(Reuters) – Match Group said on Wednesday it would report fourth-quarter revenue below its previous forecast due to a larger-than-anticipated impact from currency exchange rates amid sluggish user growth at its flagship dating app Tinder.
The company’s shares fell close to 5%, overshadowing its announcement of its first-ever quarterly dividend and a $1.5 billion share buyback.
Match now expects fourth-quarter revenue below its previous forecast of $865 million to $875 million, the midpoint of which was slightly above analysts’ average estimate of $869.6 million, according to data compiled by LSEG.
The Dallas, Texas-based company has seen a slowdown in demand since the pandemic-era peak, as economic uncertainty and a lack of new features prompt users to reduce spending on its dating apps, which include Hinge, OkCupid, and Plenty of Fish.
Match said that it now expects the impact from forex rates to be roughly $15 million larger than expected earlier, with roughly two-thirds being attributable to Tinder, its biggest unit by direct revenue.
Revenue from Europe, Asia Pacific and other regions barring the Americas made up more than 40% of Match’s revenue in the quarter ended June.
Tinder will also not meet its target for direct revenue of $480 to $485 million from the app in the fourth quarter.
Declines in new user additions for the app on Apple iOS have stabilized at lower levels, but have not recovered to early September levels, Match said.
The company still expects to achieve an adjusted operating income margin of 36% for 2024.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Tasim Zahid)
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