(Reuters) -Match Group Inc on Tuesday forecast first-quarter revenue below estimates and recorded its first quarterly decline ever, as a tough economy and rising competition hit paying users on the Tinder owner’s dating apps.
The company will also book charges of about $6 million in 2023, it said, following reductions to marketing spend, headcount and real estate expenses as part of a cost-cutting drive.
Shares of the Dallas, Texas-based company fell nearly 11% in trading after the bell.
Match, which has largely relied on word-of-mouth advertising so far, said Tinder will be launching its first global marketing campaign in the current quarter to improve brand perception.
Analysts have expressed concerns that Match’s minimal advertising efforts for Tinder would suppress business as competition intensifies from the likes of Bumble Inc while growing fears of a recession keep lower-income users from its apps.
The company forecast first-quarter revenue between $790 million and $800 million, lower than analysts’ estimates of $817.3 million, according to Refinitiv data.
Revenue fell 2% to $786 million in the fourth quarter ended Dec.
31, also missing expectations of $787.3 million.
Payers fell 1% during the quarter to 16.1 million.
(Reporting by Shreyaa Narayanan and Vansh Agarwal; Editing by Devika Syamnath)
