Match Group, Tinder’s parent company, beat revenue estimates for the last quarter as more users looking for matches took out paid subscriptions on the popular dating app.
Their results were an outlier in what has been a quarter of poor performance for some of the biggest tech companies in the US. Match Group, who own a suite of dating apps including Hinge and OKCupid, saw their shares rise 16% on Tuesday.
The results are welcome news for Tinder, which has been rocked this year by executive changes. In August, chief executive Renate Nyborg stepped down after less than a year in the job. Inflation and cost of living concerns have also put pressure on spending in apps.
Match Group’s revenue came in at $810 Million for the three months, beating the average analyst estimate of $793 Million, according to Refinitiv data.
The company, however, forecast flat revenue growth for Tinder in the coming quarter.
Chief executive Bernard Kim and finance chief Gary Swidler warned that a weakening global economy was hitting Match’s brands that serve lower income consumers, while also weighing on discretionary spending across its apps.
The number of users paying to use Tinder jumped 7%, and revenue grew by 6%, aided by the return of a feature that lets people use the app on their desktops. Tinder offers three tiers of its paid subscription service, which give users features such as unlimited likes and, at some tiers, allow users to see who has “liked” them.
Last week Meta, Alphabet and Microsoft saw billions wiped off their values as fears of a global slowdown hit the world’s biggest tech companies. The five biggest tech stocks crashed by a combined $950bn at their lowest point.
Match plans to tackle the coming slowdown with reductions in headcount related expenses and marketing spend. The company added that a search was ongoing for a new Tinder CEO, a position that remains vacant.
