Tinder scrolls the metaverse to the left as the company reports a $10 million quarterly loss from efforts

Tinder swipes left across the metaverse! The dating app is ditching VR meetings and parting ways with the CEO after it reported a $10 million second-quarter loss, which it attributed to a $1.7 billion buyout of a VR tech startup and a dwindling user base.

  • Tinder is abandoning its efforts to expand into the metaverse
  • An online dating company recently reported an operating loss of $10 million.
  • The Metaverse, promoted by Meta CEO Mark Zuckerberg, could include virtual reality and augmented reality.
  • According to Match Group CEO Bernard Kim, the “uncertainty” about what the much-touted metaverse will actually turn out to be means that caution is needed.

Dating App Tinder there is a message for metaverseA: It’s not you, it’s me.

The company is trimming its commitment to moving into the much-touted field of virtual reality as it recovers from a $10 million operating loss in its latest fiscal quarter.

In February 2021, Match Group bought South Korean company Hyperconnect for over $1.7 billion. At the time, top executives touted the purchase as a purchase that would see Match Group’s various dating apps move into the DM of the future metaverse through live video and Hyperconnect chat.

A metaverse that has been pushed hard Meta Executive Director Mark Zuckerberg and other Silicon Valley moguls, could include virtual reality as well as augmented reality, which would combine aspects of the physical and digital worlds.

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Tinder is cutting back on its commitment to moving into the realm of virtual reality as it struggles to cope with a $10 million operating loss in its latest fiscal quarter.

Tinder CEO Renate Nyborg is leaving the company just a year after taking office.  Pictured above is her announcement of her departure from LinkedIn.

Tinder CEO Renate Nyborg is leaving the company just a year after taking office. Pictured above is her announcement of her departure from LinkedIn.

Bernard Kim, CEO of Match Group, Tinder’s parent company, praised the way this metaverse technology has been incorporated into some of the company’s non-Tinder apps, but also noted “uncertainty” about what the much-touted metaverse actually means. caution is needed.

“I believe that getting to know the metaverse is important to attracting the next generation of users, and Hyperconnect is driving innovation in this area,” Kim wrote in a note to shareholders Tuesday.

“However, given the uncertainty about the final contours of the Metaverse and what will and will not work, as well as the more complex operating environment, I have instructed the Hyperconnect team to iterate but not invest heavily in the Metaverse at this time.

What is the metaverse?

The “Metaverse” is a set of virtual spaces where you can play, work, and connect with other people who are not in the same physical space as you.

Meta founder Mark Zuckerberg was a leading proponent of the concept, which is seen as the future of the Internet and blurs the lines between physical and digital.

“You’ll be able to hang out with friends, work, play, study, shop, create, and more,” Meta said.

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

While Meta is leading the way on the metaverse, she explained that it’s not the only product a single company can create.

“Like the Internet, the metaverse exists whether Facebook is there or not,” the post reads.

“And it won’t be built overnight. Many of these products will only be fully implemented in the next 10-15 years.”

“We will continue to carefully evaluate this space and consider moving forward at an appropriate time when we have more clarity on the overall opportunity and feel like we have a service that has every chance of success.”

The financial loss is particularly surprising as Kim boasted of significant revenue and user base growth across various Match platforms including 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 existing users than new ones.

The expensive purchase of Hyperconnect pulled the company down further, despite allegedly helping Match enter the supposedly lucrative Asia-Pacific market.

“There is no doubt that the purchase of Hyperconnect when the world was closed due to COVID slowed down integration and our ability to work together to drive their growth,” admitted Kim.

Just a few paragraphs later, Kim announced that at least one match was not made in heaven. Tinder CEO Renate Nyborg is leaving the company just a year after taking over as CEO.

“I have loved every moment of the last two years of working with the INCREDIBLE team on the magic of human connection,” Nyborg said in a LinkedIn post.

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

“I loved… working with an INCREDIBLE team on the magic of human connection,” said Renate Nyborg (see above) in a LinkedIn post.

“I loved… working with an INCREDIBLE team on the magic of human connection,” said Renate Nyborg (see above) in a LinkedIn post.

Match’s reluctance to fully interact with the metaverse is just the latest sign that not all is fun in the virtual world.

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

In a lengthy video, he laid out his goal to turn the social media platform into a full-blown virtual world that would exist alongside and intersect with the physical world – eventually becoming a space for up to one billion people.

But just last week, that grandiose vision ran into a serious problem. In the earnings call, Zuckerberg said there could be layoffs after revenue fell for the first time in the company’s history and was forecast to fall further in the next fiscal quarter.