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Category: Outlets – Wall Street Journal

Tinder Adds Background Checks

Posted on March 9, 2022

Tinder and GarboWALL STREET JOURNAL – Tinder is introducing a tool to let users run background checks on prospective dates, as the company continues to address concerns about the safety of dating apps. Match Group said it has been developing the tool since last March, when it announced an investment in Garbo Technology, a nonprofit background check organization. While some Tinder users may benefit from learning potentially important information about a date, false positives or lack of data in some results are also likely to make some people fearful, said Naomi F. Sugie, associate professor of criminology, law and society at the University of California. Garbo said it has tried to address the pitfalls of background checks by adding its confidence indicators and limiting the information it provides.

by Ann-Marie Alcántara
See full article at Wall Street Journal

See the top news on Tinder

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Pandemic and Crypto Fuel Increase in Romance Scams

Posted on February 15, 2022

CurrencyWALL STREET JOURNAL – The number of romance-related frauds reported to the FTC rose ~70% in 2021, and the total amount lost jumped to $547M. The pandemic may have fueled the continued growth of romance scams as the coronavirus has provided a convenient excuse for scammers to say they aren't able to meet in person. Last year also saw scammers increasingly using romance as a hook to lure people into bogus investments, particularly those involving cryptocurrency. Cryptocurrency was the top method that victims used to make payments in 2021, at ~$139M. That is nearly five times the cryptocurrency amount reported in 2020 and more than 25 times that in 2019, the FTC said. In comparison, ~ $121M was lost through bank transfers or payments and another $93M through wire transfers in 2021, FTC data shows.

by Mengqi Sun
See full article at Wall Street Journal

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Voice – the New Secret to Online Dating Success

Posted on February 3, 2022

Hinge Voice PromptsWALL STREET JOURNAL – Dating apps are giving users the ability to add voice recordings to their profiles. Last October, Hinge added Voice Prompts to its user profiles. "~65% of our users were saying getting to hear someone's voice earlier on in the dating journey would be really valuable," said Michelle Parsons, chief product officer at Hinge. In June 2021, Tinder gave users the ability to add video recordings – including voice – to their profiles. The League dating app did the same back in December 2019. A quarter of League users are taking advantage of the technology.

by Kathryn O'Shea-Evans
See full article at Wall Street Journal

See the top news on Hinge
See the top news on Tinder
See the top news on The League

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Match Hopes Hinge Can Be Its Knight in Shining Armor

Posted on February 3, 2022

Hinge logo 2020WALL STREET JOURNAL – Match Group reported mixed Q4 results on Tuesday with adjusted operating income coming in just above Wall Street's estimate, while both Tinder revenue and total revenue growth fell slightly short of analysts' expectations. Match attributed the revenue shortfall to foreign exchange and lingering effects of Omicron. Match talked more about relationship app Hinge. Match now says Hinge did just under $200M in revenue last year and forecasts that revenue would grow to ~$300M this year. Hinge's payers increased ~60% in the Q4 quarter versus the same period of 2019 with revenue per payer growing ~300% over that period.

by Laura Forman
See full article at Wall Street Journal

See the top news on Match Group
See the top news on Hinge

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Match.com Brings Back the Human Touch

Posted on December 13, 2021

Matchcom logoWALL STREET JOURNAL – From online dating to social media, algorithms are getting more assistance from humans. Since February, Match Group has been testing a human matchmaking layer to its namesake Match app and will provide two handpicked matches for users willing to pay $4.99 a week. The pilot involves a 50-member team who have been trained as dating coaches by the company. Match said ~30% of its members have already opted in for the feature. Users of the feature were eight times more likely to match – or mutually like one another – with an expert pick versus without the service, Match said.

by Laura Forman
See full article at Wall Street Journal

See the top news on Match.com

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Match Group’s Shares Down 17%

Posted on November 30, 2021

Match-Group-logo 2021WALL STREET JOURNAL – Investors are dumping Match amid ongoing litigation risk. Match's shares are down ~17% since the trial began in November. Investors are overestimating the risks. A litigation analyst for Bloomberg Intelligence recently predicted Match has a 75% chance of winning the case. A 2017 report from Barclays showed Tinder did $176M in revenue in 2016 and, as of the Q1 of 2017, had less than a fifth of the payers it has today. No one predicted how much money Tinder Gold would make. According to Barclays Tinder's management predicted $454M in revenue in 2018 and Rad $503M. Barclays landed in the middle at $485M, significantly below the $800M the app actually ended up generating that year. Rad predicted 2020 revenue to be $892M. Last year, the app made $1.4B for Match. The banks ultimately valued Tinder at $3B in 2017, while the plaintiffs argue it should have been worth $13B.The case is set to go to a jury in early December. For Match, the worst case scenario seems unlikely. The judge has already said valuations of dating companies today can't be taken into account.

