(Reuters) – 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% 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% 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% to $895 million, missing estimates of $900.9 million.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
