Shares of Grindr Inc (NYSE:GRND) took a sharp downturn in after-hours trading on Thursday, plummeting 6.71% despite the company raising its fiscal year 2025 guidance. The stock's decline came on the heels of the company's first-quarter earnings report, which presented a mixed bag of results.
Grindr reported quarterly earnings of $0.09 per share, meeting analyst consensus estimates and marking a substantial 280% improvement from the $0.05 per share loss recorded in the same period last year. However, the company's quarterly sales of $93.94 million fell short of analyst expectations of $95.39 million, missing the mark by 1.52%. Despite the miss, it's worth noting that sales still grew by 24.68% compared to the $75.34 million reported in the same quarter of the previous year.
In a seemingly contradictory move, Grindr raised its fiscal year 2025 guidance, projecting revenue growth of 26% or higher. This optimistic outlook, however, failed to offset investor concerns about the sales miss in the current quarter. The after-hours stock plunge suggests that market participants are focusing more on the immediate performance rather than the long-term projections, highlighting the delicate balance between current results and future expectations in investor sentiment.
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