Hinge

Match Group shared its fourth quarter earnings this week, offering investors some cautious optimism on what to expect in 2021. 

Last year the company saw record highs in new users and activity, but faced with economic recessions and a global pandemic, revenue growth remained uncertain. The company delivered slightly better than expected results for the last quarter of 2020, with revenue of $651.4 million for the quarter, up from $547.2 million. Analysts had been projecting $649 million according to Market Watch. Match Group also reported net income of $140.6 million, up from $94.7 million this time last year. 

Dating app Hinge has rolled out some impressive new features to help users connect with matches who spark their interest, and to help them engage in conversation.

According to Adweek, the app is offering new visuals that don’t resemble a traditional dating app, intended to capture the attention of its users – specifically, hand-drawn illustrations of people, dogs and plants in a color palette of purple, green and red. These illustrated characters will also offer users prompts and tips for starting conversations. Hinge intends to create more warmth and fun to the dating app experience, which they feel will help users connect. 

Match Group has had a stellar year, with its most recent earnings surpassing last quarter’s by 3.8 percent. Analysts however pointed out that the stock has underperformed based on year over year analysis, despite the company’s increased revenues.

Match Group reported third quarter earnings of 45 cents per share, which was a decline of 13 percent from third quarter 2019. However, Match Group’s revenue paints a different picture of the company’s success, with third quarter reports of $639.8 million, an increase of 18% year over year according to Yahoo! Finance. This was driven by an increase in the average subscriber base this year, likely with more people flocking to dating apps overall as the pandemic raged on.

The average subscriber base increased 12 percent to 10.8 million according to Yahoo!, and average revenues per user (ARPU) were up 4% year over year. Still, analysts are considering how much the pandemic is affecting revenue growth in 2020, and if it will continue as we go into the new year.

Dating app Hinge has partnered with popular taco chain Chipotle as well as Uber Eats to offer a new “Cuffing Season” menu and delivery service for daters. 

According to CNN, the new menu will include three special selections: “Day Date” which includes two entrees and a side of chips and salsa, “Date Night” featuring two entrees, a side of chips and queso and two Tractor drinks, and the “Hinge Date” for the solo riders, with one entrée, one side of chips and salsa, and one Tractor drink. According to Fox Business, these options will be available for free delivery or discounts at certain times during the promotion.

Match Group’s revenue numbers increased more than expected for Q3, signaling that its customers are willing to pay for premium services in the midst of a pandemic.

According to Market Watch, Match Group reported revenue of $639.8 million for the third quarter, up from $541.5 million. Analysts had lowered expectations due to the raging pandemic and continued lockdowns, with a projection of $606 million for the quarter, which Match Group blew past. 

The company also reported a net income of $132.1 million, compared to $108.5 million in the same quarter the year before. This was due in part to star app Tinder, and also to the growth in revenue the company is seeing in its other apps, particularly Hinge, which was projected to triple its revenue growth this year.

Politically active singles used dating apps to reach out to people in swing state districts and encourage them to vote.

Election Day was November 3rd, though ballots are still being counted and tensions are high as the country remains polarized politically. Activists and organizers got creative in reaching people during a pandemic, in hopes of driving high voter turnout. Connecting with young singles in swing states via dating apps seemed an effective way to engage, rather than with traditional voter outreach methods.

The term “Hinge-banking” became a popular practice according to CNN. It’s a twist on phone banking, a typical tool used to encourage voter participation – but instead using the dating app to reach singles to ask them about their voting plans.