Tinder parent Match to cut 6 Percent of staff after activist push for change

Tinder parent Match to cut 6 Percent of staff after activist push for change

Reuters | July 31, 2024 | 06:26 AM IST | Tech | Follow on Google News

Tinder parent Match to cut 6 Percent of staff after activist push for change

Tinder parent Match to cut 6 Percent of staff after activist push for change

(Reuters) -Match Group will cut about 6% of staff as it plans to discontinue live-streaming services on its dating apps, the company said on Tuesday, after three activist investors pushed for changes at the Tinder parent.

The dating app operator also beat Wall Street estimates for second-quarter revenue as Tinder marked a smaller decline in paying users than in the previous quarter, sending its shares up more than 8% in extended trading.

The news comes about two weeks after activist investor Starboard Value built a 6.6% stake in Match, urging it to explore a sale if it is unable to revitalize its business.

Starboard was the third investor after Elliott Investment Management and Anson Funds Management to push for changes this year at Match, which has struggled with a post-pandemic slowdown in growth.

The Dallas, Texas-based company has shown signs of stabilizing Tinder trends and robust growth at Hinge, backed by marketing efforts, new subscriptions and app updates to capture more young users.

Match also said it was testing several key product changes for Tinder, including the addition of more inclusive gender identities.

The company’s second-quarter revenue grew 4% to $864 million, compared with analysts’ average estimates of $856.4 million, according to LSEG data.

Tinder paying users declined 8% to 9.6 million in the second quarter, compared with a 9% decline reported in the previous quarter.

Match expects revenue of between $895 million and $905 million for the third quarter, the mid-point of which is below estimates of $915.4 million.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi and Devika Syamnath)

Reuters