Finances

Beijing-based social app Momo is the latest company to see its revenue fall for the first quarter of 2020 due to the economic repercussions of a global pandemic. Interestingly, while other social networks and dating apps have seen an increase in users over the same period, Momo reported a decline there, too.

According to PanDaily, Momo’s net revenues decreased by 3.5% year over year to $3.59 billion Chinese yuan. The bulk of the revenue  - 64.9% - came from live-streaming services on Momo and its popular dating app Tantan. Tantan on the other hand reported an increase in revenue in the first quarter of 29.3 percent from Q1 of 2019. Tantan contributed 10 percent of Momo’s overall revenue for Q1 of 2020.

Tinder Introduces Global Mode

Image: Tinder

Tinder announced that it will soon be rolling out its new Global Mode feature which allows Tinder users to match with anyone regardless of where they live, with no geographical limitations.

Global Mode will allow users to opt in for their profiles to be visible to users around the world, and will allow them to match with people from other countries, according to The Verge. It differs from Passport, which allowed users to pick a city (typically a travel destination) so that they could match with people in that specific location. Global Mode expands this capability without limits, and it’s free.

Tinder has announced that it will be releasing a new video chat feature in the second quarter of this year. This news comes as people around the world continue to socially distance in the wake of the coronavirus, and as its parent company Match Group shared that the app’s subscriber growth had slowed.

Match Group didn’t give specifics about Tinder’s new video chat feature and what it would look like, but they did indicate they were testing the waters with a new video chat platform on another one of its apps, Plenty of Fish. POF offers a live stream video platform where users can observe and weigh in with likes and comments on other user’s live streams. The app is also offering a virtual speed dating feature called NextDate, which allows users to meet and talk briefly with several matches before deciding whether to take the video chat to a one-on-one conversation.

As dating app usage spikes worldwide in the wake of the COVID-19 pandemic, dating app companies are examining whether this means revenue will increase, too. Match Group recently posted a memo to all of its users that while usage is up, new (and paying) subscribers are down in the countries most affected by the pandemic, including Italy, Spain and the UK.

According to Seeking Alpha, Match Group was leading the pack a year ago with revenue increasing year over year in the billion-dollar dating app industry. And now, across the globe its star dating app Tinder is seeing a spike in user activity. It reported a record 3 billion swipes in one day on March 29th. But revenue hasn’t increased along with it.

Match Group’s revenue is gathered in two ways – from advertising on its free platform, and for charging users for premium services on its tiered services – Tinder Plus and Tinder Gold. Users can also purchase in-app a la carte options for certain features like Passport, but right now, Tinder is offering this particular feature free for all users. 

Coronavirus has taken over newsfeeds and has affected all of us, no matter where we live. Now, it seems to be changing how dating apps operate, too.

Dating.com recently reported an 82 percent increase in dating app usage around the world since the beginning of March, when countries began putting restrictions in place. And as Forbes points out - dating apps are moving fast to offer new ways of virtual connection to attract more users and to keep them engaged, now that they have your attention.

Conversations over dating apps have increased. Tinder reports a 20 percent increase in daily messages worldwide. Since March 12th, Bumble has reported a 21 percent increase in both messages sent as well as usage of its new Voice Call and Video Chat features, according to Daily News. New York City – where the current epicenter of the coronavirus outbreak is - had a 23 percent increase in sent messages. And Bumble Bizz reported an even higher spike in activity – a 57% increase in usage over the last few weeks – because people are thinking about their careers and livelihoods as well as dating.

Grindr is set to sell for $608.5 million. The sale comes after the US government expressed national security concerns regarding Beijing Kunlun Tech’s ownership of the gay dating app. San Vicente Acquisition Partners — a group of entrepreneurs and investors in the technology, media and telecommunications industries — will acquire a 98.5 percent stake in Grindr in the deal. 

Kunlun is one of China’s largest mobile gaming companies. The company took a majority stake in Grindr in 2016 for $93 million. In 2018, Kunlun purchased the remaining percentage of the popular dating platform for $152 million. The agreement was met with apprehension on the part of journalists, China experts and former intelligence officials, who suggested that it put the Chinese government in a position to demand sensitive data about the app’s users, including those who are not Chinese citizens.