Industry

Thirteen former employees are speaking out about Badoo, Andrey Andreev’s dating-focused social network and parent company to Bumble. In an expose published by Forbes, the employees describe a lengthy history of workplace misconduct, including sexism, racism, drug use, wild parties and a possible tax evasion scheme.

Many of the lurid details revealed in the Forbes report occurred during Badoo's period of rapid growth from 2010 to 2012. Badoo launched its iPhone app in 2010. The following year, the company soared from 20 million user signups to 100 million in four months, and earned $200 million in revenue. As Badoo grew, so did its salacious reputation. It is estimated that in 2018, Badoo had just over $300 million in revenue.

Dating app Tinder has a hook-up reputation – and because of this, users in more conservative countries in Asia might be hesitant to try the app. In response, Tinder is revamping its image to maintain its growth streak.

Dating app growth overall has slowed in the U.S. as the market becomes saturated, and it is expected to slow even more through 2022. In order to expand its opportunities, Match Group – Tinder’s parent company, has put a lot of resources into the Asian market, including hiring key executives to oversee the region and advertising its suite of apps.

Dating apps are incredibly popular, but as they saturate the U.S. market, the significant growth of the last few years is not expected to continue through 2019. Research analysts at eMarketer found that while the number of people use dating apps in the country has grown to a whopping 25 million, the market demand is starting to slow down.

According to Business Insider, apps like Tinder, Bumble and OkCupid, (all owned by Match Group), ^[1] have contributed to the growing interest in dating apps, launching new features every few months to attract new (and young) users.

Andrey Andreev, who owns popular dating apps Badoo, Bumble, Lumen and Chappy, has created a new holding company called Magic Lab.

Magic Lab seems to be positioning itself to compete directly with Match Group by offering a similar setup: a suite of diverse apps aimed at different dating markets. However, Magic Labs stated how it plans to distinguish itself in its company mission, taking aim at dating app culture overall: “The brands will focus on marketing to solve societal issues such as misogyny, stereotypes, self-doubt and ageism.”

Tinder plans to launch a new, scaled-down version of the app called Tinder Lite.

According to Tech Crunch, the new app is catering to markets where bandwidth, data usage and storage space have all been challenging, which means customers to pay a premium for access to mobile data. Some of the regions Tinder is targeting include India and Southeast Asia, where parent company Match Group has appointed three new executives and dedicated more resources to growing its brands.

Tinder Lite was initially mentioned in an investor call according to Tech Crunch. However, Match Group CEO Mandy Ginsberg shared few details about the launch or the app. There was no specific date mentioned, and no details about what features would be removed, but likely the trademark swiping and matching would remain as key elements of the Tinder Lite experience.

The Meet Group, a portfolio of mobile social entertainment apps including MeetMe, LOVOO, Skout, Tagged and Growlr, released financial results for its first quarter ended March 31, 2019. The company reported revenue of $49.5 million, an increase of $11.9 million (or 32 percent) from $37.6 million in the first quarter of 2018.

Other highlights from The Meet Group’s Q1 2019 financial report include:

• GAAP net income of $1.3 million, or $0.02 per diluted share, compared to a GAAP net loss of $4.2 million, or a loss of $0.06 per diluted share, in the prior year quarter.
• Adjusted EBITDA of $8.1 million, compared to Adjusted EBITDA of $5.2 million in the prior year quarter.
• Non-GAAP net income of $7.0 million, or $0.09 per diluted share, compared to $4.1 million, or $0.05 per diluted share, in the prior year quarter.