Match Group Sees $421 Million in Revenue for Q2

Match Group
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Match Group, the parent company of popular dating apps such as Tinder, OkCupid, and PlentyofFish, reported second quarter earnings of $421 million, exceeding industry analyst expectations.

The rise in profits was thanks to its star app Tinder, which gained an additional 300,000 subscribers in Q2 alone, and has seen a record 3.8 million subscribers to date. Match Group expects to earn $1.72 billion this year, with Tinder expected to exceed $800 million in revenue, according to Fortune Magazine. Match Group’s subscribers for all apps total about 7.7 million.

“Retention and conversion were a bit stronger than we thought they would be,” Chief Executive Mandy Ginsberg told website MarketWatch.

Tinder offers a free service, but a growing number of users are opting for their premium services Tinder Gold and Tinder Plus, which offer more options like specially curated matches (based on user preferences using AI technology), a new feature the company rolled out this summer. Premium services also offer popular features like seeing who liked you first, the ability to match with people in different cities, and “Rewind” which lets users choose a match they might have passed on earlier.

Tinder also just rolled out the highly anticipated Tinder U, which allows college students to match with other people on campus as well as users from nearby schools. Tinder’s core user group is getting older, and the company aims to introduce a new generation of daters to the app. (Plus, many young daters don’t want to be on the same dating app as their parents, according to Ginsberg). Match Group’s marketing efforts for back-to-school season are expected to increase, according to Reuters.

Earlier this year, Match Group purchased a majority stake in dating app Hinge. Analysts have speculated that the company’s interest in buying up competitors might be linked to Facebook, who announced earlier this year that they would be entering the online dating space.

Match Group was also in talks with female-friendly dating app Bumble, but their negotiation deteriorated. Match Group filed a patent infringement lawsuit, claiming that Bumble had stolen their swiping technology, and Bumble responding with a countersuit, claiming Match Group took proprietary information during their talks.

While Match Group seems to be growing and taking over the online dating space, Facebook is still facing challenges with security and privacy for its users. The company recently testified in front of Congress regarding its role in the partnership with Cambridge Analytica, a research firm that was front and center in the 2016 U.S. Presidential election, who was found to have stolen personal information from over 87 million Facebook users.

Match Group is expected to see increased revenues throughout 2018, although growth was temporarily slowed by Facebook’s announcement.