The Bumble Trading Inc. website on a smartphone arranged in the Brooklyn borough of New York, U.S., on Monday, Jan. 4, 2021.
Gabby Jones | Bloomberg | Getty Images
Dating apps have been operating on the same model for years: Users throw in a handful of pictures and fill out a bio. For the most part, people look at those profiles and swipe left to deny, or right to express interest. If two people swipe right, they match and could end up on a date.
But now that’s changing.
The pandemic has caused a level of disruption that’s allowed companies to consider what the future of dating apps without mindless swiping might look like.
Look to Bumble, for example, which has a “Night In” trivia option. The feature lets users set up a virtual trivia date if they match with someone. It also allows users to send matches voice memos, a feature that went viral on TikTok earlier this year.
And Tinder, Match Group‘s largest dating app, has “Swipe Night,” a live, interactive dating feature where singles follow a storyline together. During a set period of time, people try to figure out who committed the made-up crime. At the end of each episode, members work with another participant through “Fast Chat,” where they’ll be able to talk about the story, analyze different clues, and help solve the mystery together. They can also later choose to match.
The addition of videos and audio will let people interact in a way that hasn’t been done yet with online dating, with the hopes they’ll spend more time on the apps (bringing in more money) and form better connections that could draw more people online.
The companies have hinted that there’s more to come in terms of social elements and more interactive features, but haven’t said exactly what’s on their product roadmaps. Potential features could include a Clubhouse-like audio chat or more ways to integrate friends into the experience.
“While swiping left and right has meaningfully changed how singles connect, we think users want more control over that experience,” Citi senior analyst Nicholas Jones told CNBC in an email. “To maintain a healthy and engaged network, BMBL will need to continue to innovate to provide users the experience they are looking for.”
Users have made it clear they’re interested in meeting up over video as a way to break the ice or check a date’s “vibes” before seeing them in person. Tinder said that nearly of users had a video chat with a match during the pandemic, while 40% planned to continue using video even when the pandemic is over.
Singles know what they’re looking for
Bumble said that coming out of the pandemic, people are “much clearer” with what they’re looking for from a relationship.
“We are really trying to give them the tools to do that and make the experience better for the more serious and intentional types of relationships that our users are talking about,” Bumble President Tariq Shaukat said on the company’s most recent earnings call. “So, a lot of what we’ve done in Q2 as well as the plan for Q3 and Q4 is really focused on activities like that in addition to new monetization features.”
Bumble, as mentioned, has Night In and the option to send things like pictures, voice notes and GIFs to matches. But the company could introduce things like video to users’ profiles or new ways to discover users outside of swiping right and left.
Tinder also added videos in-app and announced a “discover” section that mimics social media feeds. Users can see potential matches who share similar interests with them, like if someone has pets or is into skydiving.
Tinder said the changes are an effort to give Gen Z users what they want.
“Gen Z is using Tinder on their terms; bios alone don’t always tell enough of the story to get to a Like or a Nope,” the company said in June. Tinder is focused on the moment when someone is ready to swipe left or right on another user, CEO Jim Lanzone later explained to CNBC.
“That’s a really rich area for innovation,” he said. “This is the beginning of something.”
Lanzone joined Tinder last year after leading CBS Interactive, where he developed the company’s push into streaming. The executive’s hire was a clear indication Tinder wants to push more into video. But this time, he said, the focus is on making connections, not entertainment.
“Tinder itself is likely the number one generator of new relationships in the country, and probably marriages as well, on top of all the other connections that we make. And that’s not always something you can decide on the fly from just from someone’s photo or bio, though those are important, and Tinder, obviously, was a pioneer in moving category that way,” Lanzone added. “But we have this really rich roadmap now of, years probably, of innovation.”
Tinder’s parent company is also making broader moves. Earlier this summer, Match closed its $1.7 billion acquisition of Hyperconnect, a social networking company that’s credited with building “the first mobile version” of WebRTC. That will allow the company to focus on its research & development, adding more live chat features and video experiences to its apps.
Match COO Gary Swidler said on the company’s most recent earnings call that it expects at least two of its brands to use Hyperconnect tech before the end of the year, while a number of other brands will implement its tech by the end of 2022. The company hasn’t detailed exactly what the additions would look like, but it could include things like live broadcast or even more chat additions.
Intuit CEO Sasan Goodarzi speaks at the opening night of the Intuit Dome in Los Angeles on Aug. 15, 2024.
Rodin Eckenroth | Filmmagic | Getty Images
Intuit shares fell 6% in extended trading Thursday after the finance software maker issued a revenue forecast for the current quarter that trailed analysts’ estimates due to some sales being delayed.
Here’s how the company performed in comparison with LSEG consensus:
Earnings per share: $2.50 adjusted vs. $2.35 expected
Revenue: $3.28 billion vs. $3.14 billion
Revenue increased 10% year over year in the quarter, which ended Oct. 31, according to a statement. Net income fell to $197 million, or 70 cents per share, from $241 million, or 85 cents per share, a year ago.
While results for the fiscal first quarter topped estimates, second-quarter guidance was light. Intuit said it anticipates a single-digit decline in revenue from the consumer segment because of promotional changes for the TurboTax desktop software in retail environments. While that will affect revenue timing, it won’t have any impact on the full 2025 fiscal year.
