Match Group cuts plans for Metaverse dating, Tinder Coins

After disappointing Q2 results, Match Group has cut back its plans for Metaverse Dating and Tinder Coins.

In an earnings letter to shareholders, the company, which operates the Tinder, Match, and OkCupid brands, announced an overhaul of its management team, including the departure of CEO Renate Nyborg.

Match Group CEO Bernard Kim said Tinder's financial and product optimization performance is below expectation. He believes that improvements could be made from better product execution and velocity, which will lead to greater excitement among users.

Kim is optimistic about growth opportunities going into the future because of the strong results from other portfolio brands, particularly from recently acquired The League.

Revenue was $795 million, up 12% year-over-year, according to Q 2 2022 financial results. Net losses came in at $31.9 million versus a profit of $140.9 million for Q 2 2021.

Match Group said that it had lost $10 million due to a $217 million write-down of Azar and Hakuna intangible assets, due to a lowered financial outlook for the two apps, and the impact of foreign exchanges. The company posted $210 million in Q2 of 2021, which was the company's operating income.

The outlook is in the second half of 2022 as muted top-line growth. The shareholders letter laid out plans to curtail the Metaverse Dating and Tinder Coin projects in order to overhaul its operations.

Kim believes that Metaverse dating is important to capture the next generation of users. At this time, there isn't much investment warranted by the uncertainty surrounding its successful execution. The project team is to iterate on ideas.

Management thinks that Tinder Coin is re-thinking due to concerns over how virtual goods can best be used in the current macro environment. Kim said that a decision on its future will be made once the new Tinder management team settles in.