![]() Dating app users told the New York Times last month how they feel “burned out” from the pressure to swipe, match, and chat daily with an endless cycle of potential matches that often fails to turn into more. ![]() The method of dating app decision-making hit the scene with Tinder in September 2012 and quickly became ubiquitous in tech and society at large.īut what once was exciting has become routine. This month marks the 10-year anniversary of the swipe. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.– Swipe on. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. I focus on what I know and care about, which is Tech, Green Tech, entertainment and some consumer goods and applications. If there is anything in this article that you agree with, would like me to expand on or disagree with I would really appreciate you took the time to leave a comment below. I have no business relationship with any company whose stock is mentioned in this article. I am not receiving compensation for it (other than from Seeking Alpha). I wrote this article myself, and it expresses my own opinions. Considering PMC growth and ARPPU flat from Q2 (which is a quite pessimistic assumption) and leaving aside taxes and that Q3 will only benefit 2 months from this revenue earnings projection would be as follows.Īnalyst’s Disclosure: I am/we are long MTCH. I see no reason why this feature would increase cost of revenue or expenses so while the percentage of revenue is still small, earnings wise it will be much higher. Alternatively, considering that Tinder reports a stat of 1.6 billion swipes per day, depending on the rate of swipes per ad quarterly revenue would be as follows. On the low end $2.4 million per quarter, on the high end it is 3 times current indirect revenue. ![]() Depending on the average days the users open Tinder, the ads density within profiles and number of profiles seen per use is how profitable this feature will be. The low end, considers the use of the app only during weekends and in short periods of time (20-30 profiles seen per use), on the high end consistent app usage during the month with around 100 profiles per use. The Chart above considers 50 million users and a standard CPM of $2. Again, I believe a small portion of users will ponder which option to choose but either way Tinder will not lose revenue from the users that decide to leave (considering the percentage will be small) and may increase the percentage of users using premium subscriptions or at least encourage paying users to keep their subscription. The users that find the feature too annoying to ignore will have to decide between stop using Tinder, which I find very unlikely, or purchase the premium subscription. The ads are well integrated and result of little annoyance in general, I believe the majority of users will not modify their Tinder habits as a result of this feature. This feature will allow Tinder to monetize from non-paying users which represent the majority of the Tinder base. The ads are targeted for each user thanks to an agreement with Facebook and appear every 20 or 30 swipes or so. The ads appear among the deck of possible matches that the users swipe right or left. Recently Tinder introduced a new feature that places ads with a similar format as regular user profiles. ![]() Tinder is increasing its geographic presence and widening its age gap use among older generations. Which are good numbers and show consistent growth however, the reason why Tinder has spread over like wild fire is that is free of charge. ARPPU of $0.53 consequently gave revenue of $309,572 MUSD. Match group Q2 Earnings report showed a record high 2 Million PMC on Tinder and 6 million in total. The company offers its dating products through its Websites and applications in 42 languages approximately in 190 countries. It operates a portfolio of approximately 45 brands, including Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. (NASDAQ: NASDAQ: MTCH) provides dating products.
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