(Bloomberg) — Match Group Inc. lowered two of its fourth-quarter revenue forecasts on Wednesday, disappointing investors who have been waiting for a turnaround at the dating app company.
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The firm will also initiate a cash dividend program and has authorized $1.5 billion in new share buybacks, it said in a statement on Wednesday.
Match, which owns dating apps including Tinder, Hinge and OKCupid, said it expects fourth-quarter total revenue and Tinder direct revenue to be below its previous forecast, citing foreign currency headwinds. It said the results would have been in the expected range, if not for the currency impacts.
Shares of Match were down 3.8% in premarket trading in New York.
The cash dividend will amount to 19 cents per share and will be payable on Jan. 21, 2025 to shareholders of record as of the close of business on Jan. 6, 2025. The company expects to declare a dividend of a similar amount on a quarterly basis going forward and that it has the capacity to increase the size in the future. Match also intends to resume share buybacks after it releases its fourth-quarter financial results.
Overall, the company plans to return at least 100% of free cash flow to its shareholders over the next three years through a combination quarterly dividends and share purchases.
Match announced the plan ahead of its first investor day, which started at 9 a.m. in New York on Wednesday. Investors will hear from Match Chief Executive Officer Bernard Kim, the company’s chief technology officer and the chief financial officer. Leaders from Match’s four business segments — Tinder, Hinge, evergreen and emerging brands, and Asia — will also give presentations.
The company faces lofty expectations for the investor meeting, as activists and analysts await a concrete plan for reversing persistent subscriber declines at its flagship dating app, Tinder.
The capital return plan fulfills a call from at least one of Match’s activist investors, Starboard Value, which asked the company to return at least 75% in free cash flow using buybacks.
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