Match Group announced Tuesday that Spencer Rascoff, co-founder and former CEO of Zillow Group, has been appointed as its new CEO as the company looks to reverse slowing user engagement across its dating platforms, including Tinder. This move comes as Match Group faces challenges in attracting new users amid economic uncertainty and increased competition from rival Bumble, as well as social media platforms.
Shares of Match Group dropped by 9% in after-hours trading following the company’s forecast of annual revenue below Wall Street estimates. The forecast for 2025 revenue is expected to range between $3.38 billion and $3.50 billion, with the midpoint falling short of analysts’ expectations. The company also projected first-quarter revenue between $820 million and $830 million, lower than the expected $853.1 million.
The online dating app market has been seeing a decline in demand and user engagement, which Match Group attributes to factors such as economic instability and a lack of new features. In response, the company has introduced initiatives such as stronger verification systems and AI-driven dating features for Tinder. However, its total paying user base declined by 4% to 14.6 million in the quarter ending December 31, marking its ninth consecutive quarter of user losses.
Rascoff’s appointment signals Match Group’s focus on AI-driven business transformation, with expectations of substantial growth in 2026. Chandler Willison, an M Science research analyst, highlighted that Rascoff’s leadership could be integral to the company’s efforts to revitalize its portfolio and drive long-term growth. Rascoff joined Match’s board last year after discussions with activist investor Elliott Investment Management to improve performance. He succeeds Bernard Kim, who is stepping down as CEO.
Despite these efforts, Match’s forecast remains subdued, and analysts believe that AI initiatives will take time to contribute meaningfully to the company’s growth.