NEW YORK TIMES – Nov 19 – Apple, facing growing antitrust scrutiny over what it charges companies for access to its App Store, said it would cut in half the fee it takes from smaller app developers. Developers that brought in $1M or less from their apps in the previous year will pay a 15% commission on those app sales starting next year, down from 30%. The change will affect ~98% of the companies that pay Apple a commission, according to estimates from Sensor Tower, an app analytics firm. But those developers accounted for ~5% of App Store revenues last year. Apple said that it had made the change because 2020 was a difficult year for many small companies. The fee cut probably won't calm the waters between Apple and the larger app developers that have long protested the fee most loudly. Epic Games sued Apple in August. A month later, 13 companies, including Spotify and Match Group, formed the nonprofit Coalition for App Fairness to fight the "app tax." And American and European regulators are investigating Apple for anticompetitive behavior, partly because of its commission.
Category: Match Group
Hinge Breaks out of Tinder’s Shadow
COVERING COMPANIES – Nov 16 – In Q3, Match Group posted 88% revenue growth for its non-Tinder dating apps, including Hinge, Pairs, BLK, Chispa, and Hawaya. Hinge also reported an 82% YOY surge in app downloads. Launched in 2012, the same year as Tinder, Hinge branded itself as the anti-Tinder app. Match acquired the startup in 2019. "Match's acquisition was driven by the need to retain users who were looking to move past Tinder's hookup culture, said Mark Brooks, a marketing consultant to online dating companies through his marketing agency Courtland Brooks. "Tinder is a game. What they intend to do with Tinder is soak up as many people as possible," said Brooks. "And then what they intend to do with Hinge is graduate people from Tinder to Hinge." In Q3, Hinge launched paid features: virtual roses, akin to Tinder's Super Like, and writing prompts called Standout to spur conversations between daters. Lauren Cassel, Morgan Stanley's analyst, estimated that Hinge would have 8M subscribers in 2030, contributing $2.8B in revenue compared to the current $60M.
Where Will Match Group Be in 5 Years?
THE MOTLEY FOOL – Nov 13 – Match Group went public at $12 per share five years ago after being spun out from IAC. The stock has risen more than eleven-fold since then, and the annual revenue rose from $888M in 2014 to $2.1B in 2019, representing a compound annual growth rate of 18.8%. Match's average revenue per user (ARPU) could eventually peak as it saturates Tinder's subscriber base with Gold upgrades. That's why Match recently started testing Tinder Platinum, which includes all the Plus and Gold perks and adds two new features: "Priority Likes", which take precedence over Likes and Super Likes from lower tiers; and "Message Before Match", which lets users attach short messages to their Super Likes. Match will continue to expand Hinge and its other stronger apps, and possibly acquire additional dating apps.
Could Hinge Be Match Group’s Next Tinder?
THE MOTLEY FOOL – Nov 10 – Tinder dominates Match's revenue. It has grown from around zero revenue in 2014 to ~$1.4B this year. Match.com and other legacy websites like PlentyofFish make up around a third of sales. The smallest part of Match's current portfolio is the "emerging opportunities." It includes brands like Ablo, Pairs, and Hawaya, but is led by Hinge. Hinge is "designed to be deleted," meaning it targets people in the slightly older millennial cohort looking for long-term relationships. Match doesn't disclose Hinge's nominal revenue numbers. However, the app downloads year-to-date were up 82%. In fact, the company disclosed in its Q2 report that Hinge users have grown more than tenfold since 2017. With ~10M downloads globally, Hinge may be on the verge of what Tinder achieved a few years ago: hitting escape velocity in its target market.
by Brett Schafer
See full article at The Motley Fool
Match Group Q3 Earning Call Highlights
OPW – Nov 6 – Yesterday, the Match Group announced Q3 financial results. Revenue was up 18% YOY ($640M). Operating income was $200M, up 14% YOY.
- Average Match Group subscribers reached 10.8M, up 12% YOY. North American average subscribers grew 9% YOY, and international subscribers grew 16%.
- Tinder's average subscribers increased a little over 900K YOY, 16% growth.
- Tinder's developed markets are performing well, but in India and parts of Latin America and Southeast Asia, the virus is still impacting Tinder users.
- 23% YOY direct revenue growth at the non-Tinder brands in Q3. These brands added ~275K average subscribers YOY.
- Solid live streaming revenue growth at Plenty of Fish.
- Newer brands like Chispa and BLK are contributing significant revenue growth. Hinge has been the standout this year, with 82% year-to-date growth in downloads and outstanding progress on monetization. Collectively, these new and emerging brands, including Pairs, grew 88% in the Q3.
- For Q4, Match Group expects total revenue of $640M to $650M, which would represent 17% to 19% YOY growth.
- Hinge monetization efforts made this year have worked (launch of Standouts and Roses – similar to Super Like on Tinder)
- Tinder Platinum is being tested in 10 markets, plans to roll it globally by the end of the year.
- Match Group launched a new brand Upward which is targeted to the Christian community in the U.S.
Match Group Q3 Results – Revenue up 18%
MATCH GROUP – Nov 6 – Q3 revenue grew 18% YOY to $640M. Operating income was $200M, up 14% YOY. Adjusted EBITDA was up 21% ($249M). Average Subscribers increased 12% to 10.8M. Tinder Direct Revenue grew 15% YOY, driven by 16% average subscriber growth to 6.6M. Non-Tinder brands collectively grew direct revenue 23% YOY.
Hawaya Dating App for Muslims Arrive in Malaysia
POKDE.NET – Nov 2 – Hawaya (owned by Match Group) is a Cairo-based dating app, founded in April 2017 by four Egyptian entrepreneurs. Hawaya is inspired by the word "Hawa" which translates to "love" in Arabic. According to the company, Hawaya carefully curates a culturally-acceptable solution to matchmaking. Users have to answer a series of questionnaires and authenticate their profile through a selfie verification process.
by Raja Idris
See full article at Pokde.net
Hinge Turns Profitable
SEEKING ALPHA – Oct 28 – Amid the pandemic, Match Group announced that Hinge is now profitable and on track to triple revenue this year. In February of this year, Match Group acquired the remaining 49% of Hinge that it didn't already own. Match had previously purchased a majority stake in the app back in June 2018. Tinder's somewhat sleazy reputation as a "hookup app" allowed other entrants such as Hinge to build brands around the idea of a more relationship-focused service. Rather than retool Tinder to be all things to all people, Match bought Hinge and embraced the idea of market segmentation. Although Match doesn't offer any specific numbers, Morgan Stanley analyst Lauren Cassel estimates that the app has 6M active users and ~400K paying subscribers. Those numbers are dwarfed by Tinder's estimated user base of ~50M active accounts and ~6M paying users, but Hinge's customer base is older, and thus, willingness to pay is higher. Assuming that the 400K paying user figure is accurate, simple arithmetic shows that Hinge could be generating ~$64M annually in sales from subscriptions alone.
Coalition of App Developers Taking Aim at Apple Is Growing Rapidly
CULT OF MAC – Oct 27 – The Coalition for App Fairness, a group of developers targeting what they claim is Apple's unfair control of the App Store, has more than doubled in size since its formation last month. According to a new report, the original group of 13 companies – which included the likes of Epic Games, Spotify and Match Group – has now increased to 40, with another 400 requests to join. The coalition has what it refers to as the 10 App Store Principles. The App Store has been investigated by politicians in both the U.S. and Europe.
Ethnicity Filters on Dating Apps Raise Questions About Romantic Discrimination
by Jacklin Kwan
See full article at Mancunian Matters
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