While many users are breaking up with Bumble, it’s nothing but sparks and swipes for Hinge and Tinder.
Hinge continues to be the hottest catch in the dating app world, while Tinder is giving itself a makeover to flirt with Gen Z, hoping to reignite the flame in an increasingly crowded dating pool.
Bumble Inc. reported an 8.7 percent decline in paying users during the second quarter, dropping from 4.1 million a year ago to 3.8 million. The downturn contributed to a nearly 8 percent fall in total revenue, down to $248.2 million from $268.6 million in the same period last year.
The company also recorded a $367 million net loss, driven largely by a $405 million non-cash impairment charge. Despite these setbacks, Bumble reported an increase in adjusted EBITDA margin (earnings before interest, taxes, depreciation and amortization), improving from 27.9 percent to 38.1 percent, totaling $94.6 million for the quarter.
Bumble shares dropped 17 percent after another decline in paying users raised doubts about its AI-driven turnaround and long-term growth.
In June, Bumble’s cost-cutting measures included a 30 percent workforce reduction, cutting around 240 positions.
Meanwhile, Hinge is proving to be the one worth swiping right on for Match Group, which also owns Tinder and Match.com. The app posted a 25 percent increase in revenue year-over-year, reaching $168 million, with paying users growing 18 percent to 1.7 million. Revenue per user also rose nearly 6 percent to $32, highlighting Hinge’s strong monetization potential.
Match Group’s total Q2 revenue reached $864 million, beating analyst expectations of $853.6 million. The company plans to invest $50 million into AI and international expansion across Hinge, Tinder, Azar, and The League by the end of the year.
As for Tinder, Match Group’s flagship product, it’s in the midst of reinvention.
Now under the new leadership of CEO Spencer Rascoff, the app is looking to rekindle its spark with Gen Z by redefining the vibe to think more chill flings than serious things.
For example, Tinder is testing a “double dating” feature that lets users pair up with friends to match with other duos.
“This generation of Gen Z, 18 to 28 – it’s not a hookup generation. They don’t drink as much alcohol, they don’t have as much sex,” Rascoff, who is also chief executive of Match Group, told investors in May, Forbes reports. “We need to adapt our products to accept that reality.”
