Financial Performance - Grindr Inc. reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.03 per share a year ago [1] - The company posted revenues of $93.94 million for the quarter ended March 2025, which was 1.01% below the Zacks Consensus Estimate, compared to $75.35 million in the same quarter last year [2] - Over the last four quarters, Grindr has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2][1] Stock Performance - Grindr Inc. shares have increased approximately 34.7% since the beginning of the year, contrasting with a decline of 4.3% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $103.1 million, and for the current fiscal year, it is $0.40 on revenues of $430.3 million [7] - The outlook for the Internet - Software industry, where Grindr operates, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 grew 25% year over year to $94 million, with adjusted EBITDA margin reaching 43% at $41 million [15][20] - Direct revenue increased 24% year over year to $80 million, driven by demand for Unlimited Weekly and Extra Weekly subscriptions [15] - Average monthly active users rose 7% year over year to 14.6 million, while average paying users increased 16% to 1.2 million, resulting in a paid penetration of 8% [15][16] - Net income for Q1 was $27 million, representing 29% of revenue, compared to a net loss of $9 million in the same period last year [17] Business Line Data and Key Metrics Changes - The RightNow feature has been rolled out to 17 major cities, with 20-25% of users engaging weekly, contributing to the updated revenue guidance [9][10] - Indirect revenue grew 26% year over year to $14 million, supported by new ad formats and an expanded network of ad partners [16] Market Data and Key Metrics Changes - The company has seen a positive impact from foreign exchange rates, which contributed to the updated EBITDA guidance [25] - The average direct revenue per paying user increased 8% year over year to $22.86 [16] Company Strategy and Development Direction - Grindr is focusing on three strategic pillars: enhancing intent-based offerings, integrating AI into the app, and building a digital neighborhood [7] - The company plans to launch over 40 new products and initiatives in 2025, significantly increasing its product portfolio [13] - Woodwork, a men's health subscription service, is being developed as a startup within Grindr, targeting specific health needs of its user base [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising the full-year revenue growth outlook to 26% or greater and maintaining an adjusted EBITDA margin of at least 43% [6][20] - The company has not observed any consumer weakness despite broader economic concerns, attributing this to the higher disposable income of its user base [48][49] Other Important Information - Grindr completed the redemption of all outstanding unexercised warrants, which will eliminate the revaluation of warrant liability starting Q2 2025 [18] - The company generated free cash flow of over $23 million and ended the quarter with approximately $256 million in cash and cash equivalents [19] Q&A Session Summary Question: What changed in the higher 2025 guidance? - Management noted that positive results from ongoing tests and early monetization of RightNow contributed to the increased guidance [24][25] Question: How does Grindr defend its position against competitors? - Management emphasized the importance of understanding the specific needs of the gay community and highlighted the success of the RightNow feature in addressing immediate connection needs [42][44] Question: How is Grindr planning to integrate Woodwork into its ecosystem? - Management indicated that Woodwork is in its early stages and could potentially offer discounts on Grindr subscriptions and integrate payment systems [35][36] Question: How does Grindr view the international growth opportunity? - Management acknowledged significant opportunities for user growth both domestically and internationally, with plans to enhance product localization in the future [58][61] Question: What is the scope for growth in user engagement and monetization? - Management stated that product-led growth strategies are key, with new features aimed at retaining users who might otherwise seek alternatives [55][57]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue grew 25% year over year to $94 million, with adjusted EBITDA margin reaching 43% at $41 million [14][16] - Direct revenue increased 24% year over year to $80 million, driven by demand for Unlimited Weekly and Extra Weekly subscriptions [14][16] - Average monthly active users rose 7% year over year to 14.6 million, while average paying users increased 16% to 1.2 million, resulting in a paid penetration of 8% [14][15] - Net income for Q1 was $27 million, representing 29% of revenue, compared to a net loss of $9 million in the same period last year [16][17] - Free cash flow generated in Q1 was over $23 million, with cash and cash equivalents at approximately $256 million [17] Business Line Data and Key Metrics Changes - The RightNow feature has been rolled out to 17 major cities, with 20-25% of users engaging weekly, contributing to the positive revenue guidance [8][14] - Indirect revenue grew 26% year over year to $14 million, supported by new ad formats and an expanded network of ad partners [15] Market Data and Key Metrics Changes - The company noted a favorable foreign exchange impact in March, contributing positively to revenue and EBITDA guidance [23] - The U.S. market remains strong, with 95% brand awareness, while international markets present significant growth opportunities due to lower brand recognition [54][56] Company Strategy and Development Direction - Grindr is focusing on becoming an AI-native leader in non-consumer apps, with plans to launch over 40 new products in 2025 [6][12] - The company is