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.
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