Shares of GRINDR INC (GRND), the popular dating app known for its user base of mostly gay and bisexual men, plummeted 11.40% in the pre-market trading session on Thursday. The sharp decline came after the company 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 guided for revenue growth of 28% in 2025, falling short of analysts' expectations of around 33%. The company's weaker growth outlook followed a decline in its average monthly active user base, which dropped to 14.2 million in the fourth quarter from 14.6 million in the third quarter. Additionally, GRINDR reported a decrease in average direct revenue per paying user, falling to $22.53 from $23.07 in the prior period.
The disappointing guidance and weakening user metrics raised concerns among investors about the company's ability to sustain its growth momentum. GRINDR's stock had already taken a hit on Wednesday, falling 7.4% in after-hours trading following the release of its fourth-quarter earnings report, which missed analysts' estimates.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.