Match Group said on Tuesday it has appointed Spencer Rascoff as its new chief executive officer (CEO), at a time the company looks to attract more users to its dating apps, including its flagship platform Tinder.
Shares of the company dropped 9% in extended trading, after it forecast annual revenue below Wall Street estimates.
Online dating apps have been seeing a slowdown in demand and user engagement over the past few years as economic uncertainty and a lack of new features prompted people to cut back on spending.
Match Group, which offers other dating app services such as Hinge, OkCupid and Plenty of Fish, also faces competition from rival Bumble’s eponymous dating app and social media companies.
The company has been making aggressive marketing efforts targeting younger users. It has introduced new features, including stronger verification and artificial intelligence-based dating to Tinder.
Rascoff’s appointment “likely reflects the company’s strategic goals regarding AI-driven business transformation across Match Group’s app portfolio,” M Science research analyst Chandler Willison said.
The Zillow Group co-founder and former CEO, Spencer Rascoff, was appointed to Match’s board last year after talks with activist investor Elliott Investment Management to improve its performance.
Rascoff’s appointment is effective immediately and he will succeed Bernard Kim, who is stepping down as CEO and a member of the board.
Match expects its 2025 revenue to be between $3.38 billion and $3.50 billion, the midpoint of which is below analysts’ average estimate of $3.50 billion, according to data compiled by LSEG.
It sees first-quarter revenue between $820 million and $830 million, also below estimates of $853.1 million.
The company’s forecast is well below expectations as it sees its AI-driven growth opportunities to only drive substantial growth in 2026, Willison said.
The outlook “reflects the company’s retooling efforts involving a management change and AI-driven initiatives that will be necessary to drive meaningful growth in 2026 and beyond,” according to Willison.
Match’s total paying users fell 4% to 14.6 million in the three months ended Dec. 31, marking a ninth straight quarter of decline.
Its quarterly revenue fell 1% to $860.2 million but beat estimates of $858.7 million.
Content Courtesy – Reuters