Intuit called for second-quarter earnings of $2.55 to $2.61 per share, with $3.81 billion to $3.85 billion in revenue. The consensus from LSEG was $3.20 per share and $3.87 billion in revenue.
For the full year, Intuit expects $19.16 to $19.36 in adjusted earnings per share on $18.16 billion to $18.35 billion in revenue. That implies revenue growth of between 12% and 13%. Analysts polled by LSEG were looking for $19.33 in adjusted earnings per share and $18.26 billion in revenue.
Revenue from Intuit’s global business solutions group came in at $2.5 billion in the first quarter. The figure was up 9% and in line with estimates, according to StreetAccount. Formerly known as the small business and self-employed segment, the group includes Mailchimp, QuickBooks, small business financing and merchant payment processing.
“We are seeing good progress serving mid-market customers in MailChimp, but are seeing higher churn from smaller customers,” Sandeep Aujla, Intuit’s finance chief, said on a conference call with analysts. “We are addressing this by making product enhancements and driving feature discoverability and adoption to improve first-time use and customer retention.”
Better outcomes are a few quarters away, Aujla said.
CreditKarma revenue came in at $524 million, above StreetAccount’s $430 million consensus.
At Thursday’s close, Intuit shares were up about 9% so far in 2024, while the S&P 500 has gained almost 25% in the same period.
On Tuesday Intuit shares slipped 5% after The Washington Post said President-elect Donald Trump’s proposed “Department of Government Efficiency” had discussed developing a mobile app for federal income tax filing. But a mobile app for submitting returns from Intuit is “already available to all Americans,” CEO Sasan Goodarzi told CNBC’s Jon Fortt.
Goodarzi said on CNBC that he’s personally communicating with leaders of the incoming presidential administration.
On the earnings call, Goodarzi sounded optimistic about the economy.
“Our belief, which is not baked into our guidance, is that we will see an improved environment as we look ahead in 2025, particularly just with some of the things that I mentioned earlier around just interest rates, jobs, the regulatory environment,” he said. “These things have a real burden on businesses. And we believe that a better future is to come.”
Bluesky has surged in popularity since the presidential election earlier this month, suddenly becoming a competitor to Elon Musk’s X and Meta’s Threads. But CEO Jay Graber has some cautionary words for potential acquirers: Bluesky is “billionaire proof.”
In an interview on Thursday with CNBC’s “Money Movers,” Graber said Bluesky’s open design is intended to give users the option of leaving the service with all of their followers, which could thwart potential acquisition efforts.
“The billionaire proof is in the way everything is designed, and so if someone bought or if the Bluesky company went down, everything is open source,” Graber said. “What happened to Twitter couldn’t happen to us in the same ways, because you would always have the option to immediately move without having to start over.”
Graber was referring to the way millions of users left Twitter, now X, after Musk purchased the company in 2022. Bluesky now has over 21 million users, still dwarfed by X and Threads, which Facebook’s parent debuted in July 2023.
X and Meta didn’t immediately respond to requests for comment.
Threads has roughly 275 million monthly users, Meta CEO Mark Zuckerberg said in October. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates 318 million monthly users as of October.
Bluesky was created in 2019 as an internal Twitter project during Jack Dorsey’s second stint as CEO, and became an independent public benefit corporation in 2022. In May of this year, Dorsey said he is no longer a member of Bluesky’s board.
“In 2019, Jack had a vision for something better for social media, and so that’s why he chose me to build this, and we’re really thankful for him for setting this up, and we’ve continued to carry this out,” said Graber, who previously founded Happening, a social network focused on events. “We’re building an open-source social network that anyone can take into their own hands and build on, and it’s something that is radically different from anything that’s been done in social media before. Nobody’s been this open, this transparent and put this much control in the users hands.”
Part of Bluesky’s business plan involves offering subscriptions that would let users access special features, Graber noted. She also said that Bluesky will add more services for third-party coders as part of the startup’s “developer ecosystem.”
Graber said Bluesky has ruled out the possibility of letting advertisers send algorithmically recommended ads to users.
“There’s a lot on the road map, and I’ll tell you what we’re not going to do for monetization,” Graber said. “We’re not going to build an algorithm that just shoves ads at you, locking users in. That’s not our model.”
Bluesky has previously experienced major growth spurts. In September, it added 2 million users following X’s suspension in Brazil over content moderation policy violations in the country and related legal matters.
In October, Bluesky announced that it raised $15 million in a funding round led by Blockchain Capital. The company has raised a total of $36 million, according to Pitchbook.
Alphabet shares slid 6% Thursday, following news that the Department of Justice is calling for Google to divest its Chrome browser to put an end to its search monopoly.
The proposed break-up would, according to the DOJ in its Wednesday filing, “permanently stop Google’s control of this critical search access point and allow rival search engines the ability to access the browser that for many users is a gateway to the internet.”
This development is the latest in a years-long, bipartisan antitrust case that found in an August ruling that the search giant held an illegal monopoly in both search and text advertising, violating Section 2 of the Sherman Act.
The potential break-up would include preventing Google from entering into exclusionary agreements with competitors like Apple and Samsung, part of a set of remedies that would last 10 years.