Match Group Adds Audio & Video Chat to Dating Apps

Match Group to Integrate Hyperconnect Technologies Across Dating Apps

Match Group, the parent company of Tinder, announced during its Q2 earnings call that it will be incorporating audio and video chat functionalities, including group live video and other livestreaming capabilities, into several of its brands over the coming 12 to 24 months.

Hyperconnect Acquisition Fuels Innovation

These advancements will be driven by innovations originating from Hyperconnect, the social networking firm acquired by Match Group earlier this year for $1.73 billion – representing the company’s largest acquisition to date.

Following the acquisition, Match Group maintained a relatively low profile regarding its specific plans for Hyperconnect’s technology and its long-term strategic vision for the operation.

However, Tinder briefly tested a group video chat feature, known as Tinder Mixer, earlier this summer, hinting at an exploration of social discovery features following the Hyperconnect deal.

The company clarified at the time that there were no immediate plans to launch this particular product in the near future.

Insights into Hyperconnect’s Future

Match Group provided further insight into the future of Hyperconnect during Tuesday’s earnings report, subsequent to the official closing of the acquisition in mid-June.

Shar Dubey, CEO of Match Group, expressed the company’s enthusiasm for integrating Hyperconnect’s developed technologies into its existing suite of dating applications.

This integration will encompass features such as AR capabilities, self-expression tools, conversational AI, and elements considered to be part of the “metaverse,” all designed to enhance the online meeting and getting-to-know-each-other process.

Hyper X and Existing Technologies

Many of these technologies were developed within Hyperconnect’s in-house incubator, Hyper X, which is also the origin of Azar, one of the company’s flagship applications that joined Match Group through the acquisition.

Work on integrating these technologies has already commenced within the company, according to Dubey.

Match Group anticipates that at least two of its brands will incorporate technologies from Hyperconnect by the end of the current year, with a number of additional brands implementing these capabilities by the end of 2022.

Transforming the Online Dating Experience

The ultimate goal is to redefine the perception of online dating.

Traditionally, online dating has largely centered around profiles, photos, and matching techniques – be it through swipes, quizzes, or other methods.

Tinder has begun to deviate from this model with innovative experiences like “Swipe Night,” video profiles, and instant chat features (through Tinder’s Hot Takes), but still lacked the spontaneity of real-world interactions.

Bridging the Gap Between Online and Offline

Match Group believes Hyperconnect can address this gap and improve the online dating experience.

Dubey stated that a key challenge in online dating has always been bridging the disconnect between online chatting and in-person meetings.

These technologies aim to help users assess chemistry before committing to a first date, with the vision of eliminating unsatisfactory first dates altogether.

Revenue Outlook and Prioritization

Match Group’s emphasis on Hyperconnect’s innovation, rather than solely its standalone apps, coincides with a period where those apps have not fully met the company’s revenue expectations.

The company projects Hyperconnect to contribute $125 to $135 million in revenue in the second half of 2021, a financial outlook that represents a slight adjustment downward.

This adjustment is attributed to COVID-19 impacts, particularly in the Asia-Pacific region, increased market competition, and Apple’s changes to IDFA, which have affected numerous apps, including social networking platforms like Facebook.

Despite these challenges, Match Group remains optimistic about Hyperconnect’s revenue growth and has designated the integration of its technologies into the broader Match Group portfolio as a “higher priority.”

Q2 Earnings Report

Match Group’s Q1 earnings were mixed, with revenue reaching $707.8 million – exceeding analyst estimates – but earnings per share at 46 cents, falling short of the projected 49 cents.

The number of paying customers increased by 15% to 15 million, up from 13 million in the same quarter of the previous year.

Following the earnings announcement, shares experienced a 7% decline on Wednesday morning.