Grindr lays out AI plan to launch new services and grow revenue

Grindr (NYSE:GRND) has told investors that it is developing AI-powered tools ‘to help users more easily find long-term relationships’.

In New York, the share soared more than 16%, to trade at $11.88, thanks to upgraded growth plans.

The gay dating app firm, which floated in New York through a SPAC deal in 2022, today held its first investor day in which it detailed a four-year plan that targets 20% to 25% revenue growth.

It is focused on user experience and seeks to drive long-term growth.

“We are improving connection and casual dating, which have always been core to Grindr, through a suite of features called Right Now, while also creating new AI-first features to help users more easily find long-term relationships,” chief executive George Arison said in a statement.

“We know our users want additional functionality to help them better access other types of social connections and to access curated, relevant information and services that will enhance the quality of their lives.”

Supported by AI tools, Grindr plans to develop and launch eight new products for user engagement – around its core use cases which include ‘connectivity, dating, relationships, and the ‘Gayborhood’.

Grindr describes Gayborhood use cases as “new partnership-based digital services typically found in physical gayborhoods”, these partnerships are expected to comprise travel, wellness, and entertainment experiences – and, currently, are outside of the company’s 20-25% revenue growth projections.

“Grindr has built a durable financial model that is delivering strong, reliable growth as we execute on our monetization strategy,” chief financial officer Vanna Krantz added.