Tinder-parent Match forecasts weak revenue on lower spending on dating apps
(Reuters) - Tinder-parent Match Group forecast first-quarter revenue below Wall Street expectations on Tuesday as users of dating apps cut back spending amid economic uncertainty.
The company also authorized a $1 billion share buyback plan.
Match has been competing with dating apps operator Bumble, which is regarded as female oriented, against the backdrop of rising prices affecting non-essential purchases.
The company tapped insider Faye Iosotaluno as CEO of Tinder earlier in January, in a bid to turn around its biggest and most popular app Tinder, which has been scrambling to retain paying subscribers.
Match, which offers dating apps including Hinge, Tinder, OKCupid and Plenty of Fish, said its payers declined 5% in the fourth quarter to 15.2 million from a year earlier.
It expects revenue in the range of $850 million to $860 million for the first quarter compared with analysts' average estimate of $867 million, according to LSEG data.
It forecast 2024 revenue of between $3.57 billion and $3.67 billion, representing a growth of 6% to 8% compared with an estimate of 7.8%.
Match's fourth-quarter revenue grew 10% to $866.2 million, beating estimate of $861.2 million. Profit per share came in at 81 cents per share compared with 30 cents a year ago.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Arun Koyyur)
