Match Group Q2 Summary: Positive Earnings
Match Group has released its Letter to Shareholders for Q2 2023, outlining positive revenue growth. Pricing improvements and weekly subscription packages were highlighted as significant factors in this renewed optimism.
The company exceeded its Q2 expectations, recording a total quarterly revenue of $830 million, a 4% improvement year-over-year.
With regards to Tinder, the platform introduced new pricing optimisations in the USA, which led to revenue growth over Q2. The dating app did see paying users decline by 4% year-over-year due to the changes, however they will benefit the company in the long run, the report shared.
Another big change to Tinder is the introduction and expansion of weekly subscription packages. These shorter duration packages have increased conversion and renewal rates, especially among female users and younger female users.
Looking ahead, the platform wants to continue the good work of its ‘It Starts with a Swipe’ campaign, which helped grow user signups and engagement amongst women. Furthermore, it is also looking to target Gen Z moving forward, with greater focus on prompts, quizzes and conversation starters.
Dating app Hinge saw direct revenue grow by 35% year-over-year, with a 24% increase in paying users year-over-year. The platform has continued to grow in popularity around the world, with Hinge among the top 3 most downloaded dating apps in 14 markets globally.
The launch of weekly subscription packages looks to further develop Hinge’s monetisation strategy, with Match Group predicting 40% year-over-year direct revenue growth in 2023 for the platform.
Match Group saw direct revenue decline 4% and 5% for Match Group Asia and Evergreen & Emerging respectively. Pairs and Hakuna in Asia are undergoing a weak period, the company shared.
After internal reorganisation earlier this year, Match Group created the Evergreen & Emerging grouping of platforms. A focus on marketing within this collection of apps will help support them as Match Group looks to invest in other areas of the overall business, it shared.
