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Online dating company Match Group has scaled back plans for Metaverse Dating and Tinder Coin after poor second quarter results.
The company, which operates brands such as Tinder, Match and OkCupid, announced in its earnings letter to shareholders a review of Tinder’s management, including the resignation of CEO Renate Nyborg.
Match Group CEO Bernard Kim said Tinder’s financial and product optimization performance has fallen short of expectations. Kim added that he believes improvements could be seen with better “product execution and speed,” which he believes will increase user excitement.
“Tinder current earnings growth 2H forecasts are lower than ours OriginalFinal expectations as a result Regarding some optimizations and disappointing execution on new product initiatives.”
However, the strong performance of other portfolio brands, especially the recently acquired The League, makes Kim optimistic about future growth opportunities.
Second quarter 2022 financial results showed revenue of $795 million, up 12% year over year. However, it posted a net loss of $31.9 million and a profit of $140.9 million in the second quarter of 2021.
Match Group said the $10 million operating loss was due to a $217 million write-down of Azar and Hakuna’s intangibles due to lower financial prospects for the two apps and the impact of foreign exchange. In the second quarter of 2021, the company posted his $210 million operating profit.
The outlook for the second half of 2022 is for lower top-line growth.
A letter from shareholders shows plans to scale back the Metabirthday and Tindercoin projects in a business review.
Kim said he believes Metaverse dating is “important for reaching the next generation of users.” However, the uncertainty about the success of its execution does not justify a large investment at this time. Instead, the project team “iterates” on the idea.
“But given the uncertainty,Ultimate contours of the metaverse and what works and what doesn’t, and more Challenging operating environment.
Likewise, concerns about how best to leverage virtual goods in the current macro environment are causing management to rethink Tinder Coin. Kim added that once Tinder’s new management team settles down, decisions about its future will be made.
“After seeing the various results of the tests, tinder coins, decided to take a step back We will revisit that initiative so that it can more effectively contribute to Tinder’s revenue.
