech company, Hyperconnect and non-dating app Ablo might aid international revenue. Hyperconnect continues to build momentum.
- Hinge rolled out features which address questions around sexuality and features answers from leading LGBTQIA+ voices. This is likely to have attracted subscribers.
See full article at Yahoo Finance
Mark Brooks: I wonder how Match Groups' experiments with high-end value points, i.e. $500 a month, will play out? That move will certainly inspire and impact the industry. I believe we are leaving money (value) on the table. People want more. We need to find new ways to give it to them.
Understanding User Behavior: the Intersection of Profit and Matchmaking in Dating Apps
INSIDEHOOK – Dating apps operate with different business models that could significantly impact user experiences. While apps like Hinge market themselves as platforms designed to find lasting connections, others like Tinder and Bumble have focused on optimizing user engagement. Apps like Thursday have sought to limit user interaction to reduce the gamification effect. Despite the surface altruism, these businesses are driven by a profit motive, focusing on user retention and regular engagement to maintain an active user base. This has sparked speculation about whether these apps, incentivized to keep users active, could unintentionally prolong the quest for meaningful connections. Each app caters to a unique demographic and promotes a distinct user experience, potentially affecting the user's dating life.