\nGrindr Inc. (NYSE: GRND) (\u201cGrindr\u201d or the \u201cCompany\u201d), the Global Gayborhood in Your PocketTM<\/sup>, today posted its financial results for the fourth quarter and fiscal year ended December 31, 2024 in a Letter to Shareholders. The Letter to Shareholders can be accessed on Grindr\u2019s Investor Relations website: https:\/\/investors.grindr.com\/<\/a>.\n<\/p>\n
\nThe Company also announced that its board of directors has authorized a two-year share repurchase program of up to $500 million of Grindr\u2019s common stock. Under the program, the Company may make repurchases, from time to time, through open market purchases, block trades, in privately negotiated transactions, accelerated stock repurchase transactions, or by other means until March 2027.\n<\/p>\n
\n\u201c2024 was a landmark year for Grindr. In addition to delivering financial performance significantly above our initial expectations, we set our vision for building the Global Gayborhood, began to execute on an ambitious long-term product roadmap, strengthened our team, and significantly enhanced the functionality and performance of our app for our community,\u201d said George Arison, CEO of Grindr. \u201cWith our 2025 guidance, we will continue to deliver another strong growth year. The foundation we\u2019ve built in a short amount of time leaves me truly inspired about what Grindr can accomplish and tremendously enthusiastic about our long-term potential. This is underscored by the $500 million share repurchase program we are announcing today.\u201d\n<\/p>\n
\nOn January 23, 2025, the Company announced that it would redeem all of its public and private warrants that remain unexercised as of 5:00 p.m., New York City time on February 24, 2025 (the \u201cRedemption Date\u201d), at a redemption price of $0.10 per warrant. Of the 37,359,825 warrants that were outstanding as of January 23, 2025, (i) an aggregate of 9,469,634 warrants were exercised on a cashless basis in exchange for the issuance of 3,418,518 shares of common stock; and (ii) 27,315,105 warrants were exercised for an aggregate of 27,315,105 shares of common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to the Company of $314.1 million. A total of 575,086 warrants remained unexercised as of the Redemption Date, and the Company redeemed those warrants for an aggregate redemption price of $0.1 million. Following the Redemption Date, the Company had no warrants outstanding. In connection with the redemption, the public warrants listed on the New York Stock Exchange (\u201cNYSE\u201d) under the ticker symbol \u201cGRND.WS\u201d ceased trading on the NYSE as of the close of trading on February 21, 2025, which was the last trading day prior to the Redemption Date, and were subsequently delisted. Shares of the Company\u2019s common stock continue to trade on NYSE under the symbol \u201cGRND\u201d.\n<\/p>\n
No Offer or Solicitation<\/span><\/p>\n \nThis press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Grindr, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.\n<\/p>\n Earnings Webcast Information<\/span><\/p>\n \nGrindr will host a live webcast today at 2:00 p.m. Pacific Time to discuss the Company\u2019s fourth quarter and fiscal year 2024 financial results. The webcast of the conference call can be accessed as follows:\n<\/p>\n \nEvent: Grindr Fourth Quarter and Fiscal Year 2024 Earnings Conference Call \nAn archived webcast of the conference call will also be accessible on Grindr\u2019s Investor Relations page, https:\/\/investors.grindr.com\/<\/a>.\n<\/p>\n Forward Looking Statements<\/span><\/b><\/p>\n \nSome of the statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws, including our guidance for 2025. 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 \u201canticipates,\u201d \u201capproximately,\u201d \u201cbelieves,\u201d \u201ccontinues,\u201d \u201ccould,\u201d \u201cestimates,\u201d \u201cexpects,\u201d \u201cgoal,\u201d \u201cintends,\u201d \u201cmay,\u201d \u201coutlook,\u201d \u201cplans,\u201d \u201cpotential,\u201d \u201cpredicts,\u201d \u201cprojects,\u201d \u201cseeks,\u201d \u201cshould,\u201d \u201cupcoming,\u201d \u201cwill\u201d or the negative version of these words or other comparable words or phrases.\n<\/p>\n \nThe forward-looking statements contained in this press release 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:\n<\/p>\n \nIn addition, statements that \u201cGrindr believes\u201d or \u201cwe believe\u201d 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.\n<\/p>\n \nWhile 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 \u201cRisk Factors<\/i>\u201d included under Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, in annual reports on Form 10-K we file thereafter, and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time. Any forward-looking statement speaks only as of the date on which it is made, and 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).\n<\/p>\n Non-GAAP Financial Measures<\/span><\/b><\/p>\n \nWe use Adjusted EBITDA and Adjusted EBITDA margin, free cash flow, and free cash flow conversion, 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\u2019 overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.\n<\/p>\n Adjusted EBITDA and Adjusted EBITDA Margin<\/i><\/b><\/p>\n \nAdjusted EBITDA adjusts for the impact of items that we do not consider indicative of the operational performance of our business. We define Adjusted EBITDA as net loss excluding income tax provision; interest expense, net; depreciation and amortization; stock-based compensation expense; gain in fair value of warrant liability; and severance expense, litigation-related costs, and other items, in each case that are unrelated to our core ongoing business operations. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.\n<\/p>\n \nOur management uses this measure internally to evaluate the performance of our business and this measure is one of the primary metrics by which management and other employees are compensated. We exclude the above items as some are non-cash in nature and others may not be representative of normal operating results. 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 U.S. GAAP.\n<\/p>\n \nA reconciliation of net loss and net loss margin to Adjusted EBITDA and Adjusted EBITDA margin for the years ended December 31, 2024 and 2023, are presented below. We are not able to estimate net loss or net loss margin on a forward-looking basis or reconcile the guidance provided for Adjusted EBITDA margin to net 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 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.