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Grindr (GRND)
NYSE:GRND
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Grindr
(NYSE:GRND)
59Neutral
Positive Factors
Product and Monetization
Several new products and features are expected to improve monetization and payer penetration, supporting sustained growth.
Revenue Growth
Grindr reported a 35% year-over-year revenue growth driven by strong user engagement and rising payer conversion.
Share Repurchase
A two-year share repurchase program of up to $500M has been authorized, indicating confidence in the company's financial health.
Negative Factors
EBITDA Performance
Fourth quarter EBITDA was below estimates, affected by investments into advertising, product, and AI.
Share Dilution
The redemption of warrants resulted in a 17% dilution of Grindr's share count, impacting shareholders.
Valuation Concerns
In the 'blue sky' analysis, investors would have to be willing to pay a high multiple for GRND's share price to reach $35+, which may appear more reasonable on a long-term basis.
Grindr (GRND) vs. S&P 500 (SPY)
Market Cap
$3.54B
Dividend YieldN/A
Average Volume (3M)2.09M
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth32.71%
EPS Growth-131.68%
CountryUS
Employees112
SectorTechnology
Sector Strength47
IndustrySoftware
Share Statistics
EPS (TTM)-0.74
Shares Outstanding208,246,400
10 Day Avg. Volume2,303,430
30 Day Avg. Volume2,094,910
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.28
Price to Cash Flow (P/CF)30.00
P/FCF Ratio30.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside23.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Grindr Business Overview & Revenue Model
Company DescriptionTiga Acquisition Corp is a blank check company.
How the Company Makes MoneyGrindr generates revenue primarily through its subscription-based model and in-app advertising. The company offers a premium subscription service known as 'Grindr XTRA' and 'Grindr Unlimited,' which provide users with additional features such as an ad-free experience, access to more profiles, and advanced filters for more refined searches. In addition to subscription revenue, Grindr monetizes through targeted in-app advertisements and partnerships with brands seeking to reach its diverse user base. These advertisements are typically displayed to non-paying users, providing a substantial revenue stream. Grindr also leverages partnerships with various LGBTQ+ advocacy organizations and businesses to enhance its community engagement and brand presence, though these partnerships do not directly contribute to its revenue.
Grindr Financial Statement Overview
Summary
Grindr is experiencing strong revenue growth and improved cash flow generation, which are positive signs. However, the company faces challenges with profitability and a negative equity position, raising concerns about its financial stability. Reducing debt levels is commendable, but addressing net losses will be crucial for long-term success.Income Statement
Grindr shows strong revenue growth with a significant increase from $259.7 million to $344.6 million (32.7% growth) in the last year. Gross profit margin remains healthy at approximately 74.6%, indicating efficient cost management. However, the net profit margin is negative due to a net loss of $131 million, highlighting profitability challenges despite growing revenues.65
Positive
Balance Sheet
The balance sheet reveals a concerning negative stockholders' equity of $-131.57 million, indicating potential solvency issues. The debt-to-equity ratio is not viable since equity is negative, suggesting high leverage. However, the company has managed to reduce its total debt significantly from $344.2 million to $15 million, which is a positive sign.40
Negative
Cash Flow
Grindr's cash flow statement shows strong free cash flow generation at $94 million, with a significant increase from the previous year. The operating cash flow to net income ratio is positive, indicating good cash generation relative to reported earnings. However, the company's net income remains negative, which could impact future cash flows.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 344.64M | 259.69M | 195.01M | 145.83M | 104.46M | Gross Profit |
| 257.06M | 192.23M | 143.74M | 108.47M | 73.04M | EBIT |
| 92.60M | 55.45M | 10.24M | 23.71M | -124.92K | EBITDA |
| -127.00M | 21.30M | 70.09M | 68.23M | -20.85M | Net Income Common Stockholders |
| -131.00M | -55.77M | 852.00K | 5.06M | -20.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 59.15M | 27.61M | 8.72M | 15.78M | 41.39M | Total Assets |
| 479.09M | 444.60M | 438.83M | 449.73M | 503.70M | Total Debt |
| 15.00M | 344.25M | 365.34M | 137.12M | 193.93M | Net Debt |
| -44.15M | 316.64M | 356.61M | 121.34M | 152.54M | Total Liabilities |
| 610.66M | 462.89M | 434.78M | 186.49M | 247.45M | Stockholders Equity |
| -131.57M | -18.29M | 4.05M | -5.89M | -10.96M |
| Cash Flow | Free Cash Flow | |||
| 94.01M | 31.92M | 45.06M | 30.63M | -812.36K | Operating Cash Flow |
| 94.96M | 36.15M | 50.64M | 34.43M | -345.36K | Investing Cash Flow |
| -5.34M | -4.23M | -5.58M | -3.80M | -278.76M | Financing Cash Flow |
| -58.85M | -13.04M | -52.11M | -56.25M | 280.25M |
Grindr Technical Analysis
Positive
17.34
Price Trends
17.50
Negative
16.52
Positive
14.08
Positive
Market Momentum
-0.23
Negative
51.35
Neutral
89.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRND, the sentiment is Positive. The current price of 17.34 is above the 20-day moving average (MA) of 17.21, below the 50-day MA of 17.50, and above the 200-day MA of 14.08, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 89.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRND.
