By Jaspreet Singh

(Reuters) – Match Group projected fourth-quarter revenue below Wall Street estimates on Wednesday, indicating that a turnaround of its dating apps, including Tinder, would take longer. This news led to a more than 13% drop in the company's shares during extended trading.

The company also missed third-quarter revenue estimates, contrasting with smaller rival Bumble (NASDAQ:BMBL), which reported upbeat quarterly revenue boosted by the launch of a refreshed Bumble app.

The weak results could provide activist investors, including Starboard Value, Elliott Investment Management, and Anson Funds Management, additional leverage in their efforts to prompt changes at the company, which has faced slow growth for two years.

Following peaks during the pandemic, Match has experienced a slowdown in demand due to economic uncertainty and a lack of new features, prompting people to reduce spending on its dating apps, which also include Hinge, OkCupid, and Plenty of Fish.

The company projects revenue between $865 million and $875 million for the fourth quarter, compared to analysts' average estimate of $905.4 million, according to data compiled by LSEG.

Total paying users declined by 3% to 15.2 million in the third quarter, marking an eighth consecutive quarter of decline.

Match expects a mid-single digit decline in paying users for Tinder in the fourth quarter compared to a year ago.

"We expect to see tangible markers of improvement as Tinder's new features roll out over the coming quarters," said CEO Bernard Kim.

Tinder continues to be the largest among the dating apps this year, with 36% of total monthly active users in the United States, followed by Hinge and Bumble with 22% each, according to market intelligence firm Sensor Tower.

Hinge remained a bright spot for the company in the third quarter, with revenue increasing 36% to $145.4 million and users growing by 21%.

Match's third-quarter revenue grew by 2% to $895 million, missing estimates of $900.9 million. Profit per share was 51 cents, compared to estimates of 48 cents.