committed to deepening intent-based offerings and building a digital neighborhood, with initiatives like Woodwork targeting health and wellness [7][11] - The product roadmap emphasizes user experience and monetization, with a focus on optimizing offerings as new products are launched [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model and the ability to drive enhanced monetization and operational efficiency, raising full-year revenue growth guidance to 26% or greater [6][18] - The management team has not observed any consumer weakness, attributing this stability to the higher education levels and disposable income of their user base [44][45] Other Important Information - The company completed the redemption of all outstanding unexercised warrants, which will eliminate the revaluation of warrant liability starting Q2 2025 [16] - The Woodwork initiative is in its early stages, with plans to expand healthcare offerings beyond erectile dysfunction medications [11][32] Q&A Session Summary Question: What changed regarding the higher 2025 guidance? - Management indicated that positive results from ongoing tests and early monetization of RightNow contributed to the increased revenue and EBITDA guidance [22][23] Question: How does Grindr defend its position against competitors? - Management emphasized that understanding the specific needs of gay men is crucial, and Grindr's product strategy is built around intent, which sets it apart from competitors [38][39] Question: How is Grindr addressing potential macroeconomic weaknesses? - Management reported no observed consumer weakness and noted that their user base tends to have higher disposable income, which may buffer against economic downturns [44][45] Question: Can you elaborate on the AI native product suite? - Management expressed excitement about the AI products, particularly Alist, which addresses user needs in innovative ways, and highlighted plans for further AI-based offerings [62][65]

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) Grindr reported strong Q1 2025 financial results, with revenue up **25%** to **$93.9 million**, and raised full-year 2025 guidance Q1 2025 Financial Performance | Metric | Q1 2025 (Millions of US Dollars) | YoY Change | | :--- | :--- | :--- | | Revenue | $93.9 | +25% | | Net Income | $27.0 | N/A (from loss) | | Adjusted EBITDA | $40.7 | +28.7% | | Adjusted EBITDA Margin | 43.3% | +1.4 p.p. | FY 2025 Guidance Update | FY 2025 Guidance | Previous | Updated | | :--- | :--- | :--- | | Revenue Growth | Not Stated | 26% or Greater | | Adjusted EBITDA Margin | Not Stated | At Least 43% | [Business and Product Updates](index=1&type=section&id=Business%20and%20Product%20Updates) Grindr launched early testing of its AI-powered 'A-List' premium experience and expanded its 'Right Now' feature - Began early testing of **"A-List,"** a new AI-powered premium user experience[1](index=1&type=chunk) - Expanded the **"Right Now"** feature and soft-launched a new product as part of its **"gayborhood expansion vision"**[1](index=1&type=chunk) - CEO George Arison stated, "This is the **biggest year for product innovation** in our history, and the team is executing at an exceptional level"[1](index=1&type=chunk) [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines forward-looking statements and key risk factors that could impact Grindr's future performance and actual results - The report contains **forward-looking statements** regarding guidance, growth, and strategy, which are not guarantees of future performance and are subject to numerous risks[3](index=3&type=chunk)[4](index=4&type=chunk)[6](index=6&type=chunk) - Key risk factors include the ability to retain and add users, **regulatory compliance** (especially privacy and data protection), **competition**, and successful **adoption of AI/ML**[7](index=7&type=chunk) - Investors are directed to the "Risk Factors" section in the company's **Annual Report on Form 10-K** for a more detailed discussion of potential risks[8](index=8&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Grindr uses non-GAAP measures like Adjusted EBITDA and free cash flow to assess core operating performance, with detailed reconciliations provided - The company uses non-GAAP measures such as **Adjusted EBITDA** and **free cash flow** to evaluate core operating performance, which may differ from measures used by other companies[9](index=9&type=chunk) - Forward-looking guidance for **Adjusted EBITDA margin** cannot be reconciled to **net income margin** without unreasonable efforts due to the variability of excluded charges like stock-based compensation[12](index=12&type=chunk) [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q1 2025 Net Income of **$27.0 million** reconciled to an Adjusted EBITDA of **$40.7 million**, yielding a **43.3%** Adjusted EBITDA Margin Adjusted EBITDA Reconciliation (Thousands of US Dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net income (loss)** | **$27,019** | **$(9,406)** | | Interest expense, net | $3,875 | $7,185 | | Income tax provision | $4,551 | $2,680 | | Depreciation and amortization | $3,477 | $4,119 | | Stock-based compensation expense | $10,947 | $7,869 | | Change in fair value of warrant liability | $(9,905) | $18,680 | | **Adjusted EBITDA** | **$40,689** | **$31,607** | | **Revenue** | **$93,938** | **$75,345** | | Net income (loss) margin | 28.8% | (12.5)% | | **Adjusted EBITDA Margin** | **43.3%** | **41.9%** | [Free Cash Flow Reconciliation](index=4&type=section&id=Free%20Cash%20Flow%20Reconciliation) Q1 2025 net cash from operating activities was **$23.8 million**, yielding a free cash flow of **$23.2 million** and a **56.9%** conversion rate Free Cash Flow Reconciliation (Thousands of US Dollars) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,793 | $20,449 | | Capitalized development software costs | $(628) | $(1,148) | | **Free cash flow** | **$23,165** | **$19,301** | | Free cash flow conversion | 56.9% | 61.1% | - **Free cash flow** is defined as net cash from operating activities less capitalized software, development costs, and purchases of property and equipment[15](index=15&type=chunk) [Company Overview](index=5&type=section&id=Company%20Overview) Grindr, positioned as "the Global Gayborhood in Your Pocket," serves over **14.5 million** monthly active users across **190** countries - Grindr has more than **14.5 million** average monthly active users[19](index=19&type=chunk) - The service is available in **190 countries and territories**, serving as a primary connection tool for its users[19](index=19&type=chunk)

