Users continue to swipe left on dating apps as Tinder sees a drop in paying users for the sixth straight quarter. Both revenue and profit fell short of expectations, with a 9% decrease in paying customers compared to the previous year — particularly struggling to attract Gen Z and female users. However, Tinder isn’t the only app facing challenges:

• Tinder assured investors they’ll improve their app, but analysts point to the “mixed impact of product improvement initiatives” as one reason shares keep sinking.
• Competitor BumbleBMBL
  had better luck, posting a 10.2% jump in revenue from 2023 while paying users grew 18% from the previous quarter — sending its stock up as much as 7% yesterday after hours.

So, what happened? The millennials who made Tinder a household name have mostly settled down — leaving these apps dependent on cash-strapped Gen Zers to pay for subscriptions. But it’s not just that their user base isn’t willing to spend — there’s also a cultural shift, with over 90% of Gen Z feeling “frustrated” with dating apps. Can the integration of AI into these apps ease these frustrations… or just make it worse?