Match Group Ditches Metaverse Dating and Tinder Coin After Swinging to a Loss in Q2
Following a disappointing Q2, online dating company Match Group steps back from plans for metaverse dating, among others.
Match Group scales back metaverse plans amid uncertain market conditions
The company behind Tinder and Match.com, Match Group, is ditching plans for metaverse dating and Tinder Coin after swinging to a loss in Q2 2022. In an earnings letter to shareholders, Bernard Kim, the CEO of Match Group also announced a re-org for the Tinder management team. One of which includes the departure of Tinder CEO Renate Nyborg.
Looking at the financial results, Match Group saw a 12% year-over-year increase in revenue to $795 million in Q2 2022. But net losses came in at $31.9 million against a profit of $140.9 million in Q2 2021. In fact, the online dating company clocked in a $10 million operating loss due to a $217 million write-down of the Azar and Hakuna intangible assets. Lower financial outlook and FX impacts are some of the reasons behind it.
Given that, the company laid out plans to cut back on the metaverse dating and Tinder Coin projects.
“I believe a metaverse dating experience is important to capture the next generation of users, and Hyperconnect has been innovating in this area. However, given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time,” wrote Kim.
As for the Tinder Coin, Kim noted: "After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue. We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder’s next leg of growth and help us unlock the untapped power users on the platform.”
Even so, Kim is confident that these measures will help Tinder to make meaningful product progress in the second half of 2022. In turn, positioning it to achieve higher growth rates in 2023 and beyond.
Without a doubt, 2022 has been a tough year for those who are vested in Web3. Despite that, institutions remain bullish in this space, with VC firms seen pouring money into Web3 startups like no one's business.