Investors are ghosting Match Group (NASDAQ:MTCH) Inc after the company’s first-quarter forecast included a revenue projection lower than expectations.
The operator of Tinder, Hinge, OKCupid and several others predicted first-quarter revenue between $790 million and $800 million, below Street estimates for $816 million. Fourth-quarter revenue fell 2% to $786 million in the fourth quarter ended December 31, also missing expectations of $787.3 million.
The fourth quarter marked Match Group (NASDAQ:MTCH)’s first-ever quarterly decline, and Tinder is taking the most heat. The company called poor product execution at Tinder a “significant” reason for the dip, along with product delays at Hinge and generally tough economic conditions.
Shares of Match Group were down 5.4% to $51.20. Investors, as it turns out, also don't want no scrubs.
In response, Tinder will launch its first global marketing campaign this quarter. Previously, the app had relied almost entirely on word-of-mouth advertising. Analysts have argued that a lack of advertising has hurt Tinder amid competition from companies like Bumble Inc (NASDAQ:BMBL) and a potential recession, according to reports.
Additionally, Match plans to cut its global workforce by 8%, chief financial officer Gary Swidler said on a call Wednesday.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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