It seems like Hinge is stealing the spotlight from Tinder as Match Group, the parent company of both dating apps, released its first-quarter earnings report. The report reveals a continued decline in Tinder’s paying user base for the sixth consecutive quarter, while Hinge is experiencing a surge in members willing to pay for the app. In Q1 2024, Tinder had 10 million paying users, marking a 9% decrease from the previous year, whereas Hinge boasts 1.4 million paying users, reflecting a 31% increase year over year.
The decline in Tinder’s popularity is not surprising given the evolving dating app culture, with younger users showing a preference for meaningful, long-term relationships over casual encounters, which has been Tinder’s forte. In contrast, Hinge has gained traction among users seeking more substantial connections.
During a conference call with investors, Match Group CEO Bernard Kim highlighted Hinge’s impressive revenue growth, projecting it to become a “$1 billion revenue business.” Hinge’s direct revenue in Q1 soared to $124 million, representing a remarkable 50% increase from the previous year. In 2023 alone, Hinge raked in $396 million.
However, Tinder is grappling with challenges in retaining paying users, particularly in convincing them of the value of its à la carte (ALC) features or in-app purchases like Super Likes and Boosts. ALC revenue, which contributes about 20% of Tinder’s direct revenue, witnessed a 13% decline in Q1 2024 compared to the record-high purchases seen in 2018.
Match Group CFO Gary Swidler acknowledged the prolonged decline in ALC revenue, attributing it to various factors, including user declines and reduced average purchase volumes, partly due to weaker consumer spending among its younger user base. Swidler anticipates a similar decline in Tinder payers in the second quarter but expects signs of improvement by Q3.
The adoption of à la carte offerings aimed to cater to price-conscious Gen Z users, providing them with affordable options to stand out and attract potential matches. Match Group plans to continue introducing new à la carte features on Tinder at affordable price points in future quarters to address these challenges.
