Dating giant Match Group announced a series of changes to Tinder’s management team alongside the announcement of disappointing second-quarter earnings on Tuesday. Notably, Tinder CEO Renate Nyborg will be departing the company after less than a year in the top job. Match Group is also killing Tinder’s plans to adopt new technology, like virtual currencies and metaverse-based dating.
In a shareholder letter, Match Group CEO Bernard Kim expressed frustration with Tinder’s current performance, noting the popular dating app has not been able to realize its typical monetization success over the past few quarters and is failing to meet the company’s original expectations for revenue growth for the latter half of 2022.
Kim chalked up Tinder’s troubles to “disappointing execution on several optimizations and new product initiatives,” but added that Tinder’s product execution and velocity could still be improved.
Alongside the departure of Nyborg, Tinder will have a reorganized management team that also includes:
Faye Iosotaluno, formerly Match Group’s chief strategy officer, as Tinder’s COO
Mark van Ryswyk, as Tinder’s chief product officer. Ryswyk is an experienced gaming executive who joined the company in June.
Melissa Hobley, formerly OkCupid’s CMO, as Tinder’s chief marketing officer
Tom Jacques, as Tinder’s chief technology officer. An 11-year Match Group veteran, he has been Tinder’s CTO for the last five years.
Advisor Amarnath Thombre. The current CEO of Match Group Americas and 15-year Match Group veteran will advise the Tinder management team on product roadmap and growth.
Kim said he will oversee the team while Tinder searches for a permanent CEO.
Reading between the lines, there was also a hint that the younger generation of users may have lost its appetite for dating apps like Tinder — a culture shift which can’t just be chalked up to lingering pandemic impacts. The letter notes that people have moved past COVID lockdowns and re-entered “a more normal way of life,” but their willingness to try online dating apps for the first time hasn’t returned to pre-pandemic levels.
Instead, Match Group reports that its highest engagement is now coming from existing users.
As part of Tinder’s revamp, its “dating metaverse” ambitions have been dramatically scaled back. The company had been planning to leverage its Hyperconnect acquisition to create a new form of online dating in a virtual environment, but those ideas are on pause as Match Group now has to address broader issues.
“…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,” wrote Kim. “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.”
Also on the chopping block was virtual currency, which Match Group was experimenting with as Tinder Coins. (While Match Group hadn’t gotten so far as to announce blockchain integrations for the coins, the virtual currency’s role in its broader metaverse plans suggested crypto could be part of its long-term roadmap.)
“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,” said Kim. “We also intend to do more thinking about virtual goods to ensure that they can be a real driver for Tinder’s next leg of growth and help us unlock the untapped power users on the platform,” he added.
The company says it’s still planning to develop features to make Tinder more appealing to women, including a subscription-based package that will provide “curated recommendations” as well as features designed to get friends involved in introductions. Across other products, it will also look to new features, like livestreaming video, to drive adoption.
Overall, Match posted Q2 2022 revenue of $795 million, up 12% year-over-year, but below average Wall Street estimates of $804.22 million. It also posted a loss of $31.86 million, or 11 cents per share, versus 46 cents in the year-ago quarter. Analysts were expecting earnings of 57 cents per share. Match said its operating loss was $10 million, impacted by a $217 million write-down of intangibles related to lower financial outlooks for its Azar and Hakuna apps from Hyperconnect.
Match Group paying users were up 10% year-over-year to 16.4 million. Tinder direct revenue grew 13% from the prior quarters, driven by 14% growth to 10.9 million paying users.
Image Credits: Match Group
Estimates for the quarter ahead weren’t good either, with Match Group forecasting flat Q3 growth to $790 million to $800 million in revenue, below estimates of $883 million. Tinder revenue growth is expected to be in the “mid single digits.”
Shares dropped more than 20% in after-hours trading on the news.
Updated 8/2/22, 6:00 pm ET to clarify Tinder had not formally announced blockchain integrations for Tinder’s virtual currency.
Tinder to kill virtual currency, metaverse plans amid Match Group earnings loss; Tinder loses its CEO
Архив метки: CEO
Cozy houseplants and self-care: How one startup is reimagining mobile gameplay as a healing activity
Mobile well-being apps topped 1.2 billion downloads last year, while leading meditation app Calm alone pulled in $118.2 million in revenue, data from Sensor Tower indicates. That may leave some to believe the digital well-being market is essentially solved, but a new startup, Lumi Interactive, believes the opposite is true. The Melbourne-based, women-led company has identified a under-explored niche in the mobile market that involves translating offline, self-care activities into games as a means of reducing our collective stress and anxiety.
While most mobile games focus on having users compete against one another or achieve some sort of goal, the startup’s forthcoming title Kinder World’s main aim is to help users relax. It accomplishes this through short, snack-sized sessions where it asks players to care for virtual houseplants by taking care of themselves in the real world.
In the game, players are encouraged to perform simple acts of kindness — like practicing daily gratitude, for example — in order to improve their own well-being and that of the game’s wider community. The game features a variety of non-stressful activities — like watering houseplants, interacting with animal neighbors and decorating a cozy room with plants, among other things.
