Dating services provider Match Group Inc forecast first-quarter revenue and profit below Wall Street estimates on Wednesday, hurt by higher marketing expenses at its Tinder, Hinge and other apps.
Online dating market is expected to grow to $12 billion by 2020, according to Nomura analysts, and Match has been investing heavily to grab a bigger slice of the pie.
The company has boosted its marketing spend on its money-spinner Tinder in emerging markets, including India and Latin America, while ramping up its other services, PlentyOfFish and Hinge.
Match faces stiff competition from a host of rivals including Bumble, which recently launched its app in India, a market with huge potential for dating-related services.
Match’s total operating expenses rose about 22 percent to $306.34 million in the fourth quarter.