in its q4 earnings report, the company highlighted that ai-curated recommendations would offer more “personalized and engaging matches.” during the q4 earnings call, match group cfo gary swidler explained that the ai-powered feature would introduce a new way for users to connect beyond swiping.
however, he clarified that ai-based matching would serve as an enhancement rather than a replacement for swiping.
“we want a significant number of users to engage with this feature and give it a try… we also want to see improvements in match quality,” swidler stated. “our goal is to enhance the user experience, which in turn should help drive growth.”
additionally, tinder has been leveraging ai for other features, such as the ai photo finder, introduced last year, which assists users in selecting the best profile pictures for their dating profiles.
these ai-driven changes come at a challenging time for tinder and the broader dating app market.
over the years, younger singles have become disenchanted with online dating, feeling it has lost its spontaneity and become more of a chore. concerns over safety, privacy, and bad behavior from other users—combined with the realization that dating apps offer a limited pool of potential matches—have led to declining engagement across platforms.
during the earnings call, the company acknowledged tinder’s continued decline in global user growth.
in october, tinder’s monthly active users (maus) dropped 10% year-over-year. this decline slightly improved in the following months, reaching 9%, but in january, maus still fell by about 8%—a figure executives attempted to frame as a sign of stabilization.
tinder’s direct revenue also fell short of internal projections, bringing in $476 million—below the expected $480-$485 million range.
“i’d love to see us return to growth, but we need to take small steps first. we have to introduce these product innovations and monitor their impact on user trends,” swidler said, referring to the ai-powered features. additionally, the company plans to expand the availability of its “friends in common” feature.
as part of its efforts to turn things around, match group has appointed spencer rascoff, co-founder of zillow group, as its new ceo.
rascoff is optimistic about ai’s potential to revolutionize online dating. he likened this ai-driven shift to the transition from desktop to mobile, which reshaped the industry a decade ago.
“this ai boom presents an opportunity for match group to experience a major business inflection point, similar to how mobile overtook desktop in our category and others about ten years ago,” rascoff stated.
he pointed to platforms like tiktok, instagram, and snapchat, which have successfully leveraged ai to enhance engagement and retention, adding, “i see the same potential for us.”
despite match group’s confidence, the dating app market appears to be undergoing significant change.
beyond tinder’s struggles, the company fell short of analyst expectations in q4, reporting earnings of 82 cents per share—below the projected 84 cents. while revenue reached $860 million, exceeding estimates, it still marked a 0.7% year-over-year decline. looking ahead to q1 2025, the company forecasts revenue between $820 million and $830 million, reflecting a 3-5% decline due to tinder’s continued drop in active users.