Image Credits: Lumi Interactive
In some ways, this recalls how many of us spent months in creative play during the height of the pandemic engaged with games like Animal Crossing, the popular Nintendo game whose pressure-free environment helped many relax and pass the time under COVID-19 lockdowns. In Animal Crossing, players designed indoor and outdoor spaces, shopped for outfits and home accessories, planted flowers and chitchatted with animal pals.
As it turns out, the pandemic played a big role in Lumi Interactive’s founding, too, the company told TechCrunch.
“In late 2020, we were a small team of three, exhausted by the pandemic and a hard year for the business,” explains Lumi Interactive co-founder and CEO Lauren Clinnick. “We decided to take two weeks to refresh ourselves with a game jam to make something totally new, and mental well-being was very much on our minds. We’d also all become closer to nature over the harsh Melbourne lockdowns and wanted to examine why houseplants had become part of a self-care routine for so many people we knew,” she says.
That gave rise to a question as to whether houseplant care could be brought into the digital world, and the team prototyped Kinder World as a result.
“It had a spark of something special after just two weeks, and the concept tested very strongly with our target audience straight away,” Clinnick says.
Both Clinnick and Lumi Interactive co-founder Christina Chen had a background in gaming before founding their new company and had known each other for nearly a decade. Clinnick first entered the games industry as a marketing consultant for games like Crossy Road, co-founded a boutique games marketing agency, then moved into direct games development. Chen, meanwhile, had a technical background that saw her working on payments at Xbox Live and later as a senior producer at PopCap in Shanghai before co-founding games publisher Surprise Attack (now known as Fellow Traveller).
The duo had bonded over their mutual love for data, underserved player communities and the new opportunities they believed were still on the horizon for mobile gaming, Clinnick says.
Image Credits: Lumi Interactive
As the team investigated the idea for a more collaborative, self-care-focused title, they discovered that many of today’s consumers weren’t finding satisfaction with mainstream well-being apps.
“When we actually interviewed users — especially Gen Z and millennial women and nonbinary folks — we found that 97% had dropped out of apps like Headspace and Calm, citing they ‘felt like work’ or became another thing for them to fail at,” says Clinnick. “Instead they often have fragmented relaxation hobbies such as gaming, houseplants, Squishmallow collecting, crafting and ASMR. These are mostly distraction activities that helped their short-term anxiety but didn’t help them build important resilience skills in the long term,” she says.
Lumi Interactive responded to this feedback by making sure their game was designed in a way where you couldn’t fail, no matter how you played. For instance, all the activities in the game are optional and the virtual houseplants will never die.
“We’ve consciously made these choices to prevent a burdened feeling for players,” says Clinnick.
In keeping with a strategy to co-develop the game along with their community, the startup turned to TikTok to test various elements, like game design, the art style and to find out what interested their users.
Now a full-time team of 12 and growing, Lumi Interactive closed on $6.75 million in seed funding in March in a round led by a16z — which it’s officially announcing this week. Other investors include 1Up Ventures, Galileo Ventures, Eric Seufert’s Heracles Capital and Double Loop Games’ co-founder and CEO, Emily Greer.
The startup is using the funds to grow the team so it can further develop the larger concept it calls “crowd healing,” informed by Lumi Interactive’s full-time well-being researcher, Dr. Hannah Gunderman, Ph.D. The company believes the idea — which references sharing kindness with others through self-care style gameplay — could become a new gaming category.
Lumi Interactive, of course, is not the first to imagine games that aren’t goal-focused. There are games that are interactive stories or graphic novels or other indie projects, but they often still have the gamer play through the experience to come to a conclusion. Kinder World, meanwhile, would be something players come back to whenever they need to relax, which is why the company is considering a subscription offering, in addition to standard in-app purchases. It’s also exploring online-offline experiences with physical items that could unlock certain game benefits or activities.
Kinder World is currently in alpha testing on iOS and Android and aims for a full release later in 2022.
Cozy houseplants and self-care: How one startup is reimagining mobile gameplay as a healing activity
Game studio HiDef partners with Snap to develop a Bitmoji dance social mobile game
A game studio, HiDef, announced today that it is teaming up with camera company Snap Inc. to develop an off-platform Bitmoji-based dance and music social game. The game will leverage Snap’s augmented reality tech as well as Bitmoji, the personalized cartoon avatar maker. Bitmoji joined the Snap family over five years ago, and today over a billion avatars have been created.
The Bitmoji-based dance expression game will be a standalone title and is expected to launch in 2023. Snap will also support HiDef’s upcoming flagship dance party game IP, which aims to host a dance party for billions across the globe.
Pany Haritatos, head of Snap Games, said in a statement:
We’re working with HiDef as a marquee partner because of their leadership in the gaming and entertainment space, as well as our shared goal of engaging audiences through creative expression. Games have already captured the interest of 320 million Snapchatters and we are excited to team up with HiDef on this exciting new music and dance game.
“There are over 1 billion Bitmoji avatars just waiting to dance! We’re honored Snap chose HiDef to bring their community onto the virtual dance floor. Our game will offer a new place for Snapchat’s audience to express themselves creatively through music and dance,” said Chip Lange, CEO at HiDef, Inc.
