Online Personals Watch: News on the Online Dating Industry and Business

Match Group Faces Pressure to Revive Tinder Amid Investor Scrutiny

BNN BLOOMBERG - Match Group faces heightened expectations at its investor meeting, with analysts and activist investors demanding a clear turnaround plan for Tinder, which has struggled with declining subscriber growth despite recent updates. The company's market value has fallen by $41B since 2021 due to frequent leadership changes and limited product innovation. Activist investors, including Starboard Value, are pushing for growth and have proposed a sale if improvements fail. Tinder's new CEO has a limited window to demonstrate progress as analysts call for a credible strategy to stabilize user trends by 2025. Other concerns include capital allocation, growth for Hinge, and expansion in Asia, but Tinder remains the primary focus as Match works to restore investor confidence.

by Natalie Lung
See full article at BNN Bloomberg

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'It Feels Like Admin': Why Are People Falling out of Love With Dating Apps

THE GUARDIAN - ~1.4M people in the UK left online dating in the past year, as experts say users view it more as a chore than a social activity. Ofcom's 2024 Online Nation report reveals a 16% decline in the use of the top 10 dating apps between 2023 and 2024. Tinder saw the largest drop, losing over 500K users since May 2023, while Bumble and Hinge lost 368K and 131K, respectively. Researchers at the University of Leeds' Centre for Love, Sex, and Relationships (CLSR) attribute the decline to user fatigue and a sense of detachment from reality. Natasha McKeever, a lecturer at CLSR, notes that virtual dating feels more like a task than a social experience. Another factor is the monopolization of dating apps; Match Group accounts for over half of the 7.27M users of the top 10 apps in 2024.

by Raphael Boyd
See full article at The Guardian

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Q & A With Hinge CEO

SEMAFOR - Hinge CEO Justin McLeod believes AI will revolutionize online dating, making it more effective than meeting people in real life. AI will enable smarter, personalized matches and provide tools like real-time coaching to help users navigate their dating journey, from writing profiles to planning dates. Despite criticism over paywalls, McLeod clarifies that free features remain unchanged, while premium options aim to enhance user experience without diminishing matchmaking quality. He emphasizes that AI should assist connections rather than distract or replace human interaction.

by Rachyl Jones
See full article at Semafor

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Gen Z Is Breaking up With Dating Apps, Ofcom Says

THE GUARDIAN - Ofcom reports a decline in the use of top UK dating apps like Tinder, Hinge, Bumble, and Grindr, with Gen Z increasingly favoring real-life connections. Tinder lost 600K users, and Hinge dropped by 131K since 2023. Analysts suggest the novelty of dating apps is fading for younger users, who now romanticize in-person interactions. Apps still appeal to younger adults, reaching 18% of 18-24-year-olds, but challenges like safety concerns and overwhelming choices persist. Match Group acknowledges the shift, aiming to create lower-pressure, more authentic experiences for Gen Z users.

by Dan Milmo
See full article at The Guardian

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New Dating Apps Betting on Matchmaking

BUSINESS INSIDER - Several new "matchmaking" dating apps have launched in the past year, addressing dating-app fatigue. Sitch is an AI matchmaking app launched in New York in November. Cheers is an app that lets friends play matchmaker in a social-media feed, launched in October. Facebook Dating even launched a matchmaking feature last month. Tinder's cofounder and former CEO, Sean Rad, said on a September episode of the 20VC podcast that he had always imagined the dating app moving beyond swiping and into matchmaking. In 2017, Hinge launched a stand-alone app called Matchmaker that lets friends swipe for each other. It appears to have since shut down. Tinder, also owned by Match Group, launched a similar feature in 2023.

Loop is a matchmaking app where everyone can set up their single friends. Only a third of the user base are singles; the rest are friends and family members or even professional or hobbyist matchmakers. Loop launched in 2023 and is currently free for all users.

Arrange should launch in December and will let users link their profiles with a "scout," a trusted friend or family member, who can talk with potential matches ahead of time and vet for compatibility.

