By Sabela Ojea
Grindr expects slower revenue growth this year after seeing its average monthly active user base decline in the fourth quarter.
The stock retreated 7.4% to $17.30 in post-market trading on Wednesday. Through the close the company's share price has more than doubled in the last 52 weeks.
The 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. Analysts had expected revenue growth of 23%, according to FactSet.
Grindr's outlook followed a decline in active users and the revenue the company gets per every paying subscriber.
The company reported 14.2 million average monthly users in the fourth quarter, down from 14.6 million in the third quarter, as well $22.53 in average direct revenue per paying user, down from the $23.07 average seen in the prior period.
Grindr, whose paying user base increased 15% to 1.11 million at the end of last year, didn't disclose details about how this key metric for the company will perform this year, sparking concerns among investors.
During the earnings call, Chief Financial Officer Vanna Krantz said that investors "should see some payer growth this year, as well as average direct revenue per paying user."
Krantz's comment came less than two months after Grindr unveiled new products to boost its monetization.
"We are still again in very early stages of monetizing this product," Chief Executive George Arison said, adding that the company will work on its pricing strategy in the next 24 months.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
March 05, 2025 19:06 ET (00:06 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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