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Revenue
Advertising Revenue
var14
var14
Paid Subscriptions
var1 2 comments
var1 2 comments
Total Revenue
Expenses
App Store Cut on Revenue
var50
var50
Marketing Cost
var15 1 comment 1 source
var15 1 comment 1 source
Office Rent
var10
var10
Server Costs / Tech Infrastructure
var9
var9
Salaries
var6
var6
Total Expenses
Profit
Show Submodel
15,000,000
Show Submodel
576,000,000
$591 Million
Show Submodel
172,800,000
20,000,000
Show Submodel
4,200,000
5,000,000
Show Submodel
84,000,000
$286 Million
$305 Million
Revenue Variables
Advertising Revenue
15,000,000
15,000,000
Submodel formula
Paid Subscriptions576,000,0006 * Paid Subscriptions576,000,0008 / 1000
Paid Subscriptions576,000,0006 * Paid Subscriptions576,000,0008 / 1000
Comment
Paid Subscriptions
576,000,000
576,000,000
Submodel formula
Number of paid subscribers3,200,000 * Average cost of a subscription (Tinder Plus or Tinder Gold)15 * Paid Subscriptions576,000,0003
Number of paid subscribers3,200,000 * Average cost of a subscription (Tinder Plus or Tinder Gold)15 * Paid Subscriptions576,000,0003
2 comments
Gabe
Really nice concept =) Btw, how did you get that number (paid subscriptions)?
over 1 year
Emmanuel
@Gabe
Thank you Gabe ! The breakdown for this number can be found in its "submodel" (you can click on "show submodel" next to it and then click on each variable name to see the comments and sources I've added.
over 1 year
Comment
Expense Variables
App Store Cut on Revenue
172,800,000
172,800,000
Submodel formula
Average cost of a subscription (Tinder Plus or Tinder Gold)151 * Paid Subscriptions576,000,000
Average cost of a subscription (Tinder Plus or Tinder Gold)151 * Paid Subscriptions576,000,000
Comment
Marketing Cost
20,000,000
20,000,000
1 comment
Emmanuel
This variable is pretty hard to estimate. Tinder has done several marketing campaigns. A list of some major ones with a few examples can be found in the link below. However I'm not sure how much they spend in advertising, perhaps sponsoring celebrities, perhaps paid acquisition in some countries etc. I gave a rough estimate but it's very uncertain.
over 1 year
Comment
Office Rent
4,200,000
4,200,000
Submodel formula
Paid Subscriptions576,000,0001 * Paid Subscriptions576,000,0002 * 12
Paid Subscriptions576,000,0001 * Paid Subscriptions576,000,0002 * 12
Comment
Server Costs / Tech Infrastructure
5,000,000
5,000,000
Comment
Salaries
84,000,000
84,000,000
Submodel formula
(Average Annual Salary118,000 + Paid Subscriptions576,000,0009) * # of employees500
(Average Annual Salary118,000 + Paid Subscriptions576,000,0009) * # of employees500
Comment
Other variables in submodels
Percentage of Revenue going to App Store (Apple, Google)
30%
30%
Comment
Payroll Tax, Health Coverage, 401K... per employee
50,000
50,000
Comment
Average ad revenue per 1000 users per year
300
300
Comment
Total # of Users
50,000,000
50,000,000
1 comment
Emmanuel
In this old (2014) article in the NY times, Tinder was said to approach 50 million users. It is unclear how reliable this figure is and if this is the number of downloads or active users. While the number of downloads might be now a lot higher than that, not everyone that downloaded it uses a dating app every month for several years. So I'm keeping the 50 million number for active users for caluculation of advertising revenue.
over 1 year
Comment
Average # of months where subscription is active
12
12
4 comments
User #4
This seems high from a perspective of "once a user converts from a paid=>unpaid, do they ever re-up?"
Zoosk churns 50% of users YoY that pay ANYTHING, not for a subscription. I imagine the average user pays for 1-3 months, doesn't realize any value, and then doesn't pay again.
Source https://seekingalpha.com/article/2183013-ipo-of-the-dating-app-everyone-isnt-talking-about?page=3
over 1 year
Emmanuel
Based on a comment on HackerNews and another feedback I've received, it seems that Tinder is comparable to other top grossing apps such as Candy Crush and Pokemon Go who are grossing more than $1million/day. To make sens of that, I'm taking te assumption that they always have more than 3 million subscribers at any time, regardless of churn (new customers replacing those who cancel at a higher rate). Hence it's as if one subscriber paid for 12 months in a year.
over 1 year
Emmanuel
Based on a comment on HackerNews and another feedback I've received, it seems that Tinder is comparable to other top grossing apps such as Candy Crush and Pokemon Go who are grossing more than $1million/day. To make sens of that, I'm taking te assumption that they always have more than 3 million subscribers at any time, regardless of churn (new customers replacing those who cancel at a higher rate). Hence it's as if one subscriber paid for 12 months in a year.
over 1 year
Emmanuel
@User #4
Thanks for your comment ! For the sake of modelling, I think that the number of new customers that Tinder gets is higher than the ones who are churning, so we can assume the total number of subscribers is growing, at least a little. Another thing to keep in mind is that many people seem to find value in Tinder, in that way it might work more for people using it than Zoosk (that relied a lot on advertising for acquiring users, not the vast organic and popular success that is Tinder)
over 1 year
Comment
Average Monthly cost of desk
700
700
Comment
# of employees
500
500
Comment
Average Annual Salary
118,000
118,000
1 comment
Emmanuel
About the salaries, I would say that they compare more to companies like Snapchat or Facebook trying to hire the best engineers, mobile UX designers, data analysts etc and that can drive up the average salary a lot, especially in California where the competition for talent is fierce. I've made some more research and found this website, Paysa, to give estimates of average salaries for companies, they say $118K at Tinder.
over 1 year
Comment
# of employees
500
500
1 comment
Emmanuel
In this article from Recode, Sean Rad said that Tinder "has roughly 200 employees, with plans to double in size over the next 12 to 18 months". We can estimate about 500 employees now
over 1 year
Comment
Average cost of a subscription (Tinder Plus or Tinder Gold)
15
15
4 comments
Emmanuel
A brief description of Tinder Plus and Tinder Gold can be found on their website.
over 1 year
Emmanuel
Another more detailed description of their various paid in-app purchases and subscriptions on this link with a list of the different prices. 5 is just an estimate for the average spent per paid user
over 1 year
Emmanuel
Updated to an average of $10, after some feedback that several "power users" might be spending a lot more than the average subscription with other in-app purchase. Also because Tinder is in the top grossing app on the app store (generally Top 5) and the other companies there make higher revenue that what I had previously estimated
over 1 year
Emmanuel
Increased again the ARPU based on this estimate from ThinkGaming using app store grossing rankings as reference
over 1 year
Comment
Number of paid subscribers
3,200,000
3,200,000
1 comment
Emmanuel
Number of 3 million subscribers taken from this reuters link about Match Group. Adjusted with some growth after a few more months since the article
over 1 year
Comment
