Grindr Inc. Reports 2022 Q4 and Full Year 2022
Earnings Results
2022 Full Year Operating Income of $13 Million
and Adjusted EBITDA Margin of 44%
111 Billion Chats Sent and 999 Million Album
Shares in 2022, with Revenue from Paying Users Up 41%
Inaugural Shareholder Letter Details Plans to
Drive Monetization, with Guidance of 25% or Greater Revenue Growth
and 38%+ EBITDA Margin in 2023
Grindr Inc. (NYSE: GRND), the world’s largest social network for
the LGBTQ community, today posted its financial results for the
fourth quarter and fiscal year ended December 31, 2022 in a Letter
to Shareholders. The Letter to Shareholders can be accessed on
Grindr’s Investor Relations website.
“Grindr is off to a great start as a newly public company,
delivering strong growth in revenue and Adjusted EBITDA,” said
George Arison, Chief Executive Officer of Grindr. “We grew revenue
from our paying users by 41% in 2022. We have put the foundation in
place to drive sustainable long-term growth and value creation as
we enhance our user experience, better monetize our core business,
build out our international business and, longer-term, add new
adjacent, community-focused businesses.”
Earnings Webcast Information
Grindr will host a live webcast today at 2:00 p.m. Pacific Time
to discuss the company’s fourth quarter and fiscal year financial
results. The webcast of the conference call can be accessed as
follows:
Event: Grindr Fourth Quarter and Fiscal Year 2022 Earnings
Conference Call
Date: Monday, March 6, 2023
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 “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995 regarding Grindr’s
current views with respect to its industry, operations and future
business plans and performance. These forward-looking statements
can generally be identified by the use of forward-looking
terminology, including the terms “believes,” “estimates,”
“anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,”
“may,” “will” or “should” or, in each case, their negative or other
variations or comparable terminology, but the absence of these
words does not mean that a statement is not forward-looking. These
forward-looking statements include, among others, statements about
our growth opportunities, our 2023 strategic priorities, our plan
to generate sustainable double-digit revenue growth and strong
profitability and our full year 2023 guidance. Forward-looking
statements, including guidance related to Revenue Growth and
Adjusted EBITDA Margin, are predictions, projections and other
statements about future events that are based on current
expectations and assumptions and, as a result, are not guarantees
of future performance and are subject to risks and uncertainties
that may cause actual results to differ materially from our
expectations discussed in the forward-looking statements. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this press release, including but
not limited to: (i) our reliance on historical data, which may be
of limited reliability, in providing revenue guidance; (ii) the
impact of the regulatory environment and complexities with
compliance related to such environment; (iii) our ability to
respond to general economic conditions; (iv) factors relating to
the business, operations and financial performance of Grindr and
its subsidiaries, including: (a) competition in the dating and
social networking products and services industry; (b) the ability
to maintain and attract users; and (c) fluctuation in quarterly and
yearly results; (v) natural disasters, outbreaks and pandemics,
including the COVID-19 pandemic and MPox; (vi) our ability to adapt
to changes in technology and user preferences in a timely and
cost-effective manner; (vii) our ability to maintain compliance
with privacy and data protection laws and regulations; (viii) our
ability to protect systems and infrastructures from cyber-attacks
and prevent unauthorized data access; (ix) our dependence on the
integrity of third-party systems and infrastructure; and (x) our
ability to protect our intellectual property rights from
unauthorized use by third parties. The foregoing list of factors is
not exhaustive. Further information on these and additional risks,
uncertainties and other factors that could cause actual outcomes
and results to differ materially from those included in or
contemplated by the forward-looking statements contained in this
press release are included under the caption “Risk Factors” in our
Registration Statement filed on Form S-1/A filed by Grindr with the
SEC on February 9, 2023 as well as other filings that we make with
the SEC from time to time. Forward-looking statements speak only as
of the date they are made. Readers are cautioned not to put undue
reliance on forward-looking statements, and the Company assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
About Non-GAAP
Grindr uses Adjusted EBITDA and Adjusted EBITDA margin, which
are non-GAAP measures, to understand and evaluate its 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 Grindr’s
financial performance and should not be considered as a substitute
for, or superior to, the financial information prepared and
presented in accordance with GAAP. Grindr defines Adjusted EBITDA
as net income (loss) excluding income tax provision, interest
expense, depreciation and amortization, stock-based compensation
expense, non-core expenses/losses (gains), including purchase
accounting adjustments related to deferred revenue,
transaction-related costs, management fees, and interest income
from the related party loan to Catapult GP II. Adjusted EBITDA
Margin represents Adjusted EBITDA as a percentage of revenue.
