Match Group Cuts 13% Workforce, Embraces AI to Revitalize Dating Apps

Tinder parent Match cuts 13% of workforce, forecasts revenue above estimates

May 8 (Reuters) - Match Group (MTCH.O), opens new tab on Thursday forecast second-quarter revenue above Wall Street estimates and said it would reduce 13% of its workforce to cut costs, as the Tinder parent plows ahead with its business revamp plan. Shares of the Dallas, Texas-based company rose 2.7% in premarket trading. The layoffs are the first major structural change at Match since new CEO Spencer Rascoff took the helm in February and was tasked with tackling a slowdown in user engagement. The online dating industry has hit a rough patch as persistent inflation and a lack of innovative features prompted consumers to move away from dating apps such as Tinder and Bumble (BMBL.O), opens new tab. In response, Match and Bumble have been refining their applications and introducing artificial intelligence features such as AI-enabled discovery to make it easier for users to improve their dating outcomes. Match, which also owns dating apps Hinge and OkCupid, has introduced features such as "double date" and Game Game, which was a voice-based experience that allowed users to practice flirting with an AI date, to better cater to Gen-Z audiences. The double-date feature, which allows users to team up with a friend and match with other pairs, is resonating with its younger audience, with 90% double-date profiles from users under 29, CEO Rascoff said. Its revenue per paid user increased to $19.07 from $18.87 a year ago. For the second quarter, the company forecast revenue between $850 and $860 million, above analysts' average estimates of $846.7 million, according to data compiled by LSEG. Match is also testing new features to boost its security and verification programs and has seen a more than 15% reduction in bad actor reports. For the quarter ended March 31, the company's revenue declined by 3% to $831 million, beating estimates of $827.5 million. Rival Bumble on Wednesday reported a more than 7% fall in first-quarter revenue, but met market estimates. Reporting by Kritika Lamba in Bengaluru; Editing by Devika Syamnath Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

Tinder parent Match cuts 13% of workforce, forecasts revenue above estimates

Match Group on Thursday forecast second-quarter revenue above Wall Street estimates and said it would reduce 13% of its workforce to cut costs, as the Tinder parent plows ahead with its business revamp plan. Shares of the Dallas, Texas-based company rose 2.7% in premarket trading. The layoffs are the first major structural change at Match since new CEO Spencer Rascoff took the helm in February and was tasked with tackling a slowdown in user engagement. The online dating industry has hit a rough patch as persistent inflation and a lack of innovative features prompted consumers to move away from dating apps such as Tinder and Bumble. In response, Match and Bumble have been refining their applications and introducing artificial intelligence features such as AI-enabled discovery to make it easier for users to improve their dating outcomes. Match, which also owns dating apps Hinge and OkCupid, has introduced features such as "double date" and Game Game, which was a voice-based experience that allowed users to practice flirting with an AI date, to better cater to Gen-Z audiences. The double-date feature, which allows users to team up with a friend and match with other pairs, is resonating with its younger audience, with 90% double-date profiles from users under 29, CEO Rascoff said. Its revenue per paid user increased to $19.07 from $18.87 a year ago. For the second quarter, the company forecast revenue between $850 and $860 million, above analysts' average estimates of $846.7 million, according to data compiled by LSEG. Match is also testing new features to boost its security and verification programs and has seen a more than 15% reduction in bad actor reports. For the quarter ended March 31, the company's revenue declined by 3% to $831 million, beating estimates of $827.5 million. Rival Bumble on Wednesday reported a more than 7% fall in first-quarter revenue, but met market estimates.

Tinder Parent Match Group Cuts 13% Of Workforce After Earnings Miss, Taps Gen Z Features Like 'Double Date' To Spark Growth - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Match Group (NASDAQ:MTCH)

Dating app giant Tinder, Hinge, and Match.com's parent company, Match Group Inc. MTCH, missed estimates but announced restructuring plans spearheaded by new CEO Spencer Rascoff during its first quarter earnings call. What Happened: Rascoff unveiled a strategy focused on unifying the company's diverse portfolio of brands, integrating artificial intelligence across its platforms, and prioritizing product innovation to spur growth. However, layoffs were also the primary part of the company's plan. "We've also taken some hard, but appropriate steps today to sharpen our focus, including a planned 13% reduction of our workforce, as well as closing a number of open roles and further tightening operating expenses," he said. He explained that the deep integration of artificial intelligence with Tinder aimed at attracting a younger, Gen Z audience. These include "Double Date," allowing users to pair up with friends, and "The Game Game," a voice-based experience using AI for flirting practice. Rascoff highlighted that Hinge continues to be a strong performer in the "intentioned dating" category. The app saw a 23% year-over-year increase in direct revenue, driven by user growth and the successful launch of an AI-powered recommendation algorithm that has boosted matches and contact exchanges. See Also: Warren Buffett Falls Behind Nancy Pelosi In Stock Market Returns Over The Last 11 Years: Here's What Data Shows Why It Matters: While the company's total revenue of $831.2 million slightly surpassed the analyst consensus estimate of $827.5 million, representing a 3% year-over-year decline, its GAAP earnings per share of $0.44 missed the expected $0.45. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started The number of paying users also fell by 5% to 14.2 million compared to the same period last year. Looking ahead, Match Group reaffirmed its full-year 2025 total revenue guidance but noted potential headwinds from macroeconomic conditions and foreign exchange rate volatility. MTCH shares were lower by 15.76% on a year-to-date basis and 10.17% over a year. On Thursday, the shares closed 9.58% lower. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Thursday. The SPY ended 0.70% higher at $565.06, while the QQQ advanced 1.03% to $488.29, according to Benzinga Pro data. Benzinga Edge Stock Rankings shows that MTCH had a weaker price trend over the short, medium, and long term. Its momentum ranking was weak at 34.53th percentile, whereas its value ranking was poor at 32.16th percentile; the details of other metrics are available here. Read Next: China Could Sell Its US Holdings Without Having To 'Give In,' Says Expert: 'Risk Asset Prices Are Trump's Achilles Heel' Photo by Koshiro K via Shutterstock MTCHMatch Group Inc$27.520.18%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum34.53Growth60.10Quality-Value32.16Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$487.98-0.06%SPYSPDR S&P 500$564.32-0.13%Got Questions? AskWhich dating platforms may benefit from AI?How will Match Group's layoffs affect rivals?Which Gen Z features could attract new users?Will Hinge outperform competitors in 2025?How might macro conditions impact the dating industry?What impact will foreign exchange rates have on revenues?Could AI integration lead to new investment opportunities?How does MTCH's performance affect sector ETFs?Which investors are likely to react to Match's strategies?What are potential risks for dating app stocks?Powered ByMarket News and Data brought to you by Benzinga APIs