Tinder left swipes on the metaverse as the company reported a $10 million quarterly loss from the effort

Tinder swipes left the metaverse! Dating app backtracks on VR encounters and parts rides with CEO for one year after reporting a $10 million loss in the second quarter — which leads to a $1.7 billion acquisition of emerging VR technology and dwindling users

  • Tinder is backing off its efforts to expand into the metaverse
  • The online dating company recently announced an operating loss of $10 million
  • The metaverse, pushed by Meta CEO Mark Zuckerberg, could include virtual and augmented reality
  • Match Group CEO Bernard Kim says the ‘uncertainty’ about what will actually become the much-touted metaverse means caution is warranted.

The dating app Tinder has a message for the metaverse: It’s not you, it’s me.

The company is working to reduce its commitment to move into the much-touted world of virtual reality as it recovers from a $10 million operating loss in its most recent fiscal quarter.

In February 2021, Match Group bought South Korean company Hyperconnect for more than $1.7 billion. At the time, top executives touted the purchase as one that would see Match Group’s diverse dating apps slip to DMs from the future of the metaverse thanks to Hyperconnect’s live video and chat technologies.

The metaverse, which has been pushed hard by Meta CEO Mark Zuckerberg and other Silicon Valley tycoons, could include virtual reality as well as augmented reality that would combine aspects of the physical and digital world.

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Tinder reduces commitment to transition to virtual reality as it recovers from a $10 million operating loss in its latest fiscal quarter

Tinder CEO Renate Nyborg is leaving the company after just one year in the job.  The photo above is her resignation note from LinkedIn

Tinder CEO Renate Nyborg is leaving the company after just one year in the job. The photo above is her resignation note from LinkedIn

Bernard Kim, CEO of Tinder’s parent company, Match Group, praised how this metaverse technology is being integrated into some of the company’s non-Tinder apps, but also said there is ‘uncertainty’ about what will actually become a medium. Caution is necessary.

“I believe the converged dating experience is important to attract the next generation of users, and Hyperconnect has been innovating in this area,” Kim wrote in a note to shareholders on Tuesday.

However, due to uncertainty about the ultimate frontiers of metaverse and what will or may not work, as well as a more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in the metaverse at this time.

What is metaverse?

A “metaverse” is a collection of virtual spaces where you can play, work and communicate with others who are not in the same physical space as you.

Meta founder Mark Zuckerberg has been a pioneering voice in this concept, which is seen as the future of the internet and will blur the lines between physical and digital.

“You will be able to hang out with friends, work, play, learn, shop, create and more,” said Mita.

“It’s not necessarily about spending more time online – it’s about making the time you spend online more useful.”

As Meta leads the charge with the metaverse, it’s made clear that it’s not a single product a single company can build.

“Just like the internet, meaning exists whether or not Facebook exists,” she added.

And it won’t be built overnight. Many of these products will only be fully realized in the next ten to fifteen years.

“We will continue to carefully evaluate this space, and will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel our service is well positioned to succeed.”

The financial loss was particularly surprising as Kim boasted of strong growth in revenue and user base across Match’s various platforms, which include Match.com, Hinge, Plentyoffish and OkCupid.

However, attracting new users during the COVID-19 pandemic has been a challenge as Kim said engagement is still higher from pre-existing users rather than new users.

The purchase of the expensive Hyperconnect pushed the company further down the line, although it supposedly helped Match into the supposedly lucrative Asia Pacific market.

Kim admitted: “There is no doubt that buying Hyperconnect while the world was on lockdown due to COVID has slowed integration and our ability to work together to drive their growth.”

After just a few paragraphs, Kim announced that at least one match had not been made, in the end, in Heaven. Tinder CEO Renate Nyborg is leaving the company after just one year as CEO.

“I’ve loved every moment for the past two years working with an incredible team on the magic of human connection,” Nyborg said in a LinkedIn post.

Until a replacement is found, Kim said he and a team of executives will oversee the day-to-day operations of the popular dating app, which has more than 10 million paying users.

Seen above, Rinat Nyborg said in a LinkedIn post: ``I loved… working with a team that is incredible on the magic of human connection.

Seen above, Rinat Nyborg said in a LinkedIn post: “I loved… working with a team that is incredible on the magic of human connection.

Match’s reluctance to fully engage with the metaverse is just the latest indication that not everything is happy in the virtual world.

Back in October, tech mogul Mark Zuckerberg announced that his company Facebook would henceforth be known as Meta.

In a lengthy video, he outlined his goal of developing the social media platform into a complete virtual world that would co-exist alongside and overlap with the physical world – ultimately a space for up to a billion people.

But just last week, that great vision ran into a major snag. There may be staff cuts after revenue fell for the first time in the company’s history and is expected to fall further in the next fiscal quarter, Zuckerberg said on an earnings call.

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