Shares of Match Group, the owner of the online dating service Tinder, fell 22.9% to $59.2 on the NASDAQ exchange as of 16:47 Moscow time. By 18:49 Moscow time, the decline in securities slowed down to 17.5%, and the price recovered to $63.2.
Shares sold off after Match Group announced that Renate Nyborg was stepping down as CEO of Tinder. She will leave the company after less than a year in the position. Nyborg will become the sixth Tinder CEO to leave the dating app division since it was founded in 2012.
Tinder is the largest division of the Match Group and the most popular dating app in the US. The Match Group also operates the dating apps Hinge and OkCupid.
Match Group forecasts third-quarter revenue to be between $790 million and $800 million. Analysts polled by Bloomberg had expected an average of $883.6 million in revenue.
In the second quarter, Match Group’s revenue increased 12% to $795 million, compared with an average analyst estimate of $804.1 million. The company posted a three-month net loss of $32.4 million and a loss per share of $0.11 compared to net income. $140.5 million or $0.46 per share a year ago. The number of paid users of services grew by 10% to 16.4 million, which is below the Bloomberg average estimate of 16.5 million people.
Match Group said it faced a number of challenges in the second quarter, including the impact of a stronger dollar, a drop in paid subscribers for some apps, and a slow recovery in demand for services in parts of markets.
The company also announced that it has decided not to implement several technologies, including the use of the Tinder Coins virtual currency in the Tinder app to provide benefits to paying users and incentivize spending. Tinder has also abandoned plans to develop its own online dating metaverse.
Match Shares Hit $160 As Company Listed In S&P 500 S&P500 , USA , Stocks