Group 1 - Grindr (GRND) reported 4Q24 results that were largely in line with consensus, as the quarter was communicated ahead of time [1] - The company provided in-line FY25 guidance, but shares sold off due to EBITDA guidance [1] Group 2 - Astrada Advisors specializes in actionable recommendations that enhance portfolio performance and uncover alpha opportunities, with a strong track record in investment research [1] - The firm has expertise in technology, media, internet, and consumer sectors in North America and Asia, excelling in identifying high-potential investments [1] - Astrada Advisors integrates rigorous fundamental analysis with data-driven insights to provide a nuanced understanding of key trends, growth drivers, and competitive landscapes [1]

Group 1 - Grindr Inc. reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.04 per share a year ago [1] - The company posted revenues of $97.62 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 0.43%, and up from $72.09 million year-over-year [2] - Grindr has surpassed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock has underperformed, losing about 12% since the beginning of the year compared to the S&P 500's decline of -2.4% [3] - The earnings outlook for Grindr is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $97.5 million, and for the current fiscal year, it is $0.40 on revenues of $427.9 million [7] Group 3 - The Internet - Software industry, to which Grindr belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - For the year ended December 31, 2024, Grindr Inc. reported revenue of $344.636 million, a 32.7% increase from $259.691 million in 2023[412]. - Grindr reported a net loss of $131,001,000 for the year ended December 31, 2024, compared to a net loss of $55,768,000 in 2023, indicating a significant increase in losses[416]. - The Company recognized direct revenue of $290,890,000, an increase of 29.1% from $225,285,000 in 2023[454]. - Indirect revenue for the year ended December 31, 2024, was $53,746,000, up 56.5% from $34,406,000 in 2023[454]. - The total income tax provision for the year ended December 31, 2024, was $12,711, compared to $4,023 in 2023, marking an increase of approximately 216%[554]. Operating Expenses - The total operating expenses for 2024 were $252.038 million, compared to $204.243 million in 2023, reflecting a 23.4% increase[412]. - Stock-based compensation increased to $37,272,000 in 2024 from $15,824,000 in 2023, reflecting a rise of approximately 135%[416]. - The cost of revenue (exclusive of depreciation and amortization) rose to $87,579,000 in 2024, up from $67,458,000 in 2023, representing a 29.8% increase[482]. - Advertising costs for the year ended December 31, 2024, totaled $8,215,000, a substantial increase from $2,378,000 in 2023[460]. Assets and Liabilities - The company had cash and cash equivalents of $59.152 million as of December 31, 2024, up from $27.606 million in 2023, indicating a 114.2% increase[410]. - Total assets increased to $479.090 million in 2024 from $444.595 million in 2023, marking an increase of 7.8%[410]. - Long-term debt decreased from $325.600 million in 2023 to $275.580 million in 2024, a reduction of 15.4%[410]. - The company’s stockholders' deficit increased to $131.570 million in 2024 from $18.292 million in 2023, indicating a substantial decline in equity[410]. Cash Flow - The net cash provided by operating activities was $94,957,000 in 2024, up from $36,147,000 in 2023, representing a growth of about 162%[416]. - The company had a net cash used in financing activities of $58,853,000 in 2024, compared to $13,036,000 in 2023, indicating a significant increase in cash outflows[417]. - The company incurred cash interest paid of $25,992,000 in 2024, down from $47,859,000 in 2023, reflecting a decrease of approximately 46%[417]. Stock and Equity - The Company repurchased 1,016,496 shares in 2024 and 357,240 shares in 2023 related to employees' tax withholding upon vesting of restricted stock units[529]. - The 2022 Equity Incentive Plan was amended to increase the number of shares reserved for issuance from 13,764,400 to 16,624,700 shares, with 8,520,012 shares available for grant as of December 31, 2024[531]. - The intrinsic value of options exercised during the years ended December 31, 2024, and 2023 was $8,351 and $2,081, respectively, indicating a substantial increase in option value realized[552]. Internal Controls and Compliance - The company’s internal control over financial reporting was assessed as effective as of December 31, 2024, following remediation of previously disclosed material weaknesses[588]. - The material weakness related to payroll processes has been remediated as of December 31, 2024[589]. - There were no changes in internal control over financial reporting during the last fiscal quarter[590]. Miscellaneous - The company faced a reduced administrative fine of 65,000 NOK (approximately $5,716) upheld by the Norwegian Privacy Appeals Board for GDPR violations[572]. - The company signed a lease for office space in New York with an initial base rent of $27,000 per month, escalating by 5% annually[579].

