UK: Match Group, Tinder's parent company, exceeded revenue expectations last quarter, as more users were looking for paid matches for paid subscriptions on the popular dating app.
Their results were an outlier in a quarter of the poor performance of some of the biggest US technology companies. Match Group, which owns several dating apps like Hinge and OKCupid, saw its stock rise 16% on Tuesday.
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The result is good news for Tinder, which has been rocked by executive changes this year. The company's CEO, Renate Nyborg, stepped down in August after less than a year on the job. Inflation pressures and concerns about cost of living have also put a damper on app spending.
Despite the odds, Match Group's revenue was $810 million in the three months to September 30, according to Refinitiv data, which exceeded the average analyst estimate of $793 million.
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However, the company expects Tinder's revenue to remain flat in the coming quarter.
Chief executive Bernard Kim and finance chief Gary Swidler warned that a weak global economy was affecting Match brands that cater to low-income customers, as well as discretionary spending on their apps.
The number of paid Tinder users grew by 7%, and revenue increased by 6%, thanks to the return of a feature that allows people to use the app on their desktop computers. Tinder's paid subscription service has three tiers that give users unlimited likes and at some tiers the ability to see who has "liked" them.
Last week, the values of Meta, Alphabet and Microsoft were wiped out as fears of a global recession hit the world's biggest technology companies. At their lowest point, the five largest technology stocks lost a total of $950 billion.
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Match intends to combat the impending slowdown by reducing headcount-related expenses and marketing spend. The company also said that it is looking for a new Tinder CEO, a position that is still open.