Grindr Inc. Reports 2023 Q4 and Full Year 2023
Earnings Results
2023 Full Year Revenue was $260 Million,
Operating Income was $55 Million, Net Loss Margin of 21% and
Adjusted EBITDA Margin of 42%
121 Billion Chats Sent in 2023, with Revenue
from Paying Users up 38%
Guidance of 23% or Greater Revenue Growth and
40%+ Adjusted EBITDA Margin in 2024
Grindr Inc. (NYSE: GRND), the world’s largest social network and
dating app for the LGBTQ community, today posted its financial
results for the fourth quarter and fiscal year ended December 31,
2023 in a Letter to Shareholders. The Letter to Shareholders can be
accessed on Grindr’s Investor Relations website.
“The Grindr team delivered an outstanding first full year as a
public company. Our results came in well ahead of our financial
guidance; we generated solid growth in paying users supported by
the launch of Weeklies, our popular weekly subscription product;
and we drove best-in-class user engagement through our improved
user experience, highlighted by over 121 billion chats sent on the
platform in 2023 and roughly an hour spent on Grindr per day, per
user,” said George Arison, Chief Executive Officer of Grindr.
“We’ve entered 2024 with strong momentum and we’re excited about
the year ahead, with a robust product roadmap and a growing team.
We look forward to sharing more about our plans at our first-ever
Investor Day event in June.”
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 2023
financial results. The webcast of the conference call can be
accessed as follows:
Event: Grindr Fourth Quarter and Fiscal Year 2023 Earnings
Conference Call Date: Thursday, March 7, 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 as
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,” “intends,” “may,”
“outlook,” “plans,” “potential,” “predicts,” “seeks,” “should,”
“will” or the negative version of these words or other comparable
words or phrases.
The forward-looking statements, including guidance related to
revenue growth and adjusted EBITDA margin, 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 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. 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).
About Non-GAAP Measures
We use Adjusted EBITDA and Adjusted EBITDA margin, which are
non-GAAP financial 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 as a substitute
for, or superior to, the financial information prepared and
presented in accordance with GAAP.
We define Adjusted EBITDA as net (loss) income excluding income
tax provision (benefit); interest expense, net; depreciation and
amortization; stock-based compensation expense; severance expenses;
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 pursuant to
which on May 9, 2022, Grindr Group LLC and its subsidiaries
(“Legacy Grindr”) entered into that certain Agreement and Plan of
Merger (as amended on October 5, 2022) with Tiga Acquisition Corp.
(“Tiga”), in which Legacy Grindr would become a wholly owned
subsidiary of Tiga (“Business Combination”); Legacy Grindr
management fees; loss on extinguishment of debt; (loss) gain in
fair value of warrant liability and other expense that is unrelated
to Grindr's core ongoing business operations. 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 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.
A reconciliation of net loss and net loss margin to Adjusted
EBITDA and Adjusted EBITDA margin for the year ended December 31,
2023 and 2022 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. The following table presents the reconciliation
of net income to Adjusted EBITDA for the years ended December 31,
2023 and 2022:
Year Ended December
31,
($ in thousands)
2023
2022
Reconciliation of net (loss) income to
Adjusted EBITDA
Net (loss) income
$
(55,768
)
$
852
Interest expense, net (1)
46,007
31,538
Income tax provision (benefit)
4,023
(859
)
Depreciation and amortization
27,041
37,505
Transaction-related costs (2)
—
6,499
Litigation related costs (3)
2,339
1,722
Stock-based compensation expense
15,824
28,586
Severance expenses (4)
9,355
—
Management fees (5)
(97
)
644
Loss on extinguishment of debt
11,582
—
Loss (gain) in fair value of warrant
liability (6)
49,689
(21,295
)
Other expense (7)
163
—
Adjusted EBITDA
$
110,158
$
85,192
Revenue
$
259,691
$
195,015
Net (loss) income margin
(21.5
)%
0.4
%
Adjusted EBITDA Margin
42.4
%
43.7
%
_________________
(1)
Interest expense, net for the year ended December 31, 2022,
included the interest expense recognized with the settlement of the
deferred payment owed to Kunlun Group Holdings Limited in 2022 that
resulted in $11.9 million of interest expense for 2022.
(2)
Transaction-related costs consist of legal, tax, accounting,
consulting, and other professional fees related to the Business
Combination and other potential acquisitions.
(3)
Litigation-related costs primarily represent external legal fees
associated with the outstanding litigation or regulatory matters,
including fees incurred in connection with the Business
Combination, the potential Norwegian Data Protection Authority
fine, and employee unionization.
(4)
Severance expenses related to severance incurred for employees who
elected not to relocate or participate in our hybrid working model
involving a multi-phase return-to-office plan and other severance
arrangements.
(5)
Management fees represent administrative costs associated with San
Vicente Holdings LLC's ("SVE") 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.
(6)
Change in fair value of warrant liability relates to our warrants
that were remeasured as of December 31, 2023 due to the increase in
our share price since December 31, 2022.
(7)
Other expense represents other costs that are unrelated to our 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240307907956/en/
Investors: IR@grindr.com
Media: Press@grindr.com
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