Grindr’s management uses Adjusted EBITDA and Adjusted EBITDA margin
internally to evaluate the performance of our business and this
measure is one of the primary metrics by which our internal budgets
are based and by which management is compensated. Grindr believes
Adjusted EBITDA and Adjusted EBITDA Margin are also helpful to
investors, analysts, and other interested parties because they can
assist in providing a more consistent and comparable overview of
our operations across our historical financial periods. Grindr
excludes the above items as some are non-cash in nature, and others
are non-recurring that they may not be representative of normal
operating results. Adjusted EBITDA and Adjusted EBITDA margin
adjust for the impact of items that Grindr does not consider
indicative of the operational performance of our business. While
Grindr believes that these non-GAAP financial measures 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.
Unaudited Reconciliation of Net Income to
Adjusted EBITDA
$ in thousands Q4 2022 Q4 2021
FY 2022 FY 2021
Net income
$5,195
$6,497
$852
$5,064
Interest expense, net (1)
20,540
3,835
31,538
18,698
Income tax (benefit) expense
(4,586
)
1,450
(859
)
1,236
Depreciation and amortization
10,291
10,700
37,506
43,234
Transaction-related costs (2)
4,288
876
6,499
3,854
Litigation related costs (3)
201
535
1,722
1,913
Stock-based compensation expense
5,233
679
28,586
2,485
Management fees (4)
100
185
644
728
Purchase accounting adjustment
-
8
-
900
Other income (5)
(552
)
(1,409
)
-
(1,058
)
Change in fair value of warrant liability (6)
(21,295
)
-
(21,295
)
-
Adjusted EBITDA
$19,415
$23,356
$85,193
$77,054
_______________
1)
Interest expense, net for the year ended
December 31, 2022 included the loss on extinguishment of Deferred
Payment (as defined in our public filings).
2)
Transaction-related costs consist of
legal, tax, accounting, consulting, and other professional fees
related to the Business Combination with Tiga Acquisition Corp. (as
defined in our public filings), that are non-recurring in
nature.
3)
Litigation related costs primarily
represent external legal fees associated with the outstanding
litigation or regulatory matters such as the potential Datatilsynet
fine or the CFIUS review of the Business Combination, which are
unrelated to Grindr’s core ongoing business operations.
4)
Management fees represent administrative
costs associated with SVH’s administrative role in managing
financial relationships and providing directive on strategic and
operational decisions, which ceased to continue after the closing
of the Business Combination.
5)
For the year ended December 31, 2021,
other income primarily represents costs incurred from
reorganization events that are unrelated to Grindr’s core ongoing
business operations, including severance and employment related
costs of $0.5 million, offset by PPP Loan forgiveness income of
$1.5 million.
6)
Change in fair value of warrant liability
relates to our warrants that were remeasured to fair value of $17.9
million as of December 31, 2022, resulting in a gain of $21.3
million for the year ended December 31, 2022.
About Grindr Inc.
With roughly 12 million monthly active users in virtually every
country in the world, Grindr has grown to become a fundamental part
of the queer community since its launch in 2009. The company
continues to expand its ecosystem to enable gay, bi, trans and
queer people to connect, express themselves, and discover the world
around them. Grindr is headquartered in West Hollywood, California.
The Grindr app is available on the App Store and Google Play.
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version on businesswire.com: https://www.businesswire.com/news/home/20230306005746/en/
Investors: IR@grindr.com
Media: Press@grindr.com
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