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Match Group Inc.’s dating app Hinge is rolling out a new subscription tier that could cost as much as $60 a month, betting that the platform’s fast-growing segment of Gen-Z users will see it as a worthwhile investment.
The new premium level, which is being tested at $50-$60 a month, will be a significant increase over the current paid version of $35 a month and will be introduced globally in the first quarter. It will offer Hinge’s “highly motivated daters” enhanced features to boost their exposure. The people that subscribers “like” will be seen faster by other users and the offering will provide better recommendations of profiles Hinge thinks the user will be most interested in. The company confirmed details of the new offering on Tuesday.
Hinge has become a standout property in Match’s family of dozens of dating apps, which includes Tinder and OkCupid. The app expanded into new European markets like Italy, France and Germany and revenue has jumped 42% to an estimated $285 million in 2022, according to the company. Hinge reported revenue of $25 per paying user in the third quarter of last year, up from just over $20 in the prior year.
“We still have a lot more countries to go, and we will continue to roll out new markets and that should drive growth for Hinge over the next few years,” Match Chief Executive Officer Bernard Kim said on the company’s third-quarter earnings call.
Match is also testing user interest in a version of Tinder that would be priced at roughly $500 a month, allowing them to join a waitlist if the version becomes available, the company confirmed.
Match teased the new Hinge tier in the last earnings report, saying it would be targeted at its “most intentioned users,” who have a “higher propensity to pay.” Along with global expansion, the company expects the new paid tier to bring in at least $100 million of direct revenue in 2023.
Dallas, Texas-based Match struggled last year as a choppy economic environment and a strong dollar weighed on earnings overseas. Match shares slumped 69% in 2022, making it the second-worst performing company in the S&P 500, according to data compiled by Bloomberg. Match is scheduled to report fourth-quarter results on Jan. 31. The shares were little changed at $46.14 Tuesday morning in New York.
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