Match Group Tops Revenue Estimates, Eyes AI Transformation

Match Group reported first-quarter revenue of $864 million, exceeding analyst estimates of $854.9 million, as dating app Hinge continued to grow and early signs of a turnaround at Tinder emerged. The company is heavily investing in AI-powered features to improve match quality and reduce 'swipe fatigue.'

Match expects headcount growth to slow as it deepens use of AI tools. CFO Steven Bailey stated, 'We are making a big push around AI enablement... Our goal is to become an AI-native company.'

For the second quarter, Match forecast revenue between $850 and $860 million, slightly below expectations, due to Tinder product testing and disruption at its Azar app in Asia. Despite higher Azure-related costs, the company offset the impact through cost-cutting measures.

Tinder launched new features, including astrology and music, leading to a 1% rise in registrations after years of decline. Overall paying users fell 5% to 13.5 million, while Hinge payers increased 15% to 2 million.