Industry

Match Group released its first quarter revenue forecast, falling below Wall Street analyst expectations as users continue to cut back on their dating app spending.

According to Reuters, the company also authorized a $1 billion share buyback plan.

The company, which owns Tinder, Hinge, OkCupid and Match among other dating apps, said paying users declined 5 percent in the fourth quarter of 2023 compared to the previous year, to 15.2 million. It expects revenue between $850 and $860 million for the first quarter, down from analysts’ forecasts of $867 million on average, according to Reuters.

OkCupid just celebrated its 20th anniversary and released some interesting dating trends as we start 2024, driven mostly by its younger users. The irreverent dating app has attracted a wide array of singles over the years, thanks to its unique question and answer format for people to get to know each other.

The dating app surveyed close to one million of its users and found that almost 80 percent consider themselves independent daters, and those who declare themselves as independent are receiving 5 percent more likes compared to people who say they aren’t.

In fact, according to the company's blog post, in 2023 there was a 181 percent increase in mentions of “independent” on OkCupid profiles, which points to healthier dating trends in 2024. Other dating apps have also found their users (especially younger Gen Z daters) want to focus on their mental health and well-being before getting involved in a new relationship, so it seems to be a trend.

Image: eHarmony

eharmony unveiled a new ad for its dating app in time for dating’s busiest season, but the LGBTQ+-led campaign did not go over well with Christian groups.

The ad features a lesbian couple snuggled up on the couch waiting for their laundry to finish. When the buzzer goes off, one partner gets up to retrieve the laundry while the other lies on the bed, waiting and smiling. Then her partner unloads all the clean laundry on her, and she is elated and taking in the warmth of the clothes fresh out of the dryer. The tagline for the ad is: “Get who gets you.”

According to The Pink News, despite the cute and feel-good premise, right wing Christian activist group One Million Moms has launched a petition to remove the ad from the air, and so far have received over 12,000 signatures. The organization claimed that the ad was airing during “prime time” when children were likely to be watching television and was “crossing a line that eharmony should have never crossed,” according to the petition.

The U.S. State Department has issued a warning to international travelers to avoid using dating apps when traveling to Colombia. The warning comes after a series of eight deaths in the country were linked to dating apps.

According to CBS News, the deaths took place in Medellin, Colombia’s second-largest city, and resulted from a forced overdose and suspected homicides. Other incidents have taken place in Bogota and Cartagena, according to reports. Though the deaths themselves do not seem to be linked, they all involved the use of dating apps luring travelers to meet.

“Numerous US citizens in Colombia have been drugged, robbed, and even killed by their Colombian dates,” the embassy said in its notice. The embassy also noted that many crimes like this go unreported, as victims are too embarrassed to contact authorities.

Shares of Match Group rose as much as 12 percent after The Wall Street Journal reported that Elliott Management had invested almost $1 billion in the company.

According to the report, Elliott has a long history of success in tech investments, including in Salesforce and Pinterest. The Match Group investment showed signs of promise to investors who have recently shied away from dating app companies in the wake of decreasing revenues and management turnover. As a result, share prices for Match rose as high as 12 percent and ended the day up 3 percent.

According to CNBC and The Wall Street Journal, Elliott plans to engage with Match Group’s management, but it is unclear as to how involved they will be, and if that would include nominating its directors. Match Group recently appointed a new CEO for Tinder, so Tinder’s previous acting CEO Bernard Kim can focus his attention on Match Group’s entire suite of apps, which include Hinge, OkCupid, Match and BLK.

Image: Tinder

Match Group has promoted Faye Iosotaluno to head up Tinder as its new CEO, replacing Match Group CEO Bernard Kim.

According to Tech Crunch, Iosotaluno has been at Match Group since 2017, and was promoted from Tinder’s chief strategy officer to the company’s chief operating officer in 2022, when former CEO Renate Nyborg left. Kim has been acting CEO of Tinder until a replacement for Nyborg was made.

“Faye’s understanding of the dating category is unparalleled and coupled together with her remarkable leadership capabilities, I know Tinder will continue to lead the category,” said Kim in a statement.