China

Popular gay dating app Grindr has disappeared from China’s app stores, including the Apple Store, as government officials tighten control over online behavior. 

Chinese officials said there were compliance issues with Grindr regarding China’s Personal Information Protection Law, according to Bloomberg. The law requires that data stored in applications that is transferred to other locations be approved by government officials, and it limits the amount of personal data stored in apps.

In addition, China’s Internet authority began a month-long campaign to identify and eliminate any illegal and sensitive online content, according to the Bangkok Post. This move comes at an interesting time, coinciding with the celebration of the Beijing Olympic Games and the Lunar New Year.

China-based dating app Yumi has started beta testing experiences in its new metaverse, called Meta Town, hoping to attract young Gen Z daters who are interested in immersive experiences.

Users can create avatars based on their photos, explore the metaverse to find other virtual daters, and have real-time audio conversations with “artificial intelligence-powered translation,” according to the South China Morning Post, making it easier for daters who don’t speak the same language to connect.

The metaverse is a platform where people can interact via avatars in real time and in different virtual spaces, often with the ability to exchange virtual goods and services. 

The online dating market continues to grow in the wake of the pandemic, with expected revenue to increase to $4.5 billion US by 2025.

According to research firm Statista, the industry is expected to reach about $3.7 billion US this year (up from $2.86 billion in 2020) as more people join and become active users, in part due to global lockdowns. The pandemic has shifted attitudes towards dating apps, with more singles than ever before downloading and swiping.

Revenue has increased along with new users, as many of the apps are offering popular “freemium” pricing in addition to subscriptions. While the majority of users don’t want to commit to paying a monthly fee to join a dating app, they are willing to pay for certain features, like messaging, being able to see if someone already liked their profile, or putting their profile at the top of search lists. Offering these services as premium paid features has been a boon for dating apps, increasing overall market revenue substantially, especially during the pandemic.

The dating app industry is expected to grow to over $11 billion by 2028, thanks to the increased use of smartphones and people turning to them for connection during the pandemic.

A new report by Grand View Research found that the industry is doing better than ever and will only continue to grow at a rate of 5.6% compound annual growth rate (CAGR) through 2028. The increasing global reach of smartphones and internet access has helped to propel the industry forward, as well as pandemic lockdowns and the increased interest in virtual dating.

The study also found that the 18- to 25-year-old market is expected to register the second largest CAGR of 5.8 percent over the same period. Dating apps have their eyes on Gen Z daters who are looking for something more engaging than the typical routine of swiping through profiles on an app, as they have grown up with smartphones and virtual experiences. Many of the new offerings that apps like Tinder are unveiling include interactive content. Tinder and Bumble have both recently announced that they will be offering experiences in the metaverse where daters can create avatars and meet in virtual spaces to date.

Dating app Bumble had a rough third quarter, with total paying users down 2 percent from the second quarter. It was the first time the company saw a decline in its user base since going public in February of this year.

According to Reuters, total paying users fell to 2.9 million as the pandemic surge prompted new lockdowns in hard-hit countries. The company says the pandemic surge caused an overall drop in consumer spending on dating apps and in-app purchases. This news spooked investors and sent Bumble’s stock tumbling 9 percent, a 32 percent total decline since its IPO.

The company owns popular dating app Badoo which was hit especially hard due to its popularity in markets affected by the Covid surges. Badoo accounts for about a quarter of the company’s total revenue according to Barron’s.

Dating app conglomerate Match Group has lowered their expected earnings for Q4, according to an earnings call with investors. The company said the adjusted forecast resulted from decreased revenue in Asian markets due to the pandemic. Shares declined 6 percent with the news.

According to Reuters, Match Group adjusted fourth quarter earnings revenue between $810 and $820 million, below analysts’ forecast of $838.5 million per Refinitiv. The company expects revenue for 2021 to be around $3 billion.

In the third quarter, revenue rose 25 percent, but still missed expectations. Match Group added 16.3 million paid users and revenue per person rose 8 percent. Their quarterly earnings came out to $.53 per share, missing the Zacks Consensus Estimate of $.60 per share, and has dropped from earnings of $.55 per share a year ago.