Amori is a dating-advice app with characters users can chat with, is experimenting with matchmaking using a personal assistant (though it isn't live within the app yet).

by Sydney Bradley & Daniel Latu
See full article at Business Insider

Match Shares Tumble, Signaling an Opening for Dating Startups

BUSINESS INSIDER - Match and Bumble stocks wavered. Tinder expects another drop in paying users in Q4. A 2024 Forbes Health survey reported 78% of Americans felt exhausted by dating apps. Match Group shares dropped 18% Thursday after Tinder paying users fell 4% to 9.9m in Q3. Hinge Q3 revenue grew 36%. Bumble saw 10% paying user growth to 2.9m. ARPU dropped 10%. Revenue was flat, dropping 0.7% to $274m.

Hinge now limits users' simultaneous match conversations to reduce unanswered messages to help "daters shift their mindset from quantity to quality of matches" and follow through with their matches. This is helping increase response rates on the app.

Earlier this year, Bumble acquired Geneva, a group chat app for niche communities for $17m. Bumble founder and chair Whitney Wolfe Herd said we "will not be a dating app in a few years" but rather for "human connection." CEO Lidiane Jones said the company will "enable the next generation of online-to-real-world connections."

by Dan Latu, Katie Balevic & Sydney Bradley
See full article at Business Insider

Mark Brooks: Dating companies need to persuade the public they have their best interests at heart. User sentiment is changing. We need to solve the continuity problem by broadening our perspective while increasing our sheer utility in dating. AI is the future.

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Match Group Q3 Financial Results

MATCH GROUP - In Q3 2024, Match Group's revenue grew by 2% YOY, reaching $895M. The period saw a 3% decline in total payers to 15.2M, while revenue per payer increased by 5% to $19.26. Operating income fell 14% to $211M due to impairment costs associated with phasing out certain live streaming services, although adjusted operating income rose 3% to $343M. Share repurchases continued, totaling $241M for the quarter.

Tinder's performance showed improvement, with a 4% decline in payers, less than Q2's 8% drop. Hinge achieved significant growth, with direct revenue up 36% YOY and reaching record downloads in the U.S. and Europe. Match Group Asia saw steady growth for Azar, especially in Europe, while Evergreen and Emerging brands continued expanding into specific demographic markets.

Match Group expects Q4 revenue between $865-$875M, with slight growth excluding revenue from discontinued services. An Investor Day scheduled for December 11, 2024, will outline further strategic insights.

See full article at Match Group website

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Hinge's CEO Tackles Dating App Frustrations

NPR - Hinge is experiencing revenue growth, up 36% from last year, as it addresses user frustrations common with dating apps. Hinge's CEO, Justin McLeod, aims to improve user engagement and prevent "dead-end" conversations by limiting new matches until users respond to existing ones, a feature that has increased match-to-date conversions by ~20%. Hinge also plans to implement guidance nudges to help users progress from chatting to in-person dates.

by Darian Woods & Wailin Wong
See full article at WVIK

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Gen Z's New Dating Trend - Voice Notes Before First Dates

YAHOO LIFESTYLE - Gen Z and millennials are using voice notes before first dates to gauge personality and interest, a trend that surprises older generations. Hinge reports voice note conversations are 87% more likely to lead to a date, with users finding them helpful in assessing compatibility.

by Tahlia Pritchard
See full article at Yahoo Lifestyle

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Dating App Ad Spending in 2024 Set to Surpass 2023, With Bumble Leading the Charge

MEDIA POST - Dating app ad spending in 2024 is set to surpass 2023's total, with the top six apps (Bumble, eHarmony, Grindr, Hinge, Match.com, and Tinder) spending $147M by July, compared to $220M for all of 2023. Bumble has overtaken Tinder as the top advertiser, spending $44M, driven by a major rebranding effort. Despite a rise in consumer burnout with dating apps, including 78% reporting occasional fatigue, platforms are increasing their marketing to regain interest. Match Group plans to boost marketing for Hinge and Tinder in Q3, while Bumble will also increase its Q4 spending to attract users.

