Tinder Left-swipes on CEO Renate Nyborg
On Tuesday, Match Group made a series of changes to Tinder’s management team in conjunction with the release of dismal second-quarter profits. Renate Nyborg, the CEO of Tinder, will leave the firm after less than a year in the position. Tinder’s plans to integrate cutting-edge technology, such as virtual currencies and metaverse-based dating, are also being scuttled by Match Group.
Renate Nyborg’s departure was one of several managerial changes revealed by the $20 billion Match Group, which also includes dating platforms like Hinge, Tinder, and Match.com. Renate joined Tinder in 2020 to oversee its European operations, bringing more than 15 years of experience in developing mobile and subscription businesses.
Its shares dropped more than 20% on Tuesday after failing Wall Street estimates for the second quarter and delivering a weaker-than-expected outlook.
“We were unable to achieve the monetization accomplishments that we regularly deliver. Due to the underwhelming implementation of several optimizations and new product initiatives, Tinder’s current revenue growth forecasts for the second half of the year are below our initial expectations,” Match Group chief executive Bernard Kim said in a letter to shareholders.
Match’s total revenue for Q2 2022 was $795 million, up 12% from the previous year, but it fell short of average Wall Street expectations of $804.22 million. A loss of $31.86 million, or 11 cents per share, was also reported, compared to a loss of 46 cents in the same period last year. Analysts anticipated earnings of 57 cents per share. Match reported an operating loss of $10 million, with a $217 million write-down of intangibles as a result of decreased profitability projections for its Hyperconnect developed Azar and Hakuna apps.
“While we search for a permanent Tinder CEO, I will oversee a newly formed team of executives who will manage day-to-day operations and will ensure the Tinder organization is well coordinated, ships great new features at an increased velocity, and delivers on Tinder’s promise,” said Kim.
Renate formerly worked at Headspace, where she created and oversaw the organization’s first global product and marketing team. She led the App Store subscription business in Europe for Apple’s prior four years. In addition, Renate founded Pleo, a human-centered app design studio, and she served as Edelman’s first-ever Global Director of Mobile.
The company claims it still intends to create features to improve Tinder’s appeal to women, such as a subscription-based package that will offer “selected recommendations” and tools for enlisting the help of friends when making encounters. It will also seek new features, like live streaming video, to spur usage across other products.