Grindr Inc. Reports Second Quarter 2024 Revenue Growth of 34%, Raises Revenue and Adjusted EBITDA Guidance
Grindr Inc. (NYSE: GRND) reported strong financial results for Q2 2024, with revenue growing 34% to $82 million. The company achieved an operating income of $25 million and an Adjusted EBITDA margin of 45%. Despite a net loss margin of 27%, Grindr raised its full-year 2024 guidance, projecting revenue growth of 27% or higher and an Adjusted EBITDA margin of 42%+.
CEO George Arison attributed the success to continued global user growth and enhanced product offerings. The company aims to further improve user experience and drive performance while progressing towards its vision of building the 'Global Gayborhood in Your Pocket™'.
Grindr Inc. (NYSE: GRND) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con un fatturato in crescita del 34% a 82 milioni di dollari. L'azienda ha registrato un reddito operativo di 25 milioni di dollari e un margine EBITDA rettificato del 45%. Nonostante un margine di perdita netto del 27%, Grindr ha aumentato le previsioni per l'intero anno 2024, prevedendo una crescita del fatturato del 27% o superiore e un margine EBITDA rettificato del 42%+.
Il CEO George Arison ha attribuito il successo a una continua crescita globale degli utenti e a offerte di prodotto migliorate. L'azienda punta a ulteriori miglioramenti dell'esperienza utente e a ottimizzare le performance, progredendo verso la sua visione di costruire il 'Global Gayborhood in Your Pocket™'.
Grindr Inc. (NYSE: GRND) reportó resultados financieros sólidos para el segundo trimestre de 2024, con un crecimiento de ingresos del 34% hasta 82 millones de dólares. La compañía alcanzó un ingreso operativo de 25 millones de dólares y un margen de EBITDA ajustado del 45%. A pesar de un margen de pérdida neta del 27%, Grindr elevó sus proyecciones para el año completo 2024, proyectando un crecimiento de ingresos del 27% o más y un margen de EBITDA ajustado del 42%+.
El CEO George Arison atribuyó el éxito al crecimiento global continuo de usuarios y a mejoras en la oferta de productos. La empresa aspira a seguir mejorando la experiencia del usuario y a impulsar el rendimiento, mientras avanza hacia su visión de construir el 'Global Gayborhood in Your Pocket™'.
Grindr Inc. (NYSE: GRND)는 2024년 2분기에 강력한 재무 성과를 보고했으며, 수익이 34% 증가하여 8,200만 달러에 달했습니다. 이 회사는 영업 이익 2,500만 달러와 조정 EBITDA 마진 45%를 달성했습니다. 27%의 순손실률에도 불구하고, Grindr는 2024년 전체 연도 가이던스를 상향 조정하며 27% 이상의 수익 성장과 조정 EBITDA 마진 42%+를 예측했습니다.
CEO George Arison은 그 성공을 지속적인 글로벌 사용자 성장과 개선된 제품 제공에 있다고 언급했습니다. 이 회사는 사용자 경험을 더욱 개선하고 성과를 끌어올리는 것을 목표로 하며, 'Global Gayborhood in Your Pocket™'이라는 비전을 향해 나아가고 있습니다.
Grindr Inc. (NYSE: GRND) a rapporté de solides résultats financiers pour le deuxième trimestre 2024, avec une augmentation de 34% de son chiffre d'affaires, atteignant 82 millions de dollars. L'entreprise a réalisé un bénéfice d'exploitation de 25 millions de dollars et une marge EBITDA ajustée de 45%. Malgré une marge de perte nette de 27%, Grindr a relevé ses prévisions pour l'ensemble de l'année 2024, projetant une croissance du chiffre d'affaires de 27% ou plus et une marge EBITDA ajustée de 42%+.
Le PDG George Arison a attribué ce succès à la croissance continue des utilisateurs à l'échelle mondiale et à des offres de produits améliorées. L'entreprise vise à améliorer encore l'expérience utilisateur et à stimuler sa performance tout en progressant vers sa vision de construire le 'Global Gayborhood in Your Pocket™'.
