Shares of Grindr Inc. (NYSE: GRND) experienced a significant 24-hour plunge of 12.80% in after-hours trading on Thursday, following the release of the company's second-quarter earnings report that fell short of analyst expectations. The LGBTQ+ dating app operator's financial performance disappointed investors, leading to a sharp sell-off.

Grindr reported quarterly earnings of $0.08 per share, missing the analyst consensus estimate of $0.11 by 27.27%. Despite representing a substantial improvement from the $0.13 loss per share reported in the same period last year, the earnings miss raised concerns among investors. Revenue for the quarter came in at $104.22 million, slightly below the analyst projection of $105.11 million, though still marking a 26.57% increase from the $82.34 million reported in the previous year.

The company's user growth also fell short of expectations, with average monthly active users growing 6% to 14.9 million, while analysts had anticipated 15.1 million. Despite these misses, Grindr maintained its guidance for 26% or greater revenue growth for the year. CEO George Arison emphasized the company's focus on AI innovation and its unique assets as factors in maintaining a competitive advantage. However, the market's severe reaction suggests that investors had higher expectations for the company's performance in the competitive online dating sector.