Youssef Squali: Great. Thank you very much. So, Gary, staying on the topic of pricing for Tinder, what percentage of the user base is now being impacted by the price increase? And how much more headroom do you see in RPP in Q3 and the rest of the year? Thanks.
Gary Swidler: So, I would estimate that roughly 50% of the U.S. payer base is now paying the higher prices. And just so you understand, our approach around this is that payers don’t see or pay the higher prices until they churn off and are off Tinder for a period of time. And then when they come back again, which happens frequently, as you know, then they see the higher prices and become higher paid payer. So, we think that’s fair to the consumer and is the approach we’ve taken, which is why it’s taking time for this to roll through the U.S. payer base. From an RPP perspective, we saw the 10% year-over-year lift in RPP in Q2 at Tinder. And I think you should expect to see accelerating increases in RPP in Q3 and Q4, which is going to drive significant revenue acceleration as well at Tinder over the course of Q3 and then into Q4.
We are adjusting prices pretty meaningfully. The weekly subscription packages are having a significant contribution in RPP as well. So that’s a big driver of the overall revenue performance and performance at Tinder this quarter and for the next couple of quarters.
Youssef Squali: That’s very helpful. Thanks, Gary.
Gary Swidler: Sure.
Operator: Our next question comes from Alexandra Steiger with Goldman Sachs. Please go ahead.
Alexandra Steiger: Great. Thank you for taking my questions. Could you please double-click on the new refreshed core experience at Tinder that is launching later this month? And how you expect these new features to drive either engagement and/or monetization on the platform? And then on a related note, what are some other new features at Tinder that you’re excited about that could potentially have an impact in the near to medium term? Thank you.
Bernard Kim: Thanks, Alexandra, for the question. So, if you actually look at Tinder today, it’s really similar to the product that was launched 10 years ago. I tried the app when I was in Los Angeles about 10 years ago, and I tried the app today and it felt pretty similar. So, what I’ve done is I’ve challenged the teams to make Tinder feel more vibrant and alive, going through like an overall and potential refresh of the product experience. What the teams were able to do creatively is to look at ways to bring more depth into member profiles and also keep that core experience intact. This is actually coming from extensive testing with our core users and direct feedback from Gen Z and our younger users. I think this experience will have a more modern look and feel and drive engagement, which will lead to more success on the platform and more conversations.
But there is a balancing act here. The swipe is critical for Tinder’s identity and experience, and people come in to swipe profiles. People love it. So, I want to make sure that members engage in more meaningful ways, so we have to make sure that we’re balancing that swipe experience with a great UX that delivers a new experience that resonates with the new generation of users. And I really believe we’ve nailed it. I feel really positive about the work that our product and design teams have done together, and we’ll be rolling that over the next couple of months.
Operator: Our next question comes from Mario Lu with Barclays. Please go ahead.
Mario Lu: Great. Thanks for taking the question. So, a similar follow-up in terms of the Tinder second half features. You mentioned in the shareholder letter, it will be focused on Gen Z as well as AI capabilities. So, just wondering if you could expand a bit more on why you’re confident that these features will drive engagement and monetization. And then also, does this imply that Tinder Coin is no longer in the roadmap? Thanks.
Bernard Kim: Thanks, Mario, for the question. Our Tinder roadmap was designed and structured in a way that we could focus on delivery that could drive real wins for us in the first half of the year and build momentum for us throughout the entire year. We’re successful in rolling out pricing optimizations and weekly subscriptions, and that has built that freedom and momentum to really think creatively about what we deliver for the second half of the year. So, I’m really actually excited about some of the great initiatives that we have in the second half of the year, like the product refresh that I mentioned earlier and also the launch of our premium experience. Tinder Coins is still on the roadmap, and we’re currently testing and it’s an iterative process to figure out what the best value proposition for our members.
So, we’re testing it right now, but we don’t see it contributing to 2023 revenue. But when I generally think about the features on the roadmap, I have to make prioritization decisions. And with the advent of generative AI and the excitement and enthusiasm that we’re seeing across all of our different teams, I’ve made the call to prioritize generative AI initiatives with Tinder over other initiatives like Coins. And I think that will deliver value to our members sooner. Thanks for the question.
