Match looks to Hinge as Tinder fails | TechCrunch

🌈 Abstract

The article discusses the recent financial performance of Match Group, the company that owns several dating apps including Tinder and Hinge. It highlights the decline in Tinder's paying user base and the growth of Hinge's paying user base.

🙋 Q&A

[01] Tinder and Hinge Performance

1. What are the key trends in Tinder and Hinge's paying user base?

• Tinder's paying user base has decreased for the sixth quarter in a row, down 9% year-over-year to 10 million paying users in Q1 2024.
• Hinge's paying user base has increased by 31% year-over-year to 1.4 million paying users.

2. What are the reasons behind the decline in Tinder's paying user base?

• Younger users are more interested in pursuing serious, long-term relationships instead of casual hookups, which is what Tinder is known for.
• Hinge has gained popularity among users looking for more substantial connections.

3. What are the revenue trends for Tinder and Hinge?

• Hinge's direct revenue grew 50% year-over-year to $124 million in Q1 2024, and it is on track to become a "$1 billion revenue business".
• Tinder's "à la carte" (ALC) revenue, which accounts for about 20% of its direct revenue, decreased by 13% in Q1 2024.

[02] Tinder's Challenges

1. What are the challenges Tinder is facing with its "à la carte" features?

• Tinder is struggling to convince members to see value in its "à la carte" features or in-app purchases, such as Super Likes, Boosts, and "See Who Likes You".
• The weaker growth in "à la carte" revenue has been a downward trend for Tinder, becoming "more severe of late" and "hindering us to perform very well", according to the company's CFO.
• The decline in "à la carte" revenue is attributed to user declines and lower average purchase volumes, partly due to weaker consumer discretionary spending among Tinder's younger user base.

2. What strategies is Tinder considering to address these challenges?

• Tinder plans to continue introducing new "à la carte" features at affordable price points in future quarters.
• Tinder has also made attempts to improve the overall product experience, such as adding new safety features and launching an AI Photo Selector feature.
• However, the company's forecast for Tinder revenue in the coming quarter indicates growth will be flat or only up by 1%, at $475 million to $480 million, respectively.