HiDef was co-founded in 2019 by Jace Hall, Anthony Castoro and Rick Fox, as well as Chief Impact Officer David Washington, to build new gaming experiences via a proprietary technology platform.
Game studio HiDef partners with Snap to develop a Bitmoji dance social mobile game
Daily Crunch: TikTok’s CEO resigns
Turmoil continues at TikTok, Salesforce lays off 1,000 people and Warby Parker is now valued at $3 billion. This is your Daily Crunch for August 27, 2020.
The big story: TikTok’s CEO resigns
Kevin Mayer, the former Disney executive who joined TikTok as CEO just over 100 days ago, announced yesterday that he’s resigning. While Mayer was likely brought on to reassure U.S. legislators about the app’s Chinese owners, it seems he wasn’t expecting this level of conflict, with President Donald Trump signing an executive order that would ban TikTok in the U.S. unless it’s sold to another company.
“We appreciate that the political dynamics of the last few months have significantly changed what the scope of Kevin’s role would be going forward, and fully respect his decision,” a TikTok spokesperson said in a statement. “We thank him for his time at the company and wish him well.”
As for which company might acquire TikTok, Walmart has confirmed that it’s interested in teaming up with Microsoft to acquire the popular video app.
The tech giants
Salesforce confirms it’s laying off around 1,000 people in spite of monster quarter — Salesforce says it’s “reallocating resources to position the company for continued growth.”
Google Assistant app now uses your searches to make personalized recommendations — Those recommendations could include podcasts, restaurants, recipes and more.
Facebook isn’t happy about Apple’s upcoming ad tracking restrictions — The company says Audience Network revenue could decline by more than 50%.
Startups, funding and venture capital
Warby Parker, valued at $3 billion, raises $245 million in funding — The eyewear startup has launched a telehealth service for New York customers, allowing them to extend an existing glasses or contacts prescription.
Instacart faces lawsuit from DC attorney general over ‘deceptive’ service fees — The suit alleges that Instacart misled customers into thinking the 10% service fee was a tip for the delivery person.
Narrative raises $8.5 million as it launches a new data marketplace — The goal is to make buying data as easy as buying something on Amazon.
Advice and analysis from Extra Crunch
Alexa von Tobel: Eliminating risk is the key to building a startup during an economic downturn — Von Tobel says that one of the most important exercises in forming LearnVest was writing out a business plan.
To reach scale, Juni Learning is building a full-stack edtech experience — The startup’s path to $10 million in annual recurring revenue is inspired by Peloton, not Kumon.
What can growth marketers learn from lean product development? — Andrea Fryrear argues that marketers should begin creating minimum viable campaigns.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
A faster, easier, cheaper way of going public — The latest episode of Equity discusses direct listings and SPACs.
Here’s how you can get a second shot at Startup Battlefield — Your second chance comes in the form of two Wild Card entries for the upcoming Battlefield at Disrupt.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.
Extra Crunch Live: Join Verizon CEO Hans Vestberg for a live Q&A May 26 at 2pm ET/11am PT
Hans Vestberg, CEO of Verizon Communications, is a busy man. He’s also a business man. He’s a busy businessman, but has graciously made time to join us for an episode of Extra Crunch Live, our ongoing speaker series for Extra Crunch members.
We’re thrilled to have Vestberg as a guest on the show! The episode will air on May 26 at 2pm ET/11am PT.
Full disclosure: Verizon is the parent company to TechCrunch, which means that Vestberg is our boss’s boss’s boss’s boss.
Vestberg was previously CEO at Ericsson and joined Verizon as chief technology officer and EVP of network and technology in April of 2017. In June of 2018, the company announced that Vestberg would succeed Lowell McAdams as CEO of Verizon Communications. The promotion was made official that August.
Vestberg is unlike some of our previous guests on Extra Crunch Live — VCs like Kirsten Green, Roelof Botha and Charles Hudson and entrepreneurs like Mark Cuban. Vestberg is an operator at the helm of one of the world’s biggest corporations, and, as such, provides a unique perspective on adaptation strategies during the coronavirus pandemic.
Not only can attendees plan to hear about how Verizon is thinking both short and long-term about the effects of this pandemic on business, but also about how things are changing internally at the company, from re-opening offices to keeping morale high.
Vestberg leads a company with thousands of employees and can help founders understand how to manage a company at scale, particularly during a time when decisions are being made quickly and the stakes are high.
We’re also interested in talking to Vestberg about the company’s 5G rollout. 5G technology has huge implications for startups, especially as video conferencing and high-bandwidth communication formats become more popular in the midst of physical distancing.
Oh, another important thing! We’re not going to be the only ones asking questions. Extra Crunch members can also ask their questions directly in the Zoom call. So make sure you come prepared! If you’re not already a member, you can join Extra Crunch here.
Again, this episode of Extra Crunch Live with Hans Vestberg goes down on May 26 at 2pm ET/11am PT. You can find the full details below the jump.
Extra Crunch Live: Join Verizon CEO Hans Vestberg for a live Q&A May 26 at 2pm ET/11am PT