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Grindr (GRND)
NYSE:GRND
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Grindr
(NYSE:GRND)
Rating:73Outperform
Price Target:
$27.00
▲( 12.50% Upside)
Positive Factors
Financial Confidence
GRND announced a buyback program of up to $500MM, indicating confidence in their business.
Revenue Growth
Management raised their '25 revenue and EBITDA guides amid positive signals from new product initiatives.
User Engagement
Grindr reported a 35% year-over-year revenue growth in the fourth quarter, driven by strong user engagement and rising payer conversion.
Negative Factors
Earnings 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.
Grindr (GRND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.70B
Dividend YieldN/A
Average Volume (3M)1.93M
Price to Earnings (P/E)―
Beta (1Y)0.61
Revenue Growth30.08%
EPS Growth-196.62%
CountryUS
Employees142
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.09
Shares Outstanding195,884,550
10 Day Avg. Volume2,235,837
30 Day Avg. Volume1,927,619
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)-22.66
Price to Sales (P/S)0.00
P/FCF Ratio39.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.50Price Target Upside6.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Grindr Business Overview & Revenue Model
Company DescriptionGrindr Inc. operates social network platform for the LGBTQ community. Its platform enables gay, bi, trans, and queer people to engage with each other, share content and experiences, and express themselves. It offers a free, ad-supported service and a premium subscription version. The company was founded in 2009 and is based in West Hollywood, California.
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
24.00
Price Trends
20.31
Positive
18.95
Positive
16.23
Positive
Market Momentum
1.08
Positive
65.36
Neutral
61.84
Neutral
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 24 is above the 20-day moving average (MA) of 23.41, above the 50-day MA of 20.31, and above the 200-day MA of 16.23, indicating a bullish trend. The MACD of 1.08 indicates Positive momentum. The RSI at 65.36 is Neutral, neither overbought nor oversold. The STOCH value of 61.84 is Neutral, 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 3 New Risks
1.
We cannot guarantee that our stock repurchase program will be fully consummated or that it will enhance stockholder value, and any stock repurchases we make could affect the price of our common stock. Q4, 2024
2.
Our gayborhood expansion strategy may be unsuccessful and may expose us to additional risks. If our strategy does not achieve its expected benefits, there could be negative impacts to our business, financial condition and results of operations. Q4, 2024
3.
We may not be able to successfully implement our new product and services roadmap, which could adversely impact our business, financial conditions or results of operations. Q4, 2024
Grindr Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.70B | ― | -63.52% | ― | 30.08% | -196.62% | |
71 Outperform | $2.43B | 51.84 | 5.01% | ― | -8.44% | ― | |
71 Outperform | $4.32B | ― | -6.85% | ― | 20.46% | 39.37% | |
70 Outperform | $6.73B | 117.75 | 8.56% | ― | 27.32% | ― | |
67 Neutral | $4.42B | ― | -4.16% | ― | 17.70% | 61.98% | |
66 Neutral | $3.08B | ― | -11.93% | ― | 40.36% | 73.68% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% |
* Technology Sector Average
Performance Comparison
GRND
Grindr
24.00
14.63
156.14%
LYFT
Lyft
16.10
0.46
2.94%
MQ
Marqeta
5.07
-0.31
-5.76%
ZETA
Zeta Global Holdings Corp
13.09
-4.16
-24.12%
INTA
Intapp
54.58
18.40
50.86%
FRSH
Freshworks
14.42
1.18
8.91%
Grindr Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -1.84%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call indicates strong revenue and user growth, successful product launches, and a positive outlook for AI integration and the Woodwork health initiative. Operating expenses increased, but were outweighed by the positive financial and strategic developments.Q1-2025 Updates
Positive Updates
Revenue and EBITDA Growth
Total revenue grew 25% year over year to $94 million. The adjusted EBITDA margin reached 43%, totaling $41 million. Direct revenue increased 24% year over year to $80 million. Indirect revenue for Q1 grew 26% year over year to $14 million.
User Metrics and Engagement
Average monthly active users increased 7% over the prior year to 14.6 million. Average paying users increased 16% over the prior year to 1.2 million, bringing paid penetration to 8% for the quarter. Average direct revenue per paying user increased 8% over the prior year to $22.86 this quarter.
RightNow Feature Expansion
The RightNow feature has been rolled out to 17 major cities, with 20 to 25% of users engaging weekly. It is expected to expand to nearly 50% of weekly active users over the next several weeks.
AI-Native Product Developments
Grindr Inc. announced a suite of AI-native products, including A List, which is in testing with a quarter of unlimited users. The company is committed to becoming an AI-native leader among consumer apps.
Woodwork Health Initiative
Soft beta launch of Woodwork, a men's health subscription service designed for gay people, in partnership with a telehealth provider, Open Loop.
Cash Flow and Stock Repurchase
Generated free cash flow of over $23 million and ended the quarter with approximately $256 million in cash. Repurchased $141 million in common stock with $359 million remaining under the repurchase program.
Increased Guidance
Raised full-year guidance to 26% or greater revenue growth and at least 43% adjusted EBITDA margin due to the positive impact of ongoing tests and RightNow's early monetization.
Negative Updates
Operating Expenses Increase
Operating expenses in Q1 2025, excluding $25 million in cost of revenue, were $44 million, up 21% year over year, primarily driven by compensation-related expenses.
Company Guidance
During Grindr Inc.'s First Quarter 2025 Earnings Call, the company provided updated guidance, projecting full-year revenue growth of 26% or more and an adjusted EBITDA margin of at least 43%. The first quarter saw total revenue of $94 million, marking a 25% year-over-year increase, while adjusted EBITDA reached $41 million, or 43% of revenue. Key drivers included the monetization of the "RightNow" feature, now active in 17 major cities, and the introduction of an AI-native product suite featuring "A List," which leverages user activity data to enhance connections. Grindr Inc. also launched "Woodwork," a men's health subscription service focused on erectile dysfunction medication, reflecting a strategic expansion into healthcare. Despite macroeconomic uncertainties, Grindr Inc. reported a net income of $27 million, a significant improvement from a net loss of $9 million in the same period last year, and maintained a strong cash position with $256 million in cash and cash equivalents.Grindr Corporate Events
Executive/Board ChangesShareholder Meetings
Grindr Director Gary Horowitz to Step Down
Neutral
Apr 30, 2025
On April 24, 2025, Gary I. Horowitz informed Grindr Inc. that he will not seek re-election at the company’s 2025 annual stockholders meeting. His decision was not due to any disagreements with the company’s operations, policies, or practices.
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.