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MinimumBattle1516 t1_iwxtowi wrote

Reply to comment by Monotoca in Don't buy into the Grindr merger - you're just asking to get fucked by fickdichdock

I think the underlying stats and future estimates are pretty hyped.

BUT…if you got into the IPO…sincere congrats…I was in on Pets.com and Kozmo.com and bought a beach on Fire Island!!! If you’re in lock out I do suggest you wrap fingernails w tape.

Back to Grindr…

Global active users…11M… I spoke to a Grinder sales rep to get LA users for a possible ad buy… in the 2nd largest city and gay population in the US…50,000 active users…I was stunned. After 13 years of growth efforts.

Where does their revenue come from…adverting and Grindr Xtra…again after 13 yrs…Candy Crush is their biggest advertiser and most brands will never advertise on an a hook up site. Grindr Xtra is a bust.

Competitive landscape…Grindr is easily displaced by new apps…it’s already happening…just look at Sniffies and gays, et al. are fickle.

And who’s the investment bank behind hyping the stock… the pillar of financial integrity… Goldman Sachs.

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Monotoca t1_iwy2f6s wrote

I've already sold a big portion off today, it's price is unsustainable. I'll consider buying in later after it dumps. But to address your points:

  1. LA has a metro population of 18m. The US has a 3.8% LGBT according to NPR, but I'll be generous and say LA has 6%, half of which are men. Pew research says 55% of gay men have used a dating app before. So now, we're at 18000000* 0.03* 0.55=297000.

So that means Grindr's active base is 16.8% of the total population. 1 in 6. That's a healthy size that still has potential for growth.

  1. Social media and dating apps don't have much competition. Unlike other businesses, quantity > quality. If all the people are on Grindr, you either put up with Grindr's service or go to a better app with no one on it. I doubt anyone can dethrone them as the gay app except Match Group/Bumble.

  2. Why is Grindr Extra a bust from the business perspective? Users may be unhappy, but that's not the core consideration - revenue is. Tinder users are profoundly unhappy too.

  3. Ads have never been a primary revenue source for any dating app. I still see much potential for Grindr, it's one of the only avenues to target messages specifically to LGBT crowds, unlike Tinder, which has a general base. Healthcare ads (e.g. Monkeypox services), queer events, etc. are perfect advertisers.

  4. Goldman Sachs is behind most listings anyway.

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