Shares of Grindr Inc. (NYSE: GRND) experienced a sharp 18.11% decline 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 reported quarterly earnings of $0.08 per share, missing the consensus estimate of $0.11 by 27.27%. Despite the miss, this figure represents a significant improvement from the $0.13 loss per share reported in the same period last year. Revenue for the quarter came in at $104.22 million, slightly below the analyst projection of $105.11 million, but still marking a 26.57% increase from the $82.34 million reported in the previous year.
While Grindr demonstrated year-over-year growth in both earnings and revenue, the market's severe reaction suggests that investors had higher expectations for the company's performance. The substantial after-hours drop indicates that Wall Street is particularly sensitive to any signs of slowing growth or missed targets in the competitive online dating sector. As the market digests this information, investors will be closely watching for any guidance or commentary from Grindr's management regarding future growth prospects and strategies to meet or exceed expectations in coming quarters.
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