Match Group said it is slowing hiring plans for the rest of the year as the company increases spending on artificial intelligence tools for employees, according to comments made during its first-quarter earnings call.
The remarks came as the dating app company reported signs of stabilization at Tinder after several quarters of declining performance. Tinder’s revenue returned to slight growth during the quarter, while user declines moderated compared with the previous year.
During the earnings call, Match Group chief financial officer Steven Bailey said the company is expanding internal use of AI software and training programs across the organization.
“We’re making a big push around AI enablement,” Bailey told analysts. “We’re giving every employee in the company access to all the cutting-edge tools. We’re giving them the training they need to succeed. We’re setting expectations. We really want to become an AI-native company.”
Bailey said the growing cost of AI software contributed to the company’s decision to reduce the pace of hiring.
“We think it’s a huge opportunity. But these tools cost a lot of money, as I’m sure you know, and so the way we’re helping to pay for that is by slowing our hiring plans for the rest of the year,” he said.
Company Expects AI Costs To Remain Neutral
Match Group told investors the financial impact is expected to remain cost-neutral because reduced hiring and lower headcount growth should offset higher software spending.
The company also said it expects productivity gains from employee use of AI tools to support future revenue growth.
The comments arrive during a period of ongoing pressure for Match Group and its flagship dating platform, Tinder.
Monthly active users on Tinder declined 7% in March compared with a 10% decline during the same period a year earlier. Tinder registrations also increased for the first time since 2024, though growth was limited to 1%, according to Bloomberg.
Match Group reported first-quarter revenue of $864 million, representing 4% year-over-year growth. The company’s guidance for the following quarter projected revenue between $850 million and $860 million, ranging from a 2% decline to flat growth compared with the prior year.
Dating Habits Continue To Shift
The company’s challenges come alongside changing behavior among younger users, particularly Gen Z consumers, who increasingly appear less interested in traditional dating apps.
Many younger users are instead turning toward in-person social activities such as running groups, book clubs, and hobby-based communities as ways to meet new people.
The trend has coincided with renewed interest in older consumer technology products including digital cameras, flip phones, boomboxes, and landlines, reflecting broader interest in reducing constant online engagement.
Match Group chief executive Spencer Rascoff said the company is adjusting its product plans to reflect those behavioral changes, including increasing the number of in-person events organized through its services.
“Gen Z desperately wants to connect,” Rascoff said during the earnings call. “They know they want to meet new people. They just want to do it in a low-pressure, low-stakes way that doesn’t feel like a job interview.”
Rascoff added that traditional dating apps can feel highly structured and intimidating for users under 30, while alternative social formats may offer lower-pressure ways for younger people to build connections.
“We’ve obviously adapted our roadmap to this reality,” he said.
Featured image credits: Wikimedia Commons
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