\n<\/p>\n Free Cash Flow and Free Cash Flow Conversion<\/i><\/b><\/p>\n \nWe define free cash flow as net cash provided by operating activities less capitalized software, development costs, and purchases of property and equipment. Free cash flow is an indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after capitalized software development costs and purchases of property and equipment, that can be used to repay debt obligations and\/or for strategic initiatives. Free cash flow conversion is calculated by dividing free cash flow for a period by Adjusted EBITDA for the same period. Free cash flow and free cash flow conversion do not represent our residual cash flow available for discretionary purposes and do not reflect our future contractual commitments. A reconciliation of net cash provided by operating activities and operating cash flow conversion to free cash flow and free cash flow conversion, respectively, for the years ended December 31, 2024 and 2023, are presented below.\n<\/p>\n \nThe following table reconciles our non-GAAP financial measures to the most comparable GAAP financial measures for the years ended December 31, 2024 and 2023:\n<\/p>\n \n\u00a0\n<\/p>\n<\/td>\n \nYear Ended December 31,\n<\/p>\n<\/td>\n<\/tr>\n \n($ in thousands)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2024\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2023\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nReconciliation of net loss to Adjusted EBITDA\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNet loss\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(131,001\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n(55,768\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \nInterest expense, net\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n25,616\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n46,007\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nIncome tax provision\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n12,711\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n4,023\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nDepreciation and amortization\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n16,910\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n27,041\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nLitigation related costs (1)<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,190\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2,339\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nStock-based compensation expense\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n37,272\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n15,824\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nChange in fair value of warrant liability (2)<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n184,557\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n49,689\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nSeverance expenses (3)<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n58\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n9,355\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nManagement fees (4)<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u2014\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(97\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \nLoss on extinguishment of debt\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u2014\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n11,582\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nOther expense (5)<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u2014\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n163\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n147,313\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n110,158\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nRevenue\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n344,636\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n259,691\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNet loss margin\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(38.0\n<\/p>\n<\/td>\n \n)%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(21.5\n<\/p>\n<\/td>\n \n)%\n<\/p>\n<\/td>\n<\/tr>\n \nAdjusted EBITDA Margin\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n42.7\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n42.4\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nReconciliation of net cash provided by operating activities to free cash flow\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNet cash provided by operating activities\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n94,957\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n36,147\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nLess:\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nCapitalized development software costs and purchases of property and equipment\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(5,345\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(4,230\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n \nFree cash flow\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n89,612\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n31,917\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nFree cash flow conversion\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n60.8\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n29.0\n<\/p>\n<\/td>\n \n%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n_________________\n<\/p>\n Trademarks<\/span><\/b><\/p>\n \nThis press release may contain trademarks of Grindr. Solely for convenience, trademarks referred to in this press release may appear without the \u00ae or TM symbols, but such references are not intended to indicate, in any way, that Grindr will not assert, to the fullest extent under applicable law, its rights to these trademarks.\n<\/p>\n About Grindr Inc.<\/span><\/b><\/p>\n \nWith more than 14.5 million average monthly active users, Grindr has grown to become the Global Gayborhood in Your PocketTM<\/sup>, on a mission to make a world where the lives of our global community are free, equal, and just. Available in 190 countries and territories, Grindr is often the primary way for its users to connect, express themselves, and discover the world around them. Since 2015, Grindr for Equality has advanced human rights, health, and safety for millions of LGBTQ+ people in partnership with organizations in every region of the world. Grindr has offices in West Hollywood, the Bay Area, Chicago, and New York. The Grindr app is available on the App Store and Google Play.\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20250305527327\/en\/<\/a><\/span><\/p>\n Investors:
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Date: Wednesday, March 5, 2025
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Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)
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Live Webcast Site: https:\/\/investors.grindr.com\/<\/a><\/p>\n\n
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