Grindr Inc. (NYSE:GRND) Q4 2024 Earnings Conference Call March 5, 2025 5:00 PM ET Company Participants Tolu Adeofe - Head-Investor Relations George Arison - Chief Executive Officer Vanna Krantz - Chief Financial Officer Conference Call Participants Andrew Marok - Raymond James John Blackledge - TD Cowen Eric Sheridan - Goldman Sachs Operator Good afternoon. My name is Calvin and I'll be your conference operator today. At this time, I would like to welcome everyone to the Grindr's Fourth Quarter and Full Yea ...

LETTER TO SHAREHOLDERS FOURTH QUARTER AND FISCAL YEAR 2024 | MARCH 5, 2025 LETTER TO SHAREHOLDERS 1 Q4 2024 Q4 2024 LETTER TO SHAREHOLDERS 2 Dear Grindr Shareholders, 2024 was a landmark year for Grindr. We grew full-year revenue 33% year-over- year to $345 million with an Adjusted EBITDA margin of 43% - well ahead of guidance - driven by our relentless focus on user experience, our commitment to delivering great products, and the continued expansion of our advertising business. FY 2024 Achieved 33% year-ov ...

Warrant Redemption - The Company is redeeming all outstanding Warrants at a price of $0.10 per Warrant, effective February 24, 2025[1] - A total of 34,860,000 Warrants are being redeemed, including 18,560,000 Private Placement Warrants and 16,299,825 other Warrants[2] - The redemption is triggered as the last reported sales price of Common Stock has been between $10.00 and $18.00 per share for twenty trading days prior to January 17, 2025[11] - Warrant holders can exercise their Warrants until 5:00 p.m. New York City time on the Redemption Date, either for cash at $11.50 per share or on a cashless basis[5] - The maximum number of shares issued on a cashless basis will not exceed 0.361 shares of Common Stock per Warrant[5] - The Company will provide the Redemption Fair Market Value to Warrant holders no later than one business day after the ten-trading day period following the Notice of Redemption[5] - The last trading day for the Warrants on the NYSE will be February 21, 2025[6] - Holders of Warrants in "street name" must contact their brokers to determine the procedure for exercising their Warrants[14] - Any unexercised Warrants after the Redemption Date will be void, and holders will only receive the Redemption Price[9] - The Company encourages Warrant holders to consult with their financial advisors regarding the exercise of their Warrants[25] Financial Performance and Growth - The company reported a revenue of $96.77 billion in the September quarter, setting a record for iPhone sales[110] - The growth in the Chinese market contributed significantly to the overall revenue increase, reflecting a strong demand for new products[110] - Future guidance indicates an expected revenue growth of 10% year-over-year for the next quarter, driven by new product launches[110] - User data shows an increase of 15% in active devices, reaching a total of 1.5 billion devices globally[110] Investment and Innovation - The company is investing $5 billion in research and development for new technologies and product innovations over the next fiscal year[110] - The company has completed a strategic acquisition of a tech startup for $1 billion to enhance its software capabilities[110] - New product lines are expected to launch in Q1 2024, with projected sales of $2 billion in the first quarter[110] Market Strategy - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 20% increase in market share[110] - A new marketing strategy is being implemented to increase brand awareness, with a budget allocation of $500 million for the upcoming year[110] Operational Efficiency - The company aims to reduce operational costs by 5% through efficiency improvements and automation initiatives[110]