Third Quarter Revenue was $70.3 Million
Net Loss of $0.4 Million, Net Loss Margin of
1%
Operating Income of $16.6 Million, Adjusted
EBITDA of $32.6 million and Adjusted EBITDA Margin of 46%
Raising FY 2023 Guidance to 31% or Greater
Revenue Growth and 41%+ Adjusted EBITDA Margin
Grindr Inc. (NYSE: GRND), the world’s largest social network for
the LGBTQ community, today posted its financial results for the
third quarter ended September 30, 2023 in a Letter to Shareholders.
The Letter to Shareholders can be accessed on Grindr’s Investor
Relations website.
“We delivered another strong quarter as more users are engaging
with our new paid offerings,” said George Arison, Chief Executive
Officer of Grindr. “Based on continued solid business trends we are
again raising our financial outlook for 2023. Looking into next
year and beyond we are focused on building a high-performance team
across the organization to drive our product roadmap and we are
very excited about the many long-term opportunities to deliver more
to our community.”
Earnings Webcast Information
Grindr will host a live webcast today at 2:00 p.m. Pacific Time
to discuss the Company’s third quarter financial results. The
webcast of the conference call can be accessed as follows:
Event: Grindr Third Quarter 2023 Earnings Conference Call Date:
Monday, November 13, 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 our industry, operations and future
business plans and performance. These forward-looking statements
can generally be identified by the use of forward-looking
terminology, such as “anticipates,” “approximately,” “believes,”
“continues,” “could,” “estimates,” “expects,” “intends,” “may,”
“outlook,” “plans,” “potential,” “predicts,” “seeks,” “should,”
“will” or the negative version of these words or other comparable
words or phrases, 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, expectations regarding
new product launches and their expected effect on full year 2023
guidance, including the expected continued success of Weeklies, 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:
- our reliance on historical data, which may be of limited
reliability, in providing revenue guidance;
- 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;
- the impact of the regulatory environment and complexities with
compliance related to such environment, including maintaining
compliance with privacy and data protection laws and
regulations;
- our ability to respond to general economic conditions;
- factors relating to the business, operations and financial
performance of Grindr and our subsidiaries, including:
- competition in the dating and social networking products and
services industry;
- the ability to maintain and attract users;
- fluctuation in quarterly and yearly results;
- our ability to adapt to changes in technology and user
preferences in a timely and cost-effective manner;
- our ability to protect systems and infrastructures from
cyber-attacks and prevent unauthorized data access;
- our dependence on the integrity of third-party systems and
infrastructure; and
- 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;
- the effects macroeconomic and geopolitical events on our
business, such as health epidemics, pandemics, natural disasters
and wars or other regional conflicts;
- the ability to maintain the listing of our common stock and
public warrants on the New York Stock Exchange (“NYSE”); and
- the increasingly competitive environment in which we
operate.
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 in the section titled “Risk Factors” included under Part
I, Item 1A in our Annual Report on Form 10-K for the year ended
December 31, 2022 and updates in our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2023. Any forward-looking statement
speaks only as of the date on which it is made, and you should not
place 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 Measures
Grindr uses Adjusted EBITDA and Adjusted EBITDA margin, 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 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.
We define Adjusted EBITDA as net loss excluding income tax
provision, interest expense, net, depreciation and amortization,
stock-based compensation expense, severance, transaction-related
costs, litigation-related costs for matters unrelated to the
Company's ongoing business, including those matters incurred as
part of the Business Combination, Legacy Grindr management fees,
change in fair value of warrant liability and other expense. Our
management uses this measure 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. We exclude 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 adjusts
for the impact of items that we do not consider indicative of the
operational performance of our business. Adjusted EBITDA Margin is
calculated by dividing Adjusted EBITDA for a period by revenue for
the same period. 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.
The following table presents the reconciliation of net loss to
Adjusted EBITDA for the three and nine months ended September 30,
2023 and 2022.
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands)
2023
2022
2023
2022
Reconciliation of net loss to Adjusted
EBITDA
Net loss
$
(437
)
$
(4,657
)
$
(11,005
)
$
(4,458
)
Interest expense, net
11,985
4,786
35,695
10,998
Income tax provision
1,272
3,474
2,724
3,727
Depreciation and amortization
5,753
9,097
21,845
27,215
Transaction-related costs (1)
—
1,033
—
2,211
Litigation-related costs (2)
414
439
1,913
1,521
Stock-based compensation expense
3,648
9,686
10,594
23,353
Severance expenses (3)
6,744
—
8,077
552
Management fees (4)
(97
)
181
(97
)
544
Change in fair value of warrant liability
(5)
3,362
—
11,581
—
Others (6)
(43
)
—
157
—
Adjusted EBITDA
$
32,601
$
24,039
$
81,484
$
65,663
Revenue
$
70,258
$
50,402
$
187,605
$
140,487
Net loss margin
(0.6
)%
(9.2
)%
(5.9
)%
(3.2
)%
Adjusted EBITDA Margin
46.4
%
47.7
%
43.4
%
46.7
%
_________________
(1)
Transaction-related costs consist of
legal, tax, accounting, consulting, and other professional fees
related to a transaction entered into on May 9, 2022, whereby
Grindr Group LLC (“Grindr Group”) and its subsidiaries (“Legacy
Grindr”) entered into an Agreement and Plan of Merger (as amended
on October 5, 2022) with Tiga Acquisition Corp. (“Tiga”), in which
Grindr Group became a wholly owned subsidiary of Tiga (the
“Business Combination”) and other potential acquisitions that are
non-recurring in nature.
(2)
Litigation-related costs primarily
represent external legal fees associated with the outstanding
litigation or regulatory matters incurred in connection with the
Business Combination, related to a potential fine that may be
imposed by the Norwegian Data Protection Authority, the CFIUS
review of the Business Combination, as well as legal fees related
to employee unionization, which are unrelated to Grindr’s core
ongoing business operations.
(3)
Severance expenses related to severance
incurred for employees who elected not to relocate or participate
in our multi-phase return-to-office plan announced in August 2023
and other one-off severance.
(4)
Management fees represent administrative
costs associated with San Vicente Holdings LLC's administrative
role in managing financial relationships and providing directive on
strategic and operational decisions, which ceased to continue after
the Business Combination. In September 2023, certain management
fees previously accrued were forgiven.
(5)
Change in fair value of warrant liability
relates to our warrants that were remeasured as of September 30,
2023.
(6)
Others represent other costs that are
unrelated to Grindr's core ongoing business operations.
About Grindr Inc.
With more than 13 million monthly active users globally, Grindr
has grown to become a fundamental part of the LGBTQ community since
its launch in 2009. The company continues to expand its ecosystem
to enable LGBTQ 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, as well as on the web.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231113990100/en/
Investors: IR@grindr.com
Media: Press@grindr.com
Grindr (NYSE:GRND)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Grindr (NYSE:GRND)
Historical Stock Chart
Von Mai 2023 bis Mai 2024