by Danielle Oster
See full article at Media Post

Hinge CEO Says He Bribed Students With KitKats

FORTUNE - Justin McLeod, founder of Hinge, started the dating app while at Harvard Business School. Initially struggling to attract users, he bribed students with KitKats and managed to attract only a few dozen sign-ups daily. To fund the app, McLeod collected checks of $5K to $10K from anyone willing to invest. He even deferred a job offer from McKinsey with a six-figure salary to focus on Hinge, eventually turning it into a success. By 2015, Hinge raised $26M before being acquired by Match Group. Today, McLeod remains Hinge's CEO, with the app earning $396M in 2023. He advises Gen Z entrepreneurs to balance idealism with practicality, encouraging them to take action rather than overthink their career paths.

by Orianna Rosa Royle
See full article at Fortune

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Hinge Introduces 'Your Turn Limits' to Boost Responsiveness and Quality Matches

HINGE - Hinge has launched "Your Turn Limits," a feature aimed at increasing responsiveness by requiring users with many unanswered messages to respond or end conversations before connecting with new matches. In testing, it boosted responsiveness by 20%, with 48% of users focusing more on quality over quantity of matches.

See full article at Hinge website

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Activists Push for Change at Match Group Following Post-Pandemic Slowdown and Valuation Drop

FINANCIAL TIMES - Starboard Value revealed in July that it had built a 6.6% position in Match Group. Elliott Investment Management, according to S&P Global Market Intelligence, amassed a stake of 4.5% earlier this year and got Match to add two new board members and sign an information-sharing pact. Anson Funds Management, a smaller fund, also has a stake. Activists have good reasons to push for change. Dating apps enjoyed a surge in popularity during Covid-19 but have struggled with a post-pandemic slowdown in growth. At its 2021 peak, Match was worth ~$50B. Its value now stands at just $9.3B. Bumble, which went public in 2021, is down 90 % since its IPO. Match still remains highly cash-generative, with $829M in free cash flow last year. Starboard thinks there is an upside if Match can turn around Tinder, cut costs and ramp up buybacks. The activist sees potential in Hinge. However, it also urged Match to consider selling itself if it cannot revitalize the business.

See full article at Financial Times

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Gen Z and Millennials Are Leaving Tinder for Hinge in Search of Serious Relationships

FORTUNE - Tinder is struggling as its user growth flatlines, while Hinge is gaining popularity, especially among Gen Z and millennials seeking serious relationships. Hinge's daily active users increased by 17% YOY, while Tinder saw a 10% decrease. Hinge's appeal comes from being perceived as a platform for meaningful connections, while Tinder struggles with its reputation as a hookup app. Match Group faces the challenge of revamping Tinder to attract more serious daters without overlapping too much with Hinge's audience. Tinder is offering new tools like AI wingmen, developed through a deal with OpenAI, to help Gen Z users with flirting and profile design. Hinge focuses on features like limiting active conversations to promote quality interactions and its "Designed to be deleted" strategy, encouraging serious relationships. Tinder also offers "Super Boosts" and more affordable paid features to attract users, though these have seen limited success.

by Sasha Rogelberg
See full article at Fortune

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Dating Apps Develop AI 'Wingmen' to Generate Better Chat-up Lines

FINANCIAL TIMES - Dating apps like Tinder, Hinge, Bumble, and Grindr are developing AI tools to assist users in improving their interactions. For example, Tinder is testing an AI feature to help users build profiles by selecting the best photos, and Hinge plans to launch a chatbot offering feedback on user-generated prompts. Grindr's "Grindr Wingman" generates conversation prompts based on users' profiles and chat history to reduce dating fatigue. Match Group added it is investing in recruiting AI talent as a "game-changing" priority for its flagship dating products. Engineers from Hyperconnect, the South Korean social media company it acquired in 2021, would be redirected to build AI tools at Tinder and Hinge.

See full article at Financial Times