Dating app Tinder has parted ways with CEO Renate Nyborg after announcing disappointing financial results, which erased a fifth of its market value. The app's parent company revealed the departure of its CEO, who served the company for less than a year. It also announced it was shelving plans to launch a virtual curreny called Tinder Coins, which th app users can spend on the app.
It came as Match, which also owns OkCupid, Hinge and Plenty of Fish, divulged that it expects sales in the three months to the end of September to be between $790m to $800m.
Disappointing Fimancial Results Led to Tinder CEO Exit
Match Group CEO Bernard Kim revealed to shareholders that Nyborg, who also met her husband on Tinder, was leaving the company in a single sentence. Nyborg was the Tinder's first female CEO and previously led Tinder's efforts in Europe, the Middle East, and Africa. Kim did not disclose the reason why Nyborg was stepping down, he emphasized that Tinder "has not been able to realize the monetization success that we typically deliver" in the preceding quarters.
Mr Kim will fill up the role on an interim basis as the company searches for a permanent chief executive for Tinder.
Kim stated that Tinder, had been performing below expectations for the second half of the year.
Current revenue growth expectations for the second half of the 2022, he said, had been "below original expectations as a result of disappointing execution," Kim said. "We need to do more to excite our user base," he added.
In response to Tinder's floundering performance, Kim revealed changes to the Tinder management team, including a new COO, chief product officer, chief marketing officer, and chief technology officer from within the company. Kim himself is a new hire, joining Tinder after a stint with Zynga in late May.
Read Also: Tinder Use Can Get You Hooked, Study Says
As for Tinder Coins, Kim said Match Group will "take a step back and re-examine that initiative." The digital coins were originally conceived as an way to have users stay remain "active" and "up-to-date" on the app, an Engadget report said. As Tinder would gift these users with coins as a reward, which they could then use to buy paid app features, such as Super Likes and Boosts. Of course, these coins would also be for sale if users have been too lazy to earn them.
Match Puts Halt on Metaverse Dating, Willl Enter 'At Appropriate Time'
Kim also announced it was halting initiatives on dating in the metaverse, which had been under development in partnership with Hyperconnect, a social video technology company Tinder acquired in 2021. Match saw dating in the metaverse as having singles mingling in a "virtual club" through their avatars.
Kim added that said Tinder will continue watching the metaverse space carefully and would consider moving forward in the space at the "appropriate time."
Related Article: Tinder's Sean Rad: AI And Tinder Will Change How People Will Date
