By Denny Jacob
Grindr saw revenue surge in its latest quarter and announced a $500 million buyback program, a bright spot in the online dating space as competitors contend with more challenging conditions.
The dating app, known for its user base of mostly gay and bisexual men, has seen its stock rise as it's pushed to meet users' interest in long-term dating options and announced new offerings, including plans to release an artificial intelligence-powered "wingman". The two-year share repurchase program will likely bolster Grindr's perception among investors further.
"We feel like the best thing to do with it right now is to return it back to shareholders," Chief Executive George Arison said in an interview.
Shares of Grindr have more than doubled in the last year.
A key driver for Grindr will be its product roadmap. The company in January detailed new offerings being tested that will give users personalized recommendations and information on others with similar interests.
The product-led strategy has given some on Wall Street greater confidence in Grindr's prospects. Analysts at TD Cowen said in a research note ahead of Wednesday's results they expect further growth in 2025 driven by a ramping product portfolio, as well as gains in its user base and paying users.
Grindr's approach stands in contrast to current efforts by Match Group, owner of dating apps Tinder and Hinge, and Bumble. The companies' efforts have increasingly begun to overlap with each other, with Grindr catering more to users interested in finding a long-term partner while Match in 2023 began to go after gay, bisexual and queer men with the launch of Archer.
Match and Bumble have recently announced executive changes as they look to move past a period of slower growth that has raised questions about whether online dating has peaked.
Grindr's latest results may alleviate some concerns about the broader landscape. The company saw revenue grow 35% to $97.6 million from $72.1 million, beating estimates of $95.3 million. Its quarterly loss widened to $123.9 million from $44.8 million, while Wall Street expected net income of $15.3 million.
Grindr also guided for revenue growth in 2025 to be upwards of 24%.
"A lot of what we've been really focused on is earning credibility from the investors and showing ourselves as a grown-up, mature company that can function well in the public markets," said Arison.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
March 05, 2025 16:06 ET (21:06 GMT)
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