Tinder Payer Growth
Q: What gives confidence Tinder's net adds will grow in Q3?
A: Management expects sequential payer improvement in Q3 due to product initiatives aimed at improving MAU and conversion, despite current declines in payers and MAU. They believe that smoothing out recent noise in payer counts and leveraging new weekly subscription packages will lead to growth. "

Revenue Outlook
Q: What's changed driving lower revenue growth expectations?
A: Since February, increased ALC weakness due to macroeconomic factors and underperformance of monetization initiatives have led to revenue growth expectations dropping to low to mid-single digits from prior 6%–8%. "

Maintaining Margins
Q: How will you maintain 36% margins despite softer revenue?
A: The company plans to maintain 36% margins by adjusting corporate overhead, marketing spend, and potentially innovation investments if needed, though they prefer to improve trends rather than cut costs. "

Hinge Margin Potential
Q: Will Hinge's margins improve as it scales to $1B revenue?
A: Hinge's margins are expected to be in the high 20% range this year, affected by investments in marketing and people. As Hinge scales toward $1 billion in revenue, margins should improve and may approach company levels, though likely remaining below Tinder's margins. "

AI Initiatives
Q: What's the impact of AI, like the photo selector, on apps?
A: The AI Photo Selector, launching this summer, helps users create better profiles by selecting photos from their library, enhancing user experience and potentially increasing matches and conversations. Management plans to expand AI throughout the dating journey. "

Marketing Spend
Q: Why not invest more in marketing to boost Tinder growth?
A: Management believes that improving the product experience is more critical for growth than increasing marketing spend. Marketing focuses on brand narrative rather than driving short-term payer growth, and they don't see a compelling reason to increase it solely to hit quarterly numbers. "

Product Innovation
Q: How are you reigniting user growth at Tinder?
A: By implementing big and bold product changes inspired by internal case studies (e.g., Hinge's redesign), focusing on genuine product innovation to appeal to women and Gen Z, rather than small tweaks, to drive significant impacts on user experience and growth. " , "

Emerging Brands Growth
Q: What's driving growth in Emerging brands like Archer?
A: Archer is seeing strong user growth and plans to monetize as the user base grows. The company is offsetting declines in Evergreen brands by stacking revenue from multiple demographically focused apps in the Emerging brands portfolio. "

User Experience for Women
Q: What are the bold product changes for women and Gen Z?
A: Initiatives include requiring face photos to increase authenticity and improve matches, despite potential MAU impact. Aggressive removal of bad actors and updating community guidelines aim to enhance the experience for women and Gen Z users. "

ALC Cannibalization Risk
Q: Is there a risk of ALC products cannibalizing subscriptions?
A: There is potential risk, but management carefully tests and manages each new a la carte feature to ensure overall revenue is accretive. A balance is maintained to mitigate cannibalization while introducing more affordable ALC offerings. "