Memberships

Bumble’s stock jumped 20 percent after an earnings report from the company showed an increase in revenue for the fourth quarter of 2021, finishing far ahead of analyst expectations.

According to Yahoo!, Bumble’s overall revenue for Q4 in 2021 increased 25.7 percent to $208.2 million compared to $165.60 million for the same quarter the year before, including the negative impact from foreign currency movements year over year. Total paying users also increased 10.6 percent to 3 million, compared to 2.7 million at the end of 2020. Total average revenue per paying user (ARPPU) was $22.83 in Q4 2021, compared to $20.02 in Q4 2020.

While Badoo’s app revenue decreased 3.5 percent to $57.7 million compared with $59.8 million from 2020, Bumble app revenue was on the upswing with a 42.2 percent increase in revenue to $150.5 million in the fourth quarter last year, compared to $105.8 million the year before, not only offsetting but far surpassing the losses.

An investigation by a UK consumer rights group found that dating app Tinder is charging users over 30 as much as 48 percent more for its premium service Tinder Plus.

The advocacy group Which? said its findings show that Tinder may be discriminating against older users, a “potential breach of UK law,” according to The Daily Mail. The group has reported its findings to the EHRC (Equality and Human Rights Commission) and the Information Commissioner’s office (ICO) and asked them to investigate. The EHRC found the findings “concerning,” according to The Daily Mail.

Which? asked a sampling of 200 people to create real profiles on the dating app and to find out the pricing for the premium services like Tinder Plus, which unlocks certain popular features like unlimited likes and the ability to “rewind” or go back to check out a profile you already swiped left on.

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.

Several of Japan’s largest companies have turned to an AI dating app to help their employees find love during the pandemic.

According to Kyodo News, about 800 companies have signed up to offer the app Aill goen to employees, with the aim that they will be happier and more productive workers if they are in a good relationship. Companies are also hoping the dating app will provide a way to help employees who might be struggling with their mental health, since they have been unable to physically interact with others because of lockdowns.

The pool of matches will be limited only to participating company employees, providing a level of safety and accountability for users of the app. Aill goen is being offered to employees as part of their benefits package at work, according to Kyodo News. 

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.