Match Group, which owns multiple dating apps including Tinder and Hinge, released its first-quarter earnings report on Tuesday, showing that Tinder's paid user base has declined for the sixth straight quarter. Meanwhile, Hinge is seeing more members willing to pay for the app. His Tinder had 10 million paid users in the first quarter of 2024, which is a 9% decrease from the previous year. Meanwhile, Hinge now has 1.4 million paying users, an increase of 31% year over year.
Tinder's decline was foreseeable due to changes in dating app culture that have occurred in recent years. Younger users are more interested in pursuing serious, long-term relationships than casual hookups, and that's what sets Tinder apart. Since its inception, Hinge has become popular among users looking for more connectivity.
While Tinder struggles to retain paying users, Hinge is on track to become a “billion-dollar business,” its CEO said on a conference call with investors Wednesday morning. ) was promoted by Bernard Kim. Hinge has seen significant revenue growth over the past six years, with direct revenue increasing 50% year-over-year to his $124 million in the first quarter. In 2023 alone, Hinge brought in his $396 million in revenue.
One of the challenges Tinder currently faces is convincing members that its “a la carte” (ALC) features and in-app purchases, including Super Likes, Boosts, and “See Who Likes” are worth it. is. ALC's revenue represents about 20% of Tinder's direct revenue. However, his ALC revenue for the first quarter of 2024 decreased by 13%. This is in contrast to 2018, when a la carte purchases hit an all-time high.
Match Group Chief Financial Officer Gary Swidler acknowledged on a conference call that sluggish a la carte revenue growth has been on a downward trend for quite some time. However, it has become “more severe recently” and “prevents me from performing very well.”
“We believe ALC's revenue decline is due to fewer users and lower average purchase volume, in part due to lower consumer discretionary spending among younger demographics,” Swidler said, adding that Tinder's It added that payers are expected to see a decline in interest rates in the second quarter as well. The company expects to see signs of improvement in the third quarter.
The main reason for going a la carte was to meet the needs of the price-conscious Gen Z and gain exposure to potential matches at a lower price point. Match will continue to introduce new a la carte features to Tinder over the coming quarters “at affordable prices,” Swidler added.
However, instead of adding more options, Tinder might want to consider its sister dating app, Hinge. Hinge only offers her two a la carte features: Boosts and Roses.
Tinder has made several attempts to improve the overall experience of its product, including adding new safety features such as “Share My Date,” which allows users to share their date plans with friends. Later this summer, the app will require a headshot for everyone's profile. It will also launch his AI photo selector feature where he selects the 10 best photos from the user's camera roll to improve the quality of the profile.