As business faces troubles Tinder steps back from metaverse dating plans

Match, the parent company of Tinder, makes a significant announcement despite having a pretty underwhelming second quarter profits. It explained how it is lowering the app’s expectations for dating in the metaverse and scrapping plans to provide Tinder Coins as an in-app currency. Renate Nyborg, Tinder’s first female CEO, is also resigning from her post as chief executive.

She had previously mentioned Tinder’s aspirations for the metaverse as it acquired Hyperconnect in 2021. With Nyborg refers to its “Single Town” experience as a tool for Tinder users to utilise at some time to communicate with individuals in the virtual world, its main focus is on artificial intelligence, augmented reality, and video.

On the other hand, Hyperconnect has been forced to retreat, according to the new CEO, Bernard Kim. He said that this was caused by the VR’s inherent uncertainties and its complex operating environment. He did, however, make plain how Tinder will continue to assess the metaverse and decide on the next step at the appropriate time when they had a better understanding. Additionally, Match Group pointed out that the $10 million loss in the previous quarter was partially a result of the Hyperconnect transaction.

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Further changes:

There was also a fairly uninteresting update involving Tinder Coins. The business believed that this money would encourage greater spending. It would primarily function in the form of prizes that it would provide users for their frequent usage of the app and by enabling direct app purchases. Additionally, it could be employed to pay for premium features like Super Likes.

However, the CEO made clear that the Coins plans are also being reviewed in light of a variety of conflicting test results. As of right now, Tinder has decided to take a little break and reevaluate how it can better contribute to its services. Although it was intended to offer the functionality broadly in the future, it has only been soft-launched as of this writing.

Despite the company’s sales generally increasing, sources state that its profit, which came in at $795 million as opposed to analysts’ projections of $804 million, did not meet expectations. Additionally, it forecasts very little revenue growth for the second part of the year. It mentioned how the distribution of vaccinations caused an increase in engagement in the app in 2021. It isn’t exactly anticipating an increase this year, though.

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