Grindr Inc. (NYSE: GRND) hat für das zweite Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit einem Umsatzwachstum von 34% auf 82 Millionen Dollar. Das Unternehmen erzielte ein Betriebsergebnis von 25 Millionen Dollar und eine angepasste EBITDA-Marge von 45%. Trotz einer Nettodurchschnittsverlustquote von 27% hat Grindr seine Prognose für das Gesamtjahr 2024 angehoben und erwartet ein Umsatzwachstum von 27% oder mehr sowie eine angepasste EBITDA-Marge von 42%+.
CEO George Arison führte den Erfolg auf das kontinuierliche globale Nutzerwachstum und verbesserte Produktangebote zurück. Das Unternehmen strebt an, die Benutzererfahrung weiter zu verbessern und die Leistung zu steigern, während es sich auf seine Vision des 'Global Gayborhood in Your Pocket™' zubewegt.
- Revenue growth of 34% year-over-year to $82 million in Q2 2024
- Operating income of $25 million in Q2 2024
- Adjusted EBITDA margin of 45% in Q2 2024
- Raised FY 2024 guidance to 27%+ revenue growth
- Increased FY 2024 Adjusted EBITDA margin guidance to 42%+
- Net loss margin of 27% in Q2 2024
Insights
Grindr's Q2 2024 results showcase impressive 34% revenue growth to
However, the
The emphasis on global user growth and enhanced product offerings suggests Grindr is effectively monetizing its user base. This strategy could lead to sustained revenue growth, but we need to monitor user acquisition costs and churn rates to gauge long-term viability.
Grindr's strong performance indicates a robust demand in the LGBTQ+ dating app market. The "Global Gayborhood in Your Pocket" concept seems to resonate well with users, driving engagement and monetization. This growth outpaces the general dating app market, suggesting Grindr is capturing market share or expanding the overall market size.
The company's focus on enhancing product offerings and improving merchandising likely contributes to higher user spending. This strategy could lead to increased average revenue per user (ARPU) and lifetime value (LTV). However, it's important to monitor competitive pressures and potential market saturation in key regions.
Grindr's global expansion efforts appear successful, but investors should watch for any regulatory challenges or cultural barriers in new markets that could impact future growth rates.
Second Quarter 2024 Revenue of
Net Loss Margin of
Raising FY 2024 Guidance to
“Our outstanding second quarter results reflect continued global user growth as we enhance the value and merchandising of our product offerings,” said George Arison, CEO of Grindr. “Our strong execution increases our confidence in our 2024 outlook, which we have raised today. We are looking forward to delivering more for our users and driving continued performance momentum while progressing toward our long-term vision of building the Global Gayborhood in Your PocketTM.”
Earnings Webcast Information
Grindr will host a live webcast today at 2:00 p.m. Pacific Time to discuss the Company’s second quarter 2024 financial results. The webcast of the conference call can be accessed as follows:
Event: Grindr Second Quarter 2024 Earnings Conference Call
Date: Thursday, August 8, 2024
Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
Live Webcast Site: https://investors.grindr.com/
An archived webcast of the conference call will also be accessible on Grindr’s Investor Relations page, https://investors.grindr.com
Forward Looking Statements
This press release contains statements that may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These forward-looking statements include statements regarding our intentions, beliefs, current expectations or projections concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the markets in which we operate. In some cases, you can identify these forward-looking statements by the use of terminology such as “anticipates,” “approximately,” “believes,” “continues,” “could,” “estimates,” “expects,” “goal,” “intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “seeks,” “should,” “upcoming,” “will” or the negative version of these words or other comparable words or phrases.
