Match Group Reports $864M Q1 Revenue, Guides for Q2 Decline, Slows Hiring to Fund AI
Match Group posted first-quarter revenue of $864 million, up 4% year over year. The company plans to slow hiring to cover costs of AI tools for staff while providing second-quarter guidance of $850 million to $860 million. Tinder monthly active users fell 7% in March, better than the prior year's 10% decline.
TechcrunchMatch Group reported revenue of $864 million in the first quarter, an increase of 4% from the same period a year earlier. The company guided for second-quarter revenue between $850 million and $860 million, which would represent a decline of 2% to flat compared with the prior year.
Tinder, the company's flagship app, saw monthly active users decline 7% in March, an improvement from the 10% drop recorded in March of the prior year.
Tinder registrations grew 1% in the most recent quarter, marking the first increase since 2024. Match Group is slowing hiring for the rest of the year to fund increased use of AI tools for employees. Chief Financial Officer Steven Bailey said on the earnings call that the company is providing all employees access to cutting-edge AI tools along with training.
“We’re making a big push around AI enablement. We’re giving every employee in the company access to all the cutting-edge tools. We’re giving them the training they need to succeed. We’re setting expectations.
We really want to become an AI-native company,” Bailey said. Bailey stated that the company is paying for the AI tools by slowing its hiring plans for the rest of the year. He said the slowed hiring and lower headcount would make the increased AI software expenses cost-neutral.
Bailey added that Match Group expects increased productivity from AI use to increase revenue growth.
