Due to the Tinder owner’s expectation that the Omicron COVID-19 variant will continue to hinder dates and meet-ups, Match Group Inc. reduced its full-year revenue forecast on Tuesday.
The pandemic’s effects have lingered, particularly in Japan, while the number of Omicron infections has risen sharply since early December.
Hinge and OkCupid owner OkCupid also missed revenue estimates for the fourth quarter, which was exacerbated by increased competition from rival Bumble.
Match expects total revenue to grow by 15% to 20% by 2022, compared to an earlier expectation of growth of 20% or more.
There was also an impact on our Q4 performance from our currency strength relative to other currencies,” the Dallas-based company has stated in a statement.
According to Refinitiv IBES, Match expects revenue in the first quarter to be between $790 million and $800 million, less than the $835.7 million expected.
Hinge’s international expansion is also a priority for the company, and the app is expected to be launched in select European countries in the second quarter.
Match, with its Hyperconnect brand in the Korean market, has been stepping up its focus on the “metaverse” in an attempt to draw in more digital users. In the metaverse, people can communicate with each other using augmented or virtual reality.
When compared to last year’s fourth-quarter results, Match Group shareholders lost $168.6 million (60 cents per share), or a loss of $149 million, or 50 cents per share.
Although revenue increased by 24% to $806.1 million, it fell short of forecasts for an increase to $818.1 million.###