GRINDR Inc. (GRND) shares plunged 10.01% in pre-market trading on Thursday, following a 7.4% drop in after-hours trading on Wednesday. The decline comes after GRINDR provided a disappointing outlook for slower revenue growth in 2025 and reported a decline in its active user base and revenue per user in the fourth quarter of 2024.
GRINDR, the popular dating app known for its user base of mostly gay and bisexual men, guided for revenue growth of 28% in 2025, below the nearly 33% year-over-year increase reported for 2024. The company's outlook fell short of analysts' expectations of 23% revenue growth for the year.
The weaker growth outlook followed a decline in GRINDR's average monthly active user base, which dropped to 14.2 million in the fourth quarter from 14.6 million in the third quarter. Additionally, the company reported a decrease in average direct revenue per paying user, falling to $22.53 from $23.07 in the prior period.
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