• Full Year Revenue: $345 million, up 33% year-over-year.
• Adjusted EBITDA Margin: 43%, totaling $147 million.
• Advertising Business Growth: 56% year-over-year increase.
• Average Monthly Active Users: Increased 7% to 14.2 million.
• Average Paying Users: Increased 15% to 1.1 million.
• Payer Penetration: 7.6% for the year.
• Average Direct Revenue Per Paying User: $22.53, up 12% year-over-year.
• Fourth Quarter Revenue: $98 million, up 35% year-over-year.
• Fourth Quarter Adjusted EBITDA: $39 million with a 40% margin.
• Cash and Cash Equivalents: $59.2 million at year-end.
• Pro Forma Cash Balance: Approximately $370 million after warrant redemption.
• 2025 Revenue Growth Guidance: Greater than 24%.
• 2025 Adjusted EBITDA Margin Guidance: 41% or greater.

Release Date: March 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Grindr Inc (NYSE:GRND) achieved a 33% year-over-year revenue growth in 2024, reaching $345 million, surpassing initial guidance.
• The company reported a strong adjusted EBITDA margin of 43%, exceeding expectations by 3 percentage points.
• Grindr Inc (NYSE:GRND) experienced significant user engagement, with over 130 billion chats and more than 70 minutes spent on the app daily.
• The advertising business grew by 56% year-over-year, driven by a refreshed strategy and enhanced ad tech capabilities.
• The company announced a $500 million share repurchase program, reflecting confidence in its long-term potential and commitment to returning capital to shareholders.

Negative Points

• Grindr Inc (NYSE:GRND) faced challenges from prior Chinese ownership, including technical debt and the need for a long-term vision.
• Despite improvements, the company still has significant work ahead in advancing its ad tech to achieve higher CPMs.
• The company is in the early stages of monetizing new features, which may take time to fully realize revenue potential.
• There are concerns about liquidity and float due to a significant portion of shares held in private hands.
• The company is undergoing significant team changes, with 75% of employees joining since the CEO's appointment, which may impact stability and continuity.

Q & A Highlights

Q: What were the surprise factors in product development over the past 6 to 9 months? Was it conservatism in the Investor Day guidance or easier development than expected? A: George Arison, CEO: The company has seen increased productivity, with 75% of the team joining since I became CEO. We've tripled our GitHub check-ins per engineer compared to 2022, allowing us to ship more products. We've also added a team in Colombia, enhancing our capacity. Our understanding of user needs and Gen AI capabilities has improved, enabling us to develop more responsive products.

Q: How do you balance the $500 million share repurchase program with liquidity and float concerns? A: George Arison, CEO: The float has doubled since we went public, and we believe it will continue to improve. Long-term holders are increasing their stakes, signaling confidence. Our focus is on investing in growth and returning excess capital to shareholders, which has been well-received by investors.

Q: For the 2025 revenue outlook, how should we think about the mix of paying user growth and ARPPU growth? Any insights on Q1 trends? A: Vandana Mehta-Krantz, CFO: We expect continued payer growth and ARPPU improvements, driven by new features and international expansion. Our initial guidance for 2025 is 24% or higher revenue growth and 41% or higher EBITDA margin. We will update guidance as we gain more insights throughout the year.

Q: With so much product and platform innovation ahead, what signals will you look for to accelerate innovation or expand products from beta? A: George Arison, CEO: We focus on user feedback and engagement metrics to refine products. We aim to release products incrementally to gather insights and make necessary adjustments. Our core features remain stable, while new spaces like the Discover tab allow for experimentation without disrupting the core experience.

Q: How are users utilizing the app in different ways, and how do you plan to build features around these use cases? A: George Arison, CEO: We are introducing features that align with cultural shifts, such as increased interest in long-term relationships and parenting among younger users. The Discover tab will help users find connections based on interests and dating preferences, adding significant value without altering the core product.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.