Grindr Risk Analysis
Grindr disclosed 57 risk factors in its most recent earnings report. Grindr reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grindr Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $21.31B | 11.99 | 47.49% | ― | 19.35% | ― | |
62 Neutral | $7.82B | 15.44 | -865.98% | 0.61% | 3.41% | -10.41% | |
59 Neutral | $15.66B | ― | -28.69% | ― | 16.40% | 48.48% | |
59 Neutral | $3.54B | ― | -966.61% | ― | 32.71% | -131.68% | |
58 Neutral | $21.91B | 10.52 | -19.51% | 2.38% | 4.81% | -25.47% | |
56 Neutral | $487.62M | ― | -44.89% | ― | 1.88% | -11430.00% |
* Technology Sector Average
Performance Comparison
GRND
Grindr
17.34
7.21
71.17%
SNAP
Snap
9.33
-1.93
-17.14%
PINS
Pinterest
32.42
-2.55
-7.29%
MTCH
Match Group
30.49
-4.64
-13.21%
BMBL
Bumble
4.53
-6.49
-58.89%
Grindr Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -7.22% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
Grindr demonstrated strong financial performance with significant revenue and user growth. The company successfully navigated past ownership challenges and is confident in its future, as evidenced by a share repurchase program and a robust product roadmap. However, some challenges remain, including past ownership hurdles and cautious market testing for new products.Highlights
Strong Revenue Growth
Grindr's full year revenue grew 33% year-over-year to $345 million, surpassing initial guidance by 10 percentage points.
High Adjusted EBITDA Margin
The company achieved a 43% adjusted EBITDA margin, which was 3 percentage points higher than the initial guidance.
User Engagement and Growth
Users sent more than 130 billion chats, shared over 2 billion albums, and spent more than 70 minutes on average on the app daily. Average monthly active users increased 7% to 14.2 million, and average paying users grew 15% to 1.1 million.
Advertising Business Growth
Grindr's advertising business grew 56% year-over-year, with an 85% year-over-year increase in indirect revenue in Q4.
Share Repurchase Program
Grindr announced its first share repurchase program for up to $500 million, signaling confidence in the company's long-term potential.
Product Innovation and Roadmap
Grindr released its first annual product roadmap, emphasizing AI-first experiences and new features like A-list, For You, and Discover.
Lowlights
Challenges from Prior Ownership
Grindr faced hurdles from prior Chinese ownership, including significant taxable debt and the need for a long-term vision.
Limited Market Launches
The health and wellness product launch is initially limited to test beta in select markets, indicating potential delays or cautious expansion.
Company Guidance
In Grindr's fourth-quarter and full-year 2024 earnings call, the company reported a 33% year-over-year revenue growth, reaching $345 million, which exceeded initial guidance by 10 percentage points. The adjusted EBITDA margin was 43%, surpassing guidance by 3 percentage points. Key performance indicators showed positive trends, with average monthly active users increasing by 7% to 14.2 million and average paying users rising by 15% to 1.1 million, resulting in a payer penetration of 7.6%. The advertising business grew by 56% year-over-year, contributing to a total of $98 million in fourth-quarter revenue, up 35% from the previous year. For 2025, Grindr provided guidance of over 24% revenue growth and an adjusted EBITDA margin of at least 41%. Additionally, the company announced a $500 million share repurchase program, demonstrating confidence in its long-term potential.Grindr Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Grindr Unveils AI and Travel Product Roadmap
Positive
Jan 21, 2025
Grindr has announced an ambitious product roadmap for 2025, highlighting six new intent-based travel and AI personalization products aimed at enhancing user engagement and meaningful connections. This initiative includes AI-driven features like chat summaries and personalized recommendations, alongside travel enhancements such as an Explore Heatmap and Travel Pass. These developments build on the momentum from 2024 and are expected to deliver significant value to users and shareholders, further solidifying Grindr’s position in the market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.