Match Group missed Wall Street’s quarterly income forecasts Tuesday, as steady subscriber growth on its popular dating app, Tinder, dropped to its lowest in at least a year, shares diving 10% after the bell.
The online dating service provider additionally forecasts first-quarter income in the range of $545 million to $555 million, below analysts’ average prediction of $562.2 million, in accordance with IBES data from Refinitiv.
Tinder contributed around 200,000 average subscribers in the fourth quarter, taking its total average subscriber count to approximately 5.9 million.
The app enjoys nearly 45% market share, based on research company Apptopia.
The owner of OkCupid and PlentyOfFish faces severe competition from a host of competitors along with Bumble and Facebook’s dating service, amid an ongoing suit from the U.S. Federal Trade Commission and a pending spin-off from parent InterActiveCorp (IAC).
In Q3, 437,000 users signed up on Tinder, taking its average subscriber count to 5.7 million.
Match has been investing heavily to market its money-spinner, Tinder, in developing markets along with India and Latin America, in addition to promoting its other services together with Hinge, as competition in the online dating space intensifies.
Match’s total working expenses soared 19.8% to $366.9 million in the fourth quarter.
Total income climbed 19.6% to $547.2 million in the quarter, missing analysts’ average prediction of $552.9 million.
Match Group’s net earnings attributable to shareholders surged to $132.2 million, i.e., 45 cents a share, for Q4 ended December 31, from $115.5 million, i.e.,39 cents a share, a year ago.