November 2 (Reuters) — Match Group (MTCH.O), the parent company of Tinder, stated that Tinder’s daily active users in the United States returned to year-over-year growth in October. The company’s Chief Financial Officer told Reuters on Monday that this marks a significant milestone in the dating app’s efforts to turn its performance around.
CFO Steve Bailey noted that the increase in daily active users was driven primarily by improvements to the platform’s algorithms; the use of artificial intelligence has helped analyze unstructured data to identify better-matched users. He did not, however, disclose specific monthly figures.
In September, Tinder’s global daily active user count returned to year-over-year growth—the first such increase in three and a half years.
As younger, Gen Z users grow increasingly frustrated with endless swiping—a trend that has led to a decline in user engagement—dating apps are turning toward artificial intelligence.
Last month, competitor Bumble entered into a $1.3 billion deal with Ithaca Holdings, taking the company private after years of struggling to reignite growth.
Match Group reported that Tinder’s global daily active users fell by 1% in the third quarter, an improvement from the 10% decline seen in the same period last year.
The company expects to spend approximately $10 million on AI tools by 2026. Bailey stated that Match Group is slowing down its hiring to offset rising AI-related costs, though there will be no layoffs.
According to data compiled by the London Stock Exchange Group (LSEG), the company expects its fourth-quarter revenue to be between $865 million and $875 million, compared to analysts’ expectations of $871.4 million.