Tinder will kill crypto, metaverse plans amid loss of Match Group revenue; Tinder loses CEO

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Dating giant Match Group announced a number of changes to Tinder’s management team, as well as disappointing second-quarter earnings on Tuesday. Notably, Tinder CEO Renate Nyborg will leave the company. in less than a year in the highest position. The Match Group is also killing Tinder’s plans to introduce new technologies such as cryptocurrencies and dating based on the metaverse.

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In shareholder letterMatch Group CEO Bernard Kim expressed disappointment with Tinder’s current performance, noting that the popular dating app has failed to realize its typical monetization success over the past few quarters and failed to meet the company’s initial expectations for revenue growth in the second half of 2022.

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Kim attributed Tinder’s problems to “the poor execution of several optimizations and new product initiatives,” but added that the performance and speed of the Tinder product could still be improved.

Along with Nyborg’s departure, Tinder will have a reorganized management team that also includes:

  • COO Fei Yosotaluno, former chief strategy officer of Match Group, as chief operating officer of Tinder.
  • CPO Mark van Risviek, director of product at Tinder. Ryswick is an experienced gaming executive who joined the company in June.
  • CMO Melissa Hobley, former CMO of OKCupid, as CMO of Tinder.
  • CTO Tom Jacques, CTO of Tinder. A veteran of Match Group with 11 years of experience, he has been CTO of Tinder for the last 5 years.
  • Advisor to Amaranth Tombre. The current CEO of Match Group Americas and a 15-year veteran of Match Group will advise Tinder management on the product roadmap and development.
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Kim said he would oversee the team while Tinder looked for a permanent CEO.

There was also a hint in reading between the lines that a younger generation of users may have lost interest in dating apps like Tinder, a cultural shift that can’t simply be chalked up to the lingering effects of the pandemic. The letter notes that people have overcome Covid lockdowns and returned to “a more normal lifestyle,” but their willingness to try online dating apps for the first time has not returned to pre-pandemic levels.

Instead, Match Group reports that the most engagement right now comes from existing users.

As part of its reconstruction Tinder’s ambitions for the “dating metaverse” were drastically reduced. The company planned to use its Acquisition of hyperconnection create a new form of online dating in a virtual environment, but those ideas are on hold as the Match Group must now tackle broader issues.

“…Given uncertainty about the final contours of the Metaverse and what will and will not work, as well as a more complex operating environment, I have instructed the Hyperconnect team to iterate but not invest heavily in the Metaverse at this time,” he wrote. Kim. “We will continue to carefully evaluate this space and consider moving forward at an appropriate time when we have more clarity on the overall capability and feel like we have a service that has every chance of success.”

Also on the block was crypto.

“After seeing the mixed results from testing Tinder Coins, we decided to take a step back and revisit this initiative so that it can more effectively generate revenue for Tinder,” said Kim. “We also intend to think more about virtual goods to make sure they can be a real driver for Tinder’s next phase of growth and help us unlock untapped power users on the platform,” he added.

The company says it is still planning to develop features that will make Tinder more appealing to women, including a subscription-based package that will provide “curated recommendations” as well as features designed to get friends to connect. It will also look to other products for new features, such as live video streaming, to drive adoption.

Overall, Match had $795 million in revenue for the second quarter of 2022, up 12% year-over-year but below the Wall Street average. estimates $804.22 million. It also posted a loss of $31.86 million, or 11 cents per share, compared to 46 cents in the year-ago quarter. Analysts had expected earnings of 57 cents per share. Match said it had an operating loss of $10 million, impacted by a $217 million intangible asset write-off related to lower financial projections for its Azar and Hakuna applications from Hyperconnect.

Estimates for the upcoming quarter weren’t good either, with Match Group forecasting solid third-quarter revenue growth from $790 million to $800 million, below the $883 million estimate. Tinder’s revenue growth is expected to be “mid single digits”.

Shares fell more than 20% after the close of trading on the news.

Credit: techcrunch.com /

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