Match Group forecast fourth-quarter revenue below Wall Street estimates on Wednesday, signaling weak demand for its dating apps as customers cut back on discretionary spending.
Shares of the Dallas, Texas-based company, which offers dating app services including Tinder, Hinge, OkCupid and Plenty of Fish, fell 9.8 per cent in extended trading.
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 amid high inflation.
The company expects 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 per cent 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.
Third-quarter revenue grew 2 per cent to $895 million, missing estimates of $900.9 million.