Home / Uncategorized / Tinder now has 4.1M paying users, expects $800M in revenue this year

Tinder now has 4.1M paying users, expects $800M in revenue this year

Facebook Dating is no challenger to Tinder-owner Match Group (NASDAQ: MTCH), which posted third-quarter earnings per share of 44 cents on Tuesday.

The company, which owns several brands of internet dating services, including Tinder, Hinge, Ok Cupid and PlentyOfFish, surpassed analyst’s forecasted revenue of $437 million, reporting Q3 revenue of $444 million, a 29 percent increase year-over-year.

Match says it expects to bring in a total of $1.72 billion in annual revenue.

Despite positive earnings, the company’s 4Q outlook failed to satisfy Wall Street. Match said it expects between $440 and $450 million in revenue in Q4, falling short of the $454.5 million analyst estimate. Shares of Match sank 10 percent in after-hours trading as a result.

Year-to-date, Match’s stock is up roughly 60 percent.

Tinder, the location-based mobile dating application, continues to be Match’s growth engine. Match’s total number of paid subscribers came in at 8.1 million, up from 7.7 million in Q2 and a 23 percent increase YoY. Much of that growth comes from Tinder Gold, Tinder’s premium subscription tier that lets users see who’s already liked them without doing any swiping. Overall Tinder’s paying user base is up to 4.1 million from 3.8 million the previous quarter.

Match says Tinder’s direct revenue is up 100 percent YoY; it’s expected to bring in $800 million in revenue in 2018. Hinge, another app-based dating service acquired by Match in June, has seen a 5x increase in downloads since Match first invested.

Tinder Gold, which lets you see who has liked you, launches today in U.S.

Match also announced that it would, for the first time, issue a special cash dividend of $2.00 per share on Match Group common stock and Class B common stock, to be paid out on Dec. 19.

Match continues to be on the prowl for strategic M&A opportunities, said its chief executive officer Mandy Ginsberg in a statement

“[We] have the financial flexibility to acquire companies when we find innovative products with long-term potential,” she said.

The company has reportedly attempted to acquire Tinder-competitor Bumble on more than one occasion, though the nasty legal battle playing out between the dating powerhouses makes that combination unlikely. Most recently, Bumble said it was dropping its $400 million lawsuit against Match, which had claimed Match fraudulently obtained trade secrets during acquisition talks. Though Bumble may refile the suit at the state level.

Dallas-based Match is owned by IAC, which will itself report earnings tomorrow after the closing bell.

Bumble drops its $400M lawsuit against Match, but this battle isn’t over

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Facebook Messenger is building a ‘Watch Videos Together’ feature

Netflix and chill from afar? Facebook Messenger is now internally testing simultaneous co-viewing of videos. That means you and your favorite people could watch a synchronized video over group chat on your respective devices while discussing or joking about it. This “Watch Videos Together” feature could make you spend more time on Facebook Messenger while creating shared experiences that are more meaningful and positive for well-being than passively zombie-viewing videos solo. This new approach to Facebook’s Watch Party feature might feel more natural as part of messaging than through a feed, Groups or Events post. The feature was first spotted in Messenger’s codebase by Ananay Arora, the founder of deadline management app Timebound as well as a mobile investigator in the style of frequent TechCrunch tipster Jane Manchun Wong. The code he discovered describes Messenger allowing you to “tap to watch together now” and “chat about the same videos at the same time” with chat thread members receiving a notification that a co-viewing is starting. “Everyone in this chat can control the video and see who’s watching,” the code explains. A Facebook spokesperson confirmed to TechCrunch that this is an “internal test” and that it doesn’t have any more to share right now. But other features originally discovered in Messenger’s code, like contact syncing with Instagram, have eventually received official launches. Watch Party exists on Facebook, but could be more popular as a chat feature A fascinating question this co-viewing feature brings up is where users will find videos to watch. It might just let you punch in a URL from Facebook or share a video from there to Messenger. The app could put a new video browsing option into the message composer or Discover tab. Or, if it really wanted to get serious about chat-based co-viewing, Facebook could allow the feature to work with video partners, ideally YouTube. Co-viewing of videos could also introduce a new revenue opportunity for Messenger. It might suggest sponsored videos, such as recent movie trailers. Or it could simply serve video ads between a queue of videos lined up for co-viewing. Facebook has recently been putting more pressure on its subsidiaries like Messenger and Instagram to monetize as News Feed ad revenue growth slows due to plateauing user growth and limited News Feed ad space. Other apps like YouTube’s Uptime (since shut down) and Facebook’s first president Sean Parker’s Airtime (never took off) have tried and failed to make co-watching a popular habit. The problem is that coordinating these synced-up experiences with friends can be troublesome. By baking simultaneous video viewing directing into Messenger, Facebook could make it as seamless as sharing a link.

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