Grindr Inc. (NYSE:GRND) Q1 2024 Earnings Call Transcript

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The second one, is around matching and creating better connections between users, right? We have an incredible amount of information about our users. As you probably know, our users generated 121 billion chat messages last year. That’s an incredible amount of information about what they like, what they don’t like, what they’re into and using all that as a way to understand the use of better and potentially create good matches between users, we think it’s a huge opportunity. So that’s the second kind of component. And then thirdly is, application health or quality to trust and safety is another big component. And there we’re already actually doing a bunch of things using AI, and we think we can improve as an application like us, a social media app or dating app, there is behavior that is not allowed right?

It’s against our community guidelines or it is illegal. The more we can do to that type of behavior before it even happens or before anyone reports it, and get it when we move from the product and from the community, the better we are, right? Because that means, we’re creating a better experience for users. So actually using quite a bit of AI already. We have done I think a really good job in proactively finding that behavior and getting it removed to the point where our user reports, on illegal activity in the app or activity against the community guidelines has dropped 50% over the last three years. And that’s because we’re actually able to get ahead of it, and get it off the app before it becomes a problem for anybody. And so, that’s the third bucket of where we think opportunity is significant with it.

Rohit Kulkarni: Okay. Fantastic. I guess then a question on weeklies versus monthly. I guess just philosophically how do you kind of think about the lifetime value of a customer, who’s coming in for the first time and opting in for a weekly or how does the funnel progression, now that you probably have six to nine months’ worth of data has been, and maybe talk to over a steady state what proportion of your users you think are free versus weekly versus monthly going forward?

Vanna Krantz: Thanks for the question, Rohit. Yes, we have been spending a lot of time now that we’ve got enough data to analyze our weekly and our monthly behavior. And as you know, we have increased our paying users, we’ve increased payer penetration and we’ve increased ARPU. And so now it’s time to look at LTV we can do a nice analysis of LTV for the year. And I think there’s one thing that I’d like to share with everyone, with respect to our usual behavior and that is that our app, offers immediacy to our community. And therefore, the weekly proposition has really followed that intent and major use case. And so we have not found the level of cannibalization that I might have expected, with respect to weekly and monthly. And in fact, a reactivation rate which we’ve been absolutely able to track now over the one-year period is extremely healthy.

And so our ecosystem has remained extremely healthy, and more available to more users. And so the LTVs are relatively close. We don’t provide that data publicly. But what I can tell you is, there is a cohort or a subset of our users that enjoy the weekly product, and they tend to dip in and dip out yet, we also have a different cohort of users that tend to stay in the product for longer. However, given the pricing, the LTVs are generally in the same Zip code. So we are pleased, with our overall ecosystem. However, you also might notice at times, weekends versus the weekdays and things like that it can become a little choppier now, but overall very healthy. Does that answer your question?

Rohit Kulkarni: Yes, absolutely. Thank you. Thank you for the color. And again, like looking forward to the Investor Day. I hope to learn more about product and team and good luck with that.

Vanna Krantz: So just one quick correction if there’s no more questions. One we actually did begin rolling out Unlimited in February and it was fully rolled out in the quarter. And so just wanted to make that correction. [indiscernible] Thank you and I’ll pass the line back to the operator now.

Operator: Thank you. This does conclude today’s program. Thank you for your participation. You may disconnect at any time and have a wonderful evening.

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