Grindr (GRND) - 2025 Q1 - Quarterly Results

Financial Highlights and Outlook 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 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] - Expanded the "Right Now" feature and soft-launched a new product as part of its "gayborhood expansion vision"[1] - 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] Forward-Looking Statements and Risk Factors 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][4][6] - 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] - 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] Non-GAAP Financial Measures 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] - 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] Adjusted EBITDA Reconciliation 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 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] Company Overview 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] - The service is available in 190 countries and territories, serving as a primary connection tool for its users[19]