by Laura Forman
See full article at Wall Street Journal

Mark Brooks: Match Group didn't just buy Tinder. They bought Singlesnet, and OKCupid, and People Media, not to mention POF, to hit the home run with Tinder. Sam Yagan, Mandy Ginsberg, Amarnath Thombre and Shar Dubey, executed beautifully to allow Tinder to disrupt the market. (Full Disclosure: POF is a former client of Courtland Brooks, and I own Match Group stock)

See the top news on Match Group

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Bumble Investors Should Be More Thankful

Posted on November 26, 2021

Bumble logoWALL STREET JOURNAL – Bumble may never have the broad appeal of Match Group but it is looking more lovable. Since going public in February, its share price has dropped 54% from where it opened on its first day of trading. Over just the last three months, it is down 36%, while Match’s share price has fallen less than 2%. But according to Q3, Bumble ARPU was ~$23, growing 18.5% YOY. Bumble's worldwide download grew 20% YOY. Bumble reported Q3 revenue for its namesake app grew 39% YOY, suggesting more people who are downloading the app are opting to pay for it.

by Lara Forman
See full article at Wall Street Journal

See the top news on Bumble

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Match Introduces Human Matchmaking

Posted on November 19, 2021

Match expert picksWALL STREET JOURNAL – For $4.99 a week Match dating experts will go through a user's answers to four questions and pair them. A 50-member team, trained as dating coaches, will select two profiles for participating members each week, drawing from the same algorithm-generated pool Match provides. Questions include, what a person would change about their dating life, and what sort of person a user gravitates toward. "The company created the feature because, for some singles, the pandemic has added a degree of urgency to finding a long-term relationship," said Amarnath Thombre, CEO of Match Group Americas. "People have had enough time to reflect," "Traditional matchmaking services are costly, starting in the thousands of dollars for just a few months. But these services are worth it to customers who don't have the time to sort through candidates on apps," said Tammy Shaklee, founder/matchmaker of H4M, an LGBTQ matchmaking service.

by Ann-Marie Alcántara
See full article at Wall Street Journal

Mark Brooks (owner of matchmaker.com): Fascinating stuff, but I think calling this matchmaking is an offense to the matchmaking industry. $5 a week may well be a scalable price-point, but I don't think this service does justice to the humanity of the service matchmakers provide. The whole point of (quality) matchmaking is to get deep into the person, council and coach them, and provide custom advice to the individuals, with occasional appropriately sugar-coated but tough feedback. Match's service appears to be a commitment vehicle. I don't quite see how this service quite passes muster as matchmaking, even as a minimum effective dose. Let's see. Looks like the opposite end of the spectrum to the matchmaking service eHarmony introduced and experimented with years ago.

See the top news on Match.com
See the top news on H4M

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Match Group Hopes for Savings From Looser App-Store Payment Rules

Posted on September 16, 2021

Match-Group-logo 2021WALL STREET JOURNAL – In-app fees are Match's biggest expense, said CFO Gary Swidler. A federal judge in California last week ruled that Apple can't block app developers from sending their users outside its app store to pay. The case was brought by videogame company Epic Games. Separately, lawmakers in South Korea last month passed legislation that requires Apple and Google to open their app stores to alternative payment methods. An Apple spokesperson said the company is reviewing the California court ruling. Regarding the new law in South Korea, Apple said it believes the measure could undermine users' privacy protections, among other effects. "We believe user trust in App Store purchases will decrease as a result of this legislation," the company said. By offering a 10% discount on subscriptions, Match might be able to persuade about a third of its Apple users to pay directly, providing the company with an additional $80M in gross profit, predicts Jake Fuller, an analyst at investment firm BTIG.

by Kristin Broughton
See full article at Wall Street Journal

See the top news on Match Group

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Investors See Big Potential in Smaller Online Dating Companies

Posted on September 14, 2021

Top 20 dating apps USWALL STREET JOURNAL – Since Jan '19, App Annie data show U.S. users have spent 7.4M hours on dating apps a month on Android phones alone. Match Group and Bumble collectively boast ~$50B in fully diluted market value, but plenty of businesses are trying. Coffee Meets Bagel, which hits users with algorithmically curated matches every day at noon, has made ~130M matches since its launch in 2012. Hily, which works to make it easier to start conversations, has 22M users. Snack, which is focused on video-first dating, was the 10th most-downloaded dating app in the U.S. last month, according to App Annie. Some just need a larger platform to help them take off. Hinge, in which Match took a majority stake in 2018 before acquiring it in 2019, saw ~100K U.S. downloads in Jan '18. By Mar '21, it was closer to 600K. Berlin-based Spark Networks did $233M in revenue last year. And then there is eHarmony owner ParshipMeet, which is preparing for a 2022 IPO. In the Q2 it had €139M ($164.2M) in revenue.

by Laura Forman
See full article at Wall Street Journal

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