(Reuters) -Match Group forecast fourth-quarter revenue below Wall Street estimates on Wednesday, a sign of weak demand for its dating apps as customers cut back on discretionary spending, sending its shares down about 11% in extended trading.
The Dallas, Texas-based company also missed third quarter revenue estimates unlike its smaller rival Bumble, which reported upbeat quarterly revenue on the back of efforts including the launch of refreshed Bumble app.
Growth has slowed at Match from the peaks hit during the pandemic, as economic uncertainty and a lack of new features prompt people to cut back on spending on its dating apps.
Match Group offers dating app services including Tinder, Hinge, OkCupid and Plenty of Fish.
The company expect revenue between $865 million and $875 million for the fourth quarter, compared with analysts’ average estimate of $905.4 million, according to data compiled by LSEG.
Total paying users declined 3% to 15.2 million in the third quarter, the company said, marking an eighth straight quarter of decline.
Match said it expect a mid-single digit decline in paying users for Tinder – its most popular app – in the fourth quarter from a year ago.
Tinder remains the largest among the dating apps cohort so far this year with 36% of total monthly active users in the United States, followed by Hinge and Bumble with 22% each, according to market intelligence firm Sensor Tower.
Third-quarter revenue of Match grew 2% to $895 million, missing estimates of $900.9 million.
The company reported a third-quarter profit per share of 51 cents, compared with estimates of 48 cents.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
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