New updates have been reported about Tinder (PC:TINDR)
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tinder is turning to artificial intelligence to rejuvenate its platform amidst a persistent decline in paying subscribers, which has spanned nine consecutive quarters as of Q3 this year. Match Group, Tinder’s parent company, revealed during its recent earnings call that the dating app is piloting a new feature called Chemistry. This feature aims to better understand users through interactive questions and, with user consent, by accessing photos from their Camera Roll to glean insights into their interests and personalities. Currently being tested in New Zealand and Australia, Chemistry is set to become a central component of Tinder’s 2026 product strategy, according to Match Group CEO Spencer Rascoff.
The introduction of AI-driven features is not without financial implications. Match Group has projected a $14 million negative impact on Tinder’s direct revenue for Q4 due to ongoing product testing. Consequently, Match’s Q4 revenue guidance has been adjusted to between $865 million and $875 million, falling short of analyst expectations of $884.2 million. Despite these challenges, Tinder continues to innovate with additional features such as dating modes, double dates, and facial verification. However, the broader market presents hurdles, with some younger users opting for real-world interactions over online dating, and U.S. consumers potentially curtailing spending amid economic uncertainty. In Q3, Tinder’s revenue saw a 3% year-over-year decline, alongside a 7% drop in paying users. Overall, Match’s revenue was slightly below expectations at $914.2 million, with earnings per share at 62 cents, just shy of the anticipated 63 cents.