Tinder parent Match to cut 6% jobs as activist investors seek changes

By Jaspreet Singh

(Reuters) - Match Group will let go about 6% of its staff as part of plans to discontinue live-streaming services on its dating apps, the Tinder parent said on Tuesday, as activist investors push for changes.

Shares jumped more than 8% in extended trading after the company also beat Wall Street estimates for second-quarter revenue as Tinder marked a smaller decline in paying users than in the prior quarter.

Dating app operators such as Match and smaller rival Bumble have remained under pressure from a post-pandemic slowdown in growth, with Match also facing delays in the launch of new features for key apps such as Tinder.

"While Tinder Y/Y payer growth remains challenged, the improved trends reported by management and that we observe in our data do suggest that user experience and brand perception improvements are contributing to sequential payer growth," M Science research analyst Chandler Willison said.

Paying Tinder users declined 8% to 9.6 million in the second quarter, compared with a 9% fall in the prior quarter.

The news comes about two weeks after activist investor Starboard Value built a 6.6% stake in Match, urging it to explore a sale if it is unable to revitalize its business.

Elliott Investment Management and Anson Funds Management have also been pushing for changes this year at Match.

Match expects third-quarter revenue to be between $895 million and $905 million, compared with estimates of $915.4 million.

"Despite some encouraging signs, there is still a lot of work to do to keep the business on track," Third Bridge analyst Jamie Lumley said.

Tinder downloads fell 12% globally, marking its fourth consecutive quarter of declining downloads, data from market intelligence firm Sensor Tower showed on Monday.

Match's second-quarter revenue grew 4% to $864 million, compared with analysts' average estimates of $856.4 million, according to LSEG data.

Total paying users fell 5% to 14.8 million, the seventh straight quarter of decline.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Mohammed Safi Shamsi, Devika Syamnath and Sriraj Kalluvila)

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