Grindr (GRND) Raymond James 2024 TMT & Consumer Conference summary

Business overview and market positioning

• Operates as a global social networking and connection app for the LGBTQ community, with a focus on gay and bi men, present in 190 countries and strong brand awareness domestically and internationally.

• Not a swiping app; uses a location-based grid, enabling users to view and chat with up to 100 people for free, with high engagement and 14.7 million monthly active users.

• User segmentation efforts in 2024 target deeper engagement within the gay and bi male cohort, developing tailored value propositions for subgroups.

• Sees itself as the leading platform in its niche, prioritizing being the primary app for users even if they use multiple platforms.

Monetization strategy and product tiers

• Monetization journey is young, with about 15% of revenue from advertising and the rest from subscriptions; product innovation is key to future growth.

• Offers three main tiers: free, XTRA (increased profiles and no ads), and Unlimited (unlimited profiles, Incognito, Viewed Me), with ongoing development of new features.

• Conversion rates from free to paid tiers have steadily increased, aided by better product marketing and feature visibility.

• Maintains a significant free user base to keep the platform vibrant, but expects continued growth in paid conversions as value increases.

User growth and engagement drivers

• Monthly active users (MAUs) are growing at a high single-digit rate year over year, driven by increasing societal openness and younger, more fluid cohorts.

• Enhanced user experience through in-house chat infrastructure and new features like Albums, travel tools, and relationship-focused filters.

• Generational consistency in user preferences, with the app serving as a key platform for coming out and community connection among young adults.