Match's weak quarterly revenue forecast clouds improving trends at Tinder

Match reported second-quarter revenue of $853 million, down 1%, missing analysts' estimates of $856.8 million.

Paying users fell 6% to 13.3 million, though revenue per payer rose 6% to $21.13.

Dating apps are betting on artificial intelligence-powered features to adapt to changing user preferences and improve matchmaking.

Tinder is using AI to speed up product development and rolling out social features aimed at helping younger users make real-world connections. Its Events feature, piloted in Los Angeles in March, has hosted more than 60 gatherings.

The events product currently focuses on driving user growth rather than direct revenue, but is expected to become a revenue driver by 2027 and beyond, Bailey said.

Tinder's daily active user decline narrowed to 4% in the second quarter, the smallest percentage decline in 10 quarters. Hinge's global monthly active users rose 13%, driven by strong growth in its expansion markets.

Match Group forecast third-quarter revenue below Wall Street estimates on Tuesday, overshadowing signs of improvement in its struggling Tinder app and continued growth at its Hinge dating app.