The forward-looking statements, including statements regarding our strategic priorities; product roadmap; new plans, products, and features; AI-first features; our long term vision and our annual revenue and adjusted EBITDA guidance for 2024, reflect our current views about our business and future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ materially from those expressed in any forward-looking statement. There are no guarantees that any transactions or events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth in or contemplated by the forward-looking statements:
- our ability to retain existing users and add new users;
- the impact of the regulatory environment and complexities with compliance related to such environment, including maintaining compliance with privacy, data protection, and user safety laws and regulations;
- our ability to address privacy concerns and protect systems and infrastructure from cyber-attacks and prevent unauthorized data access;
- our success in retaining or recruiting our directors, officers, key employees, or other key personnel, and our success in managing any changes in such roles;
- our ability to respond to general economic conditions;
- competition in the dating and social networking products and services industry;
- our ability to adapt to changes in technology and user preferences in a timely and cost-effective manner;
- our ability to successfully adopt generative artificial intelligence processes and algorithms into our daily operations, including by deploying generative artificial intelligence and machine learning into our products and services;
- our dependence on the integrity of third-party systems and infrastructure;
- our ability to protect our intellectual property rights from unauthorized use by third parties;
- whether the concentration of our stock ownership and voting power limits our stockholders’ ability to influence corporate matters; and
- the effects of macroeconomic and geopolitical events on our business, such as health epidemics, pandemics, natural disasters, and wars or other regional conflicts.
In addition, statements that “Grindr believes” or “we believe” and similar statements reflect our beliefs and opinions on the relevant subjects as of the date of any such statement. These statements are based upon information available to us as of the date they are made, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Except to the extent required by applicable law, we are under no obligation (and expressly disclaim any such obligation) to update or revise our forward-looking statements whether as a result of new information, future events, or otherwise. For a further discussion of these and other factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled “Risk Factors.” in annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and you should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements).
Non-GAAP Financial Measures
We use Adjusted EBITDA and Adjusted EBITDA margin, free cash flow, and free cash flow conversion, which are non-GAAP measures, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA adjusts for the impact of items that we do not consider indicative of the operational performance of our business. We define Adjusted EBITDA as net income (loss) excluding income tax provision; interest expense, net; depreciation and amortization; stock-based compensation expense; transaction-related costs; gain (loss) in fair value of warrant liability; and severance expense, litigation-related costs, and other items, in each case that are unrelated to our core ongoing business operations. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.
Our management uses this measure internally to evaluate the performance of our business and this measure is one of the primary metrics by which management and other employees are compensated. We exclude the above items as some are non-cash in nature and others may not be representative of normal operating results. While we believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared and presented in accordance with GAAP.
A reconciliation of net (loss) income and net (loss) income margin to Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2024 and 2023, are presented below. We are not able to estimate net income (loss) or net income (loss) margin on a forward-looking basis or reconcile the guidance provided for Adjusted EBITDA margin to net income (loss) margin on a forward-looking basis without unreasonable efforts due to the variability and complexity with respect to the charges excluded from Adjusted EBITDA margin. In particular, the measures and effects of our stock-based compensation related to equity grants and the gain (loss) on changes in fair value of our warrant liability that, in each case, are directly impacted by unpredictable fluctuations in our share price. The variability of the above charges could have a significant and potentially unpredictable impact on our future GAAP financial results.
Free Cash Flow and Free Cash Flow Conversion
We define free cash flow as net cash provided by (used in) operating activities less capitalized software, and purchases of property and equipment. Free cash flow is an indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after capitalized software development costs and purchases of property and equipment, that can be used to repay debt obligations and/or for strategic initiatives. Free cash flow conversion is calculated by dividing free cash flow for a period by Adjusted EBITDA for the same period. Free cash flow and free cash flow conversion do not represent our residual cash flow available for discretionary purposes and does not reflect our future contractual commitments. A reconciliation of net cash provided by (used in) operating activities and operating cash flow conversion to free cash flow and free cash flow conversion, respectively, for the three and six months ended June 30, 2024 and 2023, are presented below.
The following table reconciles our non-GAAP financial measures to the most comparable GAAP financial measures for the three and six months ended June 30, 2024 and 2023.
