The online dating giant, which funded in 2009 and operates the largest portfolio of dating apps, was originally in talks to have its leading brand Tinder venture into the Metaverse.
Following a disappointing set of earnings in the last quarter, Match Group have announced they will be scaling back after acquiring Hyperconnect last year, a company which specialises in video, AI and augmented reality.
In an earnings release, Bernard Kim, CEO of Match Group, wrote: “Given uncertainty about the ultimate contours of the metaverse and what will or won’t work, as well as the more challenging operating environment, I’ve instructed the Hyperconnect team to iterate but not invest heavily in metaverse at this time.
“We’ll continue to evaluate this space carefully, and we will consider moving forward at the appropriate time when we have more clarity on the overall opportunity and feel we have a service that is well-positioned to succeed.”
According to Match Group, the acquisition of Hyperconnect contributed to a $10 million loss in Q2 2022 compared to the second quarter of 2021.
He added: “Tinder’s current revenue growth expectations for the second half of the year are below our original expectations as a result of disappointing execution on several optimizations and new product initiatives,” the CEO said.
Tinder also decided to scrap plans for in-app coins after seeing mixed results from the soft launch.
He wrote: “After seeing mixed results from testing Tinder Coins, we’ve decided to take a step back and re-examine that initiative so that it can more effectively contribute to Tinder’s revenue,”