Match Group, a dating app maker, announced during Q2 earnings that it will provide audio and video chat including group live video and other livestreaming technologies for several brands in the company's portfolios over the next 12-24 months. These developments will be powered in part by Hyperconnect, the social network company that bought the Korean app maker this year for $1.73 billion.Match Group has remained relatively silent about its plans for Hyperconnects tech and its long-term strategy. Tinder was however briefly seen testing Tinder Mixer, a group video chat feature that Tinder created earlier in the summer. This move seemed to indicate some exploration of social-discovery features following the Hyperconnect deal. Tinder said at the time that the company did not intend to bring this product to market within the next year.Match Group provided some insight into Hyperconnect's future on Tuesday's earnings after the official closing of the acquisitions in June.Shar Dubey (CEO of Match Group), who took over the top job in January 2013, said that the company is excited by the possibility to integrate technologies developed by Hyperconnect into existing Match-owned dating apps.This includes, she said, AR features, self-expression tools, conversational AI and a number of what we would consider metaverse elements, which have the element to transform the online meeting and getting-to-know-each-other process, Dubey explained, without offering further specific details about how the products would work or which apps would receive these enhancements.Many of these technologies were developed in Hyperconnects lab, Hyper X, the same incubator whose first product was Azar, now one of the company's flagship apps. Match Group also acquired Azar.Dubey noted, however, that work was already being done at the company to integrate these technologies.Match Group stated that it plans to integrate at least two brands with Hyperconnect technologies by year-end 2022. Hyperconnect capabilities will be implemented by a number of brands before the year-end 2022.Match's goal is to change the way people view online dating.Online dating has been relatively static to date. Apps focus mainly on photos and profiles, then offer some type of matching technique, whether it's swipes, quizzes, or other. Tinder, in more recent years, began to break out of that mold as it innovated with an array of different experiences, like its choose-your-own-adventure in-app video series, Swipe Night, video profiles, instant chat features (via Tinders product, Hot Takes) and others. It still lacks some of the real-time elements people experience when they meet in person.Match believes that Hyperconnect can improve online dating experiences in this area.Dubey stated that online dating's holy grail has been the ability to bridge the gap between people who chat online and those who meet in person. These technologies will allow us to create experiences that help people decide if they have the elusive chemistry. Our ultimate goal is to make people never go on a bad first date ever again.Match Groups Hyperconnect deal is positioned as more interesting by Match Groups because of the innovation it brings, not just the standalone apps. This comes at a moment when the revenue expectations for those apps are not being met.Match Group stated that it expected Hyperconnect to generate revenue of $125 to $135 millions in the second half 2021. This outlook is not without risk, but the company acknowledges some financial pullback. This was largely due to COVID effects, especially in the Asia-Pacific region, where Hyperconnects apps are located. The Hyperconnects growth was also impacted by a crowded market and Apple's changes to IDFA, which have impacted a variety of apps, including Facebook.Match believes that Hyperconnect will continue to grow its revenue in 2021. However, the company stated that these technology integrations within the Match Group portfolio are a greater priority.Match Group reported mixed earnings for Q1. Revenue was $707.8million, higher than analyst estimates. However, earnings per share were 46 cents. This is below the projections of 49c a share. The number of customers who were paid increased by 15% to 15,000,000, compared with 13 million the previous quarter. Following the earnings announcement, shares fell by 7% Wednesday morning.
