Match Group (MTCH.O), the parent company of Tinder, announced on Monday that Steven Bailey will be stepping in as the new Chief Financial Officer (CFO) starting early next year. This leadership transition reflects the company’s commitment to fostering long-term strategic growth and maintaining rigorous cost management.
Bailey, who has been with Match since 2012, currently serves as the Senior Vice President of Financial Planning and Business Operations. He will succeed Gary Swidler, who has held the CFO position for nearly a decade but will remain with the company as President.
The announcement comes at a challenging time for Match Group, as recent earnings reports indicated a third-quarter revenue forecast falling short of Wall Street expectations. This decline is attributed to a general pullback in consumer spending on dating applications, impacting user growth significantly. The number of paying Tinder users dropped by 8% to 9.6 million in the second quarter, continuing a trend following a 9% decrease in the previous quarter.
Match has also encountered setbacks with the rollout of new features across its key apps, including Tinder. In an effort to revitalize the business, the company has been implementing new subscription models and updating its applications.
Earlier this year, Match appointed Faye Iosotaluno as the new CEO of Tinder, just a day after reports emerged that Elliott Investment Management had acquired a significant stake of approximately $1 billion in the company.
The dating app operator has faced increasing pressure from activist investors, including Starboard Value, Elliott, and Anson Funds Management. These stakeholders have called for strategic changes in light of a slowdown in growth following the pandemic. Notably, in July, Starboard disclosed a 6.6% stake in Match, urging the company to consider a sale if it could not successfully rejuvenate its business model.
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