Match beats revenue estimates as Tinder user growth picks up

Match beats revenue estimates as Tinder user growth picks up

Photo illustration of dating app Tinder shown on an Apple iPhone
FILE PHOTO: The dating app Tinder is shown on an Apple iPhone in this photo illustration taken February 10, 2016. REUTERS/Mike Blake/Illustration/File Photo

REUTERS: Match beat Wall Street estimates for quarterly revenue on Tuesday (Aug 4) and forecast current-quarter sales above expectations as its online dating app Tinder attracted more users during the COVID-19 pandemic.

Restrictions to stop the spread of the outbreak have limited face-to-face meetings, prompting more people to use dating apps as an alternative.

The company expects third-quarter revenue of at least US$600 million, above analysts' estimate of about US$575 million, according to Refinitiv IBES data.

Tinder's quarterly subscriber additions picked up after slowing down last year, with about 200,000 new users joining the app in the second quarter, taking its average subscribers to 6.2 million.

"Despite the pandemic, our user trends like engagement and willingness to pay for our products is up," Chief Executive Officer Shar Dubey said.

Match-owned apps, including Hinge and OkCupid, dominated nearly 61 per cent of the dating app market in the quarter, by measure of monthly active users, according to data from analytics firm Apptopia.

Total revenue rose 12 per cent to US$555.5 million, beating analysts' average estimate of about US$533.7 million.

Source: Reuters