Finances

Hinge and Grindr are two standout dating apps as they continue to grow in a tough market; powerhouses Tinder and Bumble are seeing more users leave their platforms.

In general, dating apps have had a rough couple of years, with the coveted Gen Z market looking to other options besides dating apps to meet singles, including in-person events, running clubs, and social media platforms like LinkedIn.

“Online dating trends have continued to decelerate industry-wide, showing minimal relief from the recent struggles,” wrote Morgan Stanley analysts Nathan Feather and Brian Nowak in their research, according to Quartz.

A majority of dating platforms have signed on to a new dating safety code in Australia, in an effort to crack down on dating app users who violate policies.

According to News.com, dating app users who “harass, threaten, or share unwanted explicit photos” could have their accounts terminated across multiple platforms at the same time, intended to create a safer space overall for online dating. Seventy-five percent of companies operating in Australia have signed on to the new industry standard, including Match Group (which operates Tinder, Hinge and OkCupid among others), Bumble and Grindr.

A recurring problem with dating apps is user safety, specifically surrounding the growing number of users who receive unsolicited images. If a perpetrator is banned from one platform, they can easily move on to other platforms, so the new safety standard is intended to prevent this from happening.

Dating app Grindr was ordered to pay a $5.7 million fine by a Norwegian Court, after the company was found to have violated EU regulations by sharing personal user data with third parties.

The court found that Grindr violated the GDPR by sharing sensitive data with third party advertisers, according to Agence-France Press. Norway’s data protection agency Datatilsynet found that the company had shared information such as geographical location, age, sexual orientation and health information such as HIV status with advertisers.

Grindr was accused of sharing this data between 2018 and 2020.

Bumble is expanding its focus with the acquisition of Geneva, a platform built around connecting people with groups and clubs to help “build community.”

According to Tech Crunch, the acquisition further expands Bumble’s platform beyond dating in the hopes of gaining new users and growing revenue. As Tech Crunch noted, the company laid off a third of its workforce earlier this year, and has been struggling to increase its paying userbase along with other dating apps.

The terms of the deal were not disclosed with the announcement according to Tech Crunch, but as it pointed out, Bumble CEO Lidiane Jones has said that the company will be pursuing acquisitions to drive growth. This new purchase indicates the company is interested in community-building on its platform, likely to drive engagement.

Image: Hinge

Match Group announced in its first quarter earnings report that Tinder’s paying users were down for the sixth quarter in a row, but Hinge’s paying users continue to rise.

According to Tech Crunch, Hinge has seen a whopping 31 percent increase in paying users year over year, now up to 1.4 million. This is far less than Tinder’s 10 million paying users, but as Tinder continues on its downward trend, its paying users dropping 9 percent from this time last year, Hinge offers a beacon of hope.

Dating apps in general have struggled in the last year, and companies like Match Group and Bumble have been trying to address it with more exciting paid features and additional security protocols, like Verification on Tinder. However, dating app users continue to drop their subscriptions and opt not to pay for features, especially younger users who are turning to free platforms like social media apps to connect.

Dating app Tinder continues to lose paying subscribers according to Match Group’s latest earnings report. Match Group’s overall revenue for Q1 has been impacted by Tinder’s ongoing struggles, but it continues to hold strong in the dating app market overall.

According to Fast Company, Match Group said that Tinder’s paying user base for the first quarter fell 9 percent from the same quarter last year. The company’s CEO Bernard Kim remained optimistic, saying that they expect to slow user declines in the second half of the year.

However, Match Group’s revenue is up, with net income at $123.2 million for the first quarter of 2024 compared to $120.8 million this time last year, according to Marketwatch. Revenue rose 9 percent for the company to $859.6 million, compared to $787.1 million the same time last year. (Match Group revenue also beat overall analyst expectations of $855.8 million.)