Call it the Tinder factor: Aaron Smith, author of the report, told NPR that mobile apps' appeal lies in their simplicity and " game-ified way of engaging with other people.
Match Is the Sweetheart of Online Dating—But Can It Fend Off Facebook and Bumble? | Fortune
Online dating is a big market. Here in the U. Match, whose portfolio includes OkCupid, Tinder and Match. Investors are interested in the market's potential: Still, despite the increasing popularity of online dating, concerns remain over the industry's ability to generate a profit. The biggest issue is that, when the apps work and people find partners, they stop using the service.
As a result, dating apps must be adept at acquiring new customers. Unfortunately, as the Wall Street Journal points out , most dating apps don't experience the same meteoric rise that Grindr and Tinder have, and users generally don't recommend the latest apps to their friends.
Match's first quarterly earnings illustrate the potential hurdles within the online dating industry. Following the earnings report, Barclays downgraded the stock, and both JPMorgan and Merrill Lynch lowered their price targets. Keeping these challenges in mind as well as the industry's growth , let's take a look at what analysts expect to see from online dating companies when they next report earnings. Analysts provide estimates for various aspects of a company's operations, including its net income, earnings per share and revenue.
The consensus estimate, which is the average of the provided figures, is then used as a benchmark come earnings season. If a company surpasses estimates, that's a positive earnings surprise and can boost a stock. On the other hand, missing estimates is a negative earnings surprise and can tank a stock. Below is a list of online dating stocks and analyst estimates for their next quarterly earnings and revenue.
Operates an online dating platform in the People's Republic of China. Provides online personals services in the United States and internationally.
How online dating companies make money in India
Market cap at 2. Price and market capitalization data sourced from Zacks Investment Research. That said, the best may well be yet to come, say some founders, especially with the surge in language-first internet users expected over the next few years. The success of these apps will come from the number of authentic female profiles on the apps and how much time users spend on these apps. But things are changing for the better. Happn is focusing on Hyderabad, Pune, Jaipur and Lucknow beyond the big cities.
It is about getting you to spend time on the platform. This business also works on successful failures.
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So, imagine Raj speaks to Simran virtually but never meets her. He tries a few times but then moves on to another platform to meet a different woman. Companies lose revenue since repeat orders make money. This time, they know that there is a chance of success. They stay on the app, keep subscribing, keep swimming and thus, keep buying new and expensive packs. We noticed that if a girl, however, messages him back, the user tends to stay there for at least seven months. Until, of course, things go offline or most often to platforms like WhatsApp or Instagram.
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Single, needless to say, is preferred. For users, typical use cases are a mix of long-term, casual and platonic relationships, flings or even friendship beyond dating. Another subscription tier, TinderGold, lets users see who liked them, besides TinderPlus features. The monetisation puzzle goes all the way from subscription to micro-transactions. For dating companies, social ecommerce is fast becoming integral to their long-term strategy, a key learning from the famed Chinese app design playbook, which reads somewhat like this: That is, once the user is addicted or has signed up for a monthly fee, these dating apps offer add-on paid features like virtual gifting of flowers, likes, champagne bottles and so on.
Each of these transactions is charged. The end goal here is to keep the customer engaged. Some companies such as TrulyMadly and The Inner Circle have tried out offline events with mediumto-little success. Industry insiders suggest Tinder has less than 0. The main source of revenue outside of subscriptions could still come from ads, a potential that is locked, say advertisers, though it needs a strategy.
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Tinder has been known to show such ads here, through targeted Facebook and Google advertising. The popularity of Chinese live streaming products like BigoLive and others have come as a big fillip to these companies. This is also how some of these apps will try and lure more regional language users. The rise of live streaming has given us an opening to the regional audience and, in places, we believe the concept of coffee shop dates is yet to take off. However, while dating apps have credibly demonstrated an ability to earn money over time, the vagaries of the business are such that having a sustained future is not exactly a given.
There is undoubted, an intent to move the needle. Read more on Tinder. Yogurt makes Danone return to India market. Samsung shakes up top deck to guard India turf. Lenders in talks for Jet Airways' restructuring plan: US has put China on notice: The outlier among the loss-making airlines.