Tinder-Parent Match Group Unveils Workforce Reduction, Turnaround Plan – Stock Falls Despite Q1 Beat
Synopsis
CEO Spencer Rascoff said the headcount reduction, along with other cost-cutting measures, will generate more than $100 million in annualized savings, including $45 million in 2025.
Match Group shares fell more than 6% on Thursday afternoon despite the company beating estimates on revenue and profit. Investors appeared focused on a planned 13% workforce reduction and signs of weakening user engagement across core platforms.
For the first quarter (Q1), the online dating company reported revenue of $831 million, down 3% from a year earlier but ahead of the $827.5 million consensus estimate, according to Koyfin.
Earnings per share came in at $0.44, topping expectations of $0.38.
Match, the parent of Tinder, Hinge, and OkCupid, said the layoffs are part of a broader restructuring to control costs. The move marks the first major step by CEO Spencer Rascoff, who took over in February, to reinvigorate the business.
Paying users across all platforms fell to 14.2 million in the quarter, compared to 14.9 million a year ago. The decline was especially pronounced at Tinder, where monthly active users dropped 9% year-on-year (YoY). Tinder’s direct revenue declined 7%, while revenue per payer (RPP) fell 1% to $16.38.
Hinge continued to outperform, with direct revenue rising 23%. Payers rose 19% to 1.7 million, and RPP increased 3% to $29.90, supported by subscription price increases in several markets. Management said Hinge maintained the top ranking in 10 countries and ranked second overall across Western Europe.
Match expects second-quarter (Q2) revenue between $850 million and $860 million, slightly above the analyst average estimate of $846.7 million.
Rascoff emphasized that the company is still in the early stages of a strategic overhaul, focusing on innovation and user safety.
He said the headcount reduction and other cost-cutting measures will position the company to “achieve more than $100 million in annualized savings, including approximately $45 milliion of in year savings in 2025.”
Match’s stock is down 15% year-to-date and has fallen more than 3% over the past 12 months.
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