Tinder wants to reverse the continuous decline in active users by turning its eyes on AI. Over the coming quarter, match-owned dating apps will roll out new AI-powered features for discovery and matching. This additional purpose is to provide fatigued singles with an alternative to “swipe” that previously defined dating apps and influenced adopting gestures across the industry.
In its fourth quarter revenue release, the company noted that the recommendations recommended by AI will provide a more “personalized and attractive match.” Match Group CFO Gary Swidler told investors that it offers “something other than swipe” as a way for users to meet with its AI-driven matching capabilities.
However, he made it clear that AI matching is a complement to the swipe, not the exchange.
“A considerable number of people are involved in it and want to try it out, and we also want to see improvements in quality games,” Swidler said. “We want to see the product really being offered to people in terms of high quality matches that will increase product recognition.
There is also another AI feature listed in the call: the AI Photo Finder. This will help users choose the best profile picture for their dating profile. It was released last year.
Adding AI-powered will be a challenging time for Tinder and the dating app industry as a whole.
Over time, young singles have become tired of online dating, but they no longer feel spontaneous and fun, and instead seem like work. Among safety and privacy concerns, bad behavior from fellow users of dating apps and the perception that these apps actually presented the illusion of choice when the match was more limited. Inside, consumers are leaving Tinder and others behind.
During the call, the company acknowledged that Tinder's global user growth is still declining.
In October, Tinder's monthly active users (MAUS) fell 10% year-on-year. This is a slightly increased number to decrease by 9% over the next two months.
The app then waned “about 8%” in January, with executives trying to spin as a positive signal.
Tinder's direct revenue also missed the company's internal guidance and came in at $476 million, below the forecast range of $480-$485 million.
“We want to see us return to growth, but we think we need to take a step forward for babies first. We need to deploy these product initiatives. Drives with improved user trends “We need to check,” Swidler said of the new products that include AI discovery and matching features. The company also plans to make the “Musical Friend” feature more widely accessible.
As part of an attempt to revise course, Match Group, named Spencer Rascoff, co-founder of Zillow Group, has named it as the new CEO.
Raskov spoke boldly about the possibility of online dating with AI, saying, “This Cambrian explosion is the same kind of business that Match Group has shifted from desktop to mobile as it shifts from our categories and mobile. It allows you to have inflections. Other categories from around ten years ago – when mobile surpasses desktop.'
That's a pretty gamble.
He pointed out other consumer mobile apps such as Tiktok, Instagram and Snapchat. This has benefited from AI capabilities in both engagement and retention, adding that it “sees the same possibilities for us.”
While game executives may be optimistic, it is clear that the dating app market is heading for change.
Beyond Tinder's decline, the company missed fourth quarter estimates, earnings of 82 cents per share, below 84 cents analyst expectations. It produced revenue, bringing $860 million in the quarter, but above estimates representing a 0.7% decline from the previous year. In its first quarter 2025 guidance, the company plans to earn $830 million to $820 million, down 3-5% year-on-year, thanks to Tinder's negative MAU trends. I mentioned.