How did Match Group perform in the fourth quarter?

Match Group Inc. reported fourth-quarter results that surpassed analyst expectations, with revenue reaching $878 million.

Which app was a standout performer for Match Group?

The app Hinge was identified as a standout performer, contributing significantly to Match Group's revenue growth.

What is Match Group's strategy for improving user engagement?

Match Group is implementing a turnaround strategy focused on product development, enhancing user safety, and integrating AI features, particularly to re-engage younger daters.

Home / Business and Economy / Match Group Beats Expectations Amidst Dating App Shift

Match Group Beats Expectations Amidst Dating App Shift

4 Feb

Summary

Match Group's Q4 revenue surpassed $878 million, exceeding Wall Street forecasts.
Hinge emerged as a standout app, driving revenue growth for the company.
Despite user declines, revenue per subscriber increased significantly.

Match Group Beats Expectations Amidst Dating App Shift

Match Group Inc. announced fourth-quarter results that surpassed analyst projections, indicating early success for its strategy to re-engage younger daters.

The company reported revenue of $878 million for the three months ending December 31, exceeding the anticipated $871.4 million. A key driver of this growth was its app Hinge, which has shown considerable momentum. This performance occurred even as the total number of paying users experienced a steeper-than-expected decrease.

Despite a dip in overall user numbers, Match Group managed to increase its revenue per subscriber. The company also declared a cash dividend of 20 cents per share, payable on April 21 to shareholders of record as of April 7.

Under new CEO Spencer Rascoff, appointed early last year, Match Group has been implementing internal reorganizations and management changes to accelerate product development. Efforts are focused on reversing subscriber declines, particularly at Tinder, and adapting to generational shifts in dating preferences.

Future plans include enhancing user safety, with mandatory face verification for new Tinder users in the US, and integrating more artificial intelligence features across its platforms. Successful testing of new features in Australia, through Project Aurora, has provided evidence that a product-led turnaround is achievable.

The company projects first-quarter revenue between $850 million and $860 million, with adjusted EBITDA anticipated to be $315 million to $320 million. This forecast aligns with or exceeds analyst expectations.

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