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Match Group (MTCH), Garbo End User Background Check Partnership
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Match Group (MTCH - Free Report) announced that it is ending its partnership with Garbo, the nonprofit organization that provides background checks to users.
Garbo provides background checks that primarily focus on public records containing reports of violence and abuse, such as arrests, convictions, restraining orders, harassment and other aggressive crimes. The goal was to enhance user safety on dating apps.
Tinder to Lose Background-Checking Tool From Aug 31
In 2021, Match Group made a seven-figure investment in Garbo to integrate its background check services into MTCH's dating apps. Garbo's unique selling point was its focus on violence-related public records, excluding non-violent charges like drug possession and traffic violations.
Prior to the partnership, there were reports of harm to users of dating apps owned by Match Group. An investigative report by ProPublica and Columbia Journalism Investigations in December 2019 shed light on these issues, prompting Match Group to focus more on user safety.
In March 2022, Tinder (owned by Match Group) introduced background checks powered by Garbo through its in-app safety center. Users could access the Garbo website and input basic information about their match to initiate the background check process.
Tinder’s monthly active users have remained relatively steady since 2019 compared with Bumble (BMBL - Free Report) and Hinge where users have increased 87% and 140% in the same period, per Sensor Tower data.
In second-quarter 2023, direct revenues from Tinder were up 6% over the prior-year quarter to $474.7 million. The figure beat the Zacks Consensus Estimate by 2.88%. Revenue per payer rose 10% year over year to $15.12, driven by pricing optimizations and new weekly subscription packages.
Following Tinder's implementation, Garbo's background check services were extended to other Match Group dating apps like Match and Stir.
However, the company witnessed criticism regarding its reliance on a third-party partner for safety checks and concerns about the efficacy of background checks in predicting abuse as many abuse cases go unreported.
Garbo's decision to pivot its business was influenced by internal disagreements within Match Group on how the Garbo tools should work, difficulties in securing payment from online platforms and challenges related to public records.
Safety Measures Likely to Boost Active Users
Match Group has been focused on taking prompt corrective measures to aid user safety on its platforms including Tinder, which are likely to boost user growth in the near term.
The company rolled out an in-app campaign across a number of its big apps to warn users about potential romance scams.
MTCH’s companies will start promoting tips like keeping the conversation within the app for as long as possible (rather than switching to another messaging platform), setting up video dates, using photo verification, reporting interactions that peddle crypto or investment advice and staying vigilant as scams evolve.
Archer, the latest dating app launched by Match Group, represents a significant breakthrough in the industry after nearly a decade of limited innovation. With purposeful features designed to prioritize user safety and self-expression, Archer offers a unique mobile user experience.
The app enables deeper self-expression through photo-focused profiles, feed-style layouts, various viewing options, group messaging and the absence of predetermined labels. By combining elements of social media and dating, Archer fosters opportunities for community building within the app.
Zacks Rank & Stocks to Consider
Currently, Match Group carries a Zacks Rank #3 (Hold).
Image: Bigstock
Match Group (MTCH), Garbo End User Background Check Partnership
Match Group (MTCH - Free Report) announced that it is ending its partnership with Garbo, the nonprofit organization that provides background checks to users.
Garbo provides background checks that primarily focus on public records containing reports of violence and abuse, such as arrests, convictions, restraining orders, harassment and other aggressive crimes. The goal was to enhance user safety on dating apps.
Match Group Inc. Price and Consensus
Match Group Inc. price-consensus-chart | Match Group Inc. Quote
Tinder to Lose Background-Checking Tool From Aug 31
In 2021, Match Group made a seven-figure investment in Garbo to integrate its background check services into MTCH's dating apps. Garbo's unique selling point was its focus on violence-related public records, excluding non-violent charges like drug possession and traffic violations.
Prior to the partnership, there were reports of harm to users of dating apps owned by Match Group. An investigative report by ProPublica and Columbia Journalism Investigations in December 2019 shed light on these issues, prompting Match Group to focus more on user safety.
In March 2022, Tinder (owned by Match Group) introduced background checks powered by Garbo through its in-app safety center. Users could access the Garbo website and input basic information about their match to initiate the background check process.
Tinder’s monthly active users have remained relatively steady since 2019 compared with Bumble (BMBL - Free Report) and Hinge where users have increased 87% and 140% in the same period, per Sensor Tower data.
In second-quarter 2023, direct revenues from Tinder were up 6% over the prior-year quarter to $474.7 million. The figure beat the Zacks Consensus Estimate by 2.88%. Revenue per payer rose 10% year over year to $15.12, driven by pricing optimizations and new weekly subscription packages.
Following Tinder's implementation, Garbo's background check services were extended to other Match Group dating apps like Match and Stir.
However, the company witnessed criticism regarding its reliance on a third-party partner for safety checks and concerns about the efficacy of background checks in predicting abuse as many abuse cases go unreported.
Garbo's decision to pivot its business was influenced by internal disagreements within Match Group on how the Garbo tools should work, difficulties in securing payment from online platforms and challenges related to public records.
Safety Measures Likely to Boost Active Users
Match Group has been focused on taking prompt corrective measures to aid user safety on its platforms including Tinder, which are likely to boost user growth in the near term.
The company rolled out an in-app campaign across a number of its big apps to warn users about potential romance scams.
MTCH’s companies will start promoting tips like keeping the conversation within the app for as long as possible (rather than switching to another messaging platform), setting up video dates, using photo verification, reporting interactions that peddle crypto or investment advice and staying vigilant as scams evolve.
Archer, the latest dating app launched by Match Group, represents a significant breakthrough in the industry after nearly a decade of limited innovation. With purposeful features designed to prioritize user safety and self-expression, Archer offers a unique mobile user experience.
The app enables deeper self-expression through photo-focused profiles, feed-style layouts, various viewing options, group messaging and the absence of predetermined labels. By combining elements of social media and dating, Archer fosters opportunities for community building within the app.
Zacks Rank & Stocks to Consider
Currently, Match Group carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are JD.com (JD - Free Report) and Arcos Dorados (ARCO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
JD.com has lost 35% in the year-to-date period against the Zacks Internet Commerce industry’s return of 42.3%.
Arcos Dorados has gained 32.4% in the year-to-date period compared with the Zacks Internet - Commerce industry’s return of 42.3%.