Mario Lu : Great. A couple on Tinder. In terms of the fourth quarter payer number decline of 300,000 quarter-on-quarter, just curious if you could talk a bit more about the drivers there. And then given the payer definition, just curious if those payers were the ones that only bought à la carte previously and stopped for a large reason for the decline?
Gary Swidler : Sure. Let me take that one as well. So the fourth quarter Tinder’s payer number was really affected by a couple of things, which I kind of just alluded to. The first is the overall macro weakness and the pressure on the consumer, the younger consumer, consumers with less discretionary income, which is definitely impacting Tinder and the Tinder payer numbers generally as well as the product weakness and lack of product momentum that Tinder did not achieve in Q — in 2022. And so that manifests itself throughout the year and led to a weaker Q3 and Q4 from a Tinder payer perspective as well as a Tinder revenue growth perspective. And so those are really the two key factors that are affecting what you see in the Tinder payer number in Q4.
The thing that maybe we didn’t talk about as much on the last call, which we did end up doing starting in Q4 and we’re going to continue to do in Q1 and probably through most, if not all, of 2023 is we are doing a bigger focus on product — sorry, on pricing optimizations. And that’s a big initiative for us. We’re basically at Tinder eliminating more of the intro pricing and discount pricing than we had been planning to previously. That’s having an adverse effect on the Tinder payer numbers, and that’s what happened in Q4. But it’s relatively neutral to revenue. And so our goal is to get Tinder to much more optimal price points, which, again, will impact the payer numbers there. But longer term, it’s a revenue positive. We’ll essentially have fewer payers but at higher price points.
So that’s an ongoing project through the year, which is going to have some effect on Tinder payer numbers. As you know, we tend to target overall revenue goals, not specifically RPP or payer numbers at Tinder. And there’s going to be volatility in both those depending on the level of optimizations we do through the year, depending on our roadmap, depending on whether we do higher-priced tiers or not at Tinder. There’s a lot of variables that could be traded off by us in terms of RPP versus payers, but we’re somewhat indifferent to those two metrics. We are focused much more on revenue and revenue generation. The other part of your question I just wanted to quickly address is you asked about whether there was any impact from people who are just buying ALC products but are not subscribers at Tinder and did that have any effect on the Tinder subscriber numbers or payer numbers.
And I would tell you that they’re a relatively small, really pretty tiny component of overall Tinder payers. We don’t see that many Tinder payers who are only taking ALC but not a subscription. So that’s not really — that trend hasn’t changed, and that’s not really a meaningful impact on the payer numbers that you see in Q4 or in any other quarter. So the price optimizations are probably the one additional factor that I would highlight that affected those numbers.
Mario Lu : Great. And then in terms of Tinder growth for this year, I know you’re planning towards total revenue. But in terms of the 5% to 10% expected growth for this year and a slight growth in 1Q, is there any additional color you can provide just in terms of the drivers of growth between the payer users and then RPP?
