Match Group Names New CFO
Contributed by: kellyseal on Monday, November 11 2024 @ 12:49 pm
Last modified on Monday, November 11 2024 @ 01:03 pm
Match Group has promoted Steven Bailey to the position of CFO, taking over for Gary Swidler as he continues in his role as president of the company.
Bailey is currently senior vice president of financial planning and business operations at Match Group, according to Reuters, and will assume his new position on March 31st. According to Reuters, his appointment signals the company’s commitment to “long-term strategic growth” and “strong cost discipline.”
Match Group’s most popular app Tinder has seen paying users and revenue fall in recent quarters, though Hinge continues to grow. The company has allocated a lot of resources to AI-driven features like photo selection and prompts that provide users help with crafting messages and bios, which seem to be the direction many dating apps are going. In fact, Grindr is testing out a new virtual wingman using generative AI.
Swidler has been CFO for over a decade, and now can dedicate himself full time to his role as president of the company, which owns popular dating apps Tinder, Hinge and Plenty of Fish among others. Bernard Kim is Match Group’s CEO.
Match Group has been adjusting revenue expectations, including its recent third quarter forecast, to below Wall Street analyst expectations according to Reuters[*1] . There is a general downward trend in the dating app market overall, driven by younger users who are getting frustrated that many features that were once free are being put behind a paywall. Many are refusing to pay and turning to other social platforms like Instagram and LinkedIn to meet people, or are looking to in-person events.
In fact, Match Group has organized several events across the US this past year, including ongoing running clubs in New York and London to encourage its users to meet in person, thanks to trend of younger people looking for in-person experiences.
Still, the company needs to grow revenue to satisfy investors. Paying users on Tinder fell 8 percent in the second quarter of 2024 to $9.6 million. The quarter before that, revenue had fallen 9 percent.
In addition to charging for more features, Tinder has also offered new subscription levels, including a premium VIP service for $499 per month, as well as short-term subscriptions to drive revenue.
According to Reuters, Match Group is also under pressure from its activist investors Elliott Management, Starboard Value, and Anson Funds Management, who have been advocating for significant changes, including shake-ups of management.
Match Group has pointed to apps like Hinge which are gaining users, as well as the success of its AI-driven features, as points of revenue growth.
For more on this check out their press release[*2] .