Tinder eliminates virtual currency and metaverse goals in the wake of Match Group’s demise; CEO exits.
Tuesday, Match Group disclosed 2Q profitability and Tinder management changes. Renate Nyborg is leaving Tinder. Tinder’s attempt to combine dating and virtual currency failed.
Match Group CEO Bernard Kim wrote to shareholders that Tinder hasn’t had its usual monetization success and won’t meet revenue growth estimates for the second half of 2022.
Kim blamed Tinder’s problems on “disappointing execution on various optimizations and new product efforts,” but said product execution and velocity could be improved.
Reading between the lines, there was also a hint that younger users may have lost interest in dating applications like Tinder – a social shift that can’t be attributed to pandemic effects.
People have gone past COVID lockdowns and returned to “regular life,” but their desire to test online dating applications hasn’t restored to pre-pandemic levels.
Tinder has reduced its “dating metaverse” aims. Match Group wanted to use its Hyperconnect acquisition to create virtual online dating, but those ambitions are on hold.
Tinder Coins were also eliminated. Match Group hadn’t disclosed blockchain interfaces for the currency, but its metaverse ideas hinted at a crypto future.
Kim admitted on an investor call that Tinder Coins wasn’t released logically, since a company would usually develop demand for virtual things and collectibles first.
He claimed suspending Tinder Coins was “frustrating” but necessary. Instead of a relaunch, the company is focusing on an autumn short-term subscription.
Tinder wants to introduce components to appeal to women, including a subscription-based package with “tailored recommendations” Promoting other products via livestreaming footage.
Match’s Q2 2022 revenue was $795 million, up 12% year-over-year but below Wall Street projections of $804.22 million.
It lost $31.86 million, or 11 cents per share, year-over-year. 57-cent EPS was expected. Match lost $10 million after writing down intangibles worth $217 million.
Match Group paid users rose 10% to 16.4 million. Tinder direct revenue climbed 13% year-over-year, led by 10.9 million new paying users.