Tinder Parents Competition Reduces Workforce by 13% and Forecasts Income More Estimated
May 8 (Reuters) – Thursday’s Game Group predicted revenue in the second quarter was higher than Wall Street’s estimates and said it would reduce its workforce by 13% to reduce costs as Tinder parents ploughed in their business remodeling plans.
Since new CEO Spencer Rascoff took over in February, the layoffs were the first major structural change in the game and were responsible for addressing the slowdown in user engagement.
The online dating industry is in a dilemma due to ongoing inflation, the lack of innovative features pushing consumers away from dating apps like Tinder and Bumble.
In response, Match and Bumble have been refining their applications and introducing AI features such as AI-abled Discovery to make it easier for users to improve their dating outcomes.
Match also has Dating Apps Hinge and OkCupid, which introduces features such as “double dates” and game games, a voice-based experience that allows users to practice flirting with AI dates to better meet Gen-Z audiences.
CEO Rascoff said the dual date feature allows users to work with friends and match other pairs, resonating with younger audiences, with 90% of users’ dual date profiles coming from under 29 years of age.
Its revenue per paying user increased from $18.87 a year ago to $19.07.
In the second quarter, the company forecast revenue between $85 billion and $860 million, higher than analysts’ average estimate of $846.7 million, according to data compiled by LSEG.
Match is also testing new features to improve its security and verification procedures and reduces bad actor reports by more than 15%.
In the quarter ended March 31, the company’s revenue fell 3% to $831 million, or an estimated $827.5 million.
Competitor Bumble reported Wednesday that revenue fell more than 7% in the first quarter, but estimates the market estimates. (Reported by Kritika Lamba in Bangalore; Editor of Devika Syamnath)
