We’re getting a closer look at the business of gay social network Grindr, thanks to documents that leaked following the hack of extra-marital affairs dating site Ashley Madison.
Grindr is projecting revenues for 2015 of $US38.1 million from 3.8 million monthly active users.
The computer systems of Ashley Madison’s parent company Avid Life Media were breached in July 2015, and in August the hacker or hackers, who call themselves The Impact Team, began to leak internal company data online. This includes compromising personal information on more than 30 million users of the site, as well as sensitive documents and the emails of CEO Noel Biderman.
Included within Biderman’s email correspondence is a “Management Presentation” for gay networking app Grindr, created in June 2015. Business Insider has reached out to Grindr for comment on the deck and will reply when it responds, but the document appears to be legitimate.
Avid Life Media is in possession of the document because at one point the company was considering investing in or acquiring Tinder, although it ultimately decided against it because of the price-tag.
The document provides a window into the financials of the private company, which launched in 2009 and has never taken on outside funding.”Since Grindr’s inception 6 years ago,” it says, “society has experienced much wider mainstream acceptance of gay culture on a global basis. Grindr has not only benefited from this world-changing trend but has also been an essential part of transforming the culture itself.”
Accordingly, the company has seen healthy growth over the last few years, with revenues rising to $US31.8 million, up from $US15.8 million in 2012 in 2014, with estimated revenues of $US38.1 million in 2015. By the end of 2018, it predicts annual revenues of as much as $US77 million — more than twice that of 2014.
By a considerable margin, its single biggest audience is USA, with just under 1.3 million monthly active users (MAUs). This is followed by the UK (377,000), Brazil (248,000), and France (185,000). Overall, it has 10.5 million global users, of which 3.8 million are MAUs. MAUs are forecast to grow by more than 40% in 2015.
Notably, Grindr claims that the average daily time its users spend on the app is higher than other social networks. It claims 54 minutes daily, compared to Facebook’s 42.1 minutes, Tumblr’s 34.2 minutes, and Instagram’s 21.2 minutes. For Tinder, a dating app with similar functionality which also has heterosexual users, that figure is pegged at just 14.9 minutes daily. (The data comes via a report from eMarketer.)
Here are the relevant slides from the presentation:
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