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
($ in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of net (loss) income to Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(22,424 |
) |
|
$ |
22,331 |
|
|
$ |
(31,830 |
) |
|
$ |
(10,568 |
) |
Interest expense, net |
|
6,669 |
|
|
|
12,917 |
|
|
|
13,854 |
|
|
|
23,710 |
|
Income tax provision (benefit) |
|
4,965 |
|
|
|
(14,051 |
) |
|
|
7,645 |
|
|
|
1,452 |
|
Depreciation and amortization |
|
4,235 |
|
|
|
8,140 |
|
|
|
8,354 |
|
|
|
16,092 |
|
Litigation-related costs (1) |
|
661 |
|
|
|
288 |
|
|
|
1,083 |
|
|
|
1,499 |
|
Stock-based compensation expense |
|
7,721 |
|
|
|
3,605 |
|
|
|
15,590 |
|
|
|
6,946 |
|
Severance expense (2) |
|
— |
|
|
|
— |
|
|
|
58 |
|
|
|
— |
|
Change in fair value of warrant liability (3) |
|
35,118 |
|
|
|
(7,098 |
) |
|
|
53,798 |
|
|
|
8,219 |
|
Other (4) |
|
— |
|
|
|
752 |
|
|
|
— |
|
|
|
1,533 |
|
Adjusted EBITDA |
$ |
36,945 |
|
|
$ |
26,884 |
|
|
$ |
68,552 |
|
|
$ |
48,883 |
|
Revenue |
$ |
82,345 |
|
|
$ |
61,538 |
|
|
$ |
157,690 |
|
|
$ |
117,347 |
|
Net (loss) income margin |
|
(27.2 |
)% |
|
|
36.3 |
% |
|
|
(20.2 |
)% |
|
|
(9.0 |
)% |
Adjusted EBITDA Margin |
|
44.9 |
% |
|
|
43.7 |
% |
|
|
43.5 |
% |
|
|
41.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
15,850 |
|
|
$ |
6,303 |
|
|
$ |
36,299 |
|
|
$ |
14,783 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Capitalized development software costs and purchases of property and equipment |
$ |
(1,696 |
) |
|
$ |
(1,083 |
) |
|
$ |
(2,844 |
) |
|
$ |
(2,575 |
) |
Free cash flow |
$ |
14,154 |
|
|
$ |
5,220 |
|
|
$ |
33,455 |
|
|
$ |
12,208 |
|
Operating cash flow conversion (5) |
|
(70.7 |
)% |
|
|
28.2 |
% |
|
|
(114.0 |
)% |
|
|
(139.9 |
)% |
Free cash flow conversion |
|
38.3 |
% |
|
|
19.4 |
% |
|
|
48.8 |
% |
|
|
25.0 |
% |
(1) |
Litigation-related costs primarily represent external legal fees associated with outstanding litigation or regulatory matters, including fees incurred in connection with the potential Norwegian Data Protection Authority fine and CWA unionization. |
|
(2) |
Severance expense relates to severance incurred for employees who elected not to relocate or participate in our RTO Plan and other severance arrangements. |
|
(3) |
Change in fair value of warrant liability relates to the warrants that were remeasured as of June 30, 2024 and 2023. |
|
(4) |
Other represents other costs that are unrelated to our core ongoing business operations. |
|
(5) |
Operating cash flow conversion represents net cash provided by (used in) operating activities as a percentage of net income (loss). |
Trademarks
This press release may contain trademarks of Grindr. Solely for convenience, trademarks referred to in this press release may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that Grindr will not assert, to the fullest extent under applicable law, its rights to these trademarks.
About Grindr Inc.
With more than 14 million monthly active users, Grindr has grown to become the Global Gayborhood in Your PocketTM, on a mission to make a world where the lives of our global community are free, equal, and just. Available in 190 countries and territories, Grindr is often the primary way for its users to connect, express themselves, and discover the world around them. Since 2015 Grindr for Equality has advanced human rights, health, and safety for millions of LGBTQ+ people in partnership with organizations in every region of the world. Grindr has offices in
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Investors:
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Media:
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Source: Grindr Inc.
FAQ
What was Grindr's (GRND) revenue growth in Q2 2024?
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What is Grindr's (GRND) updated Adjusted EBITDA margin guidance for FY 2024?
