Grindr Q4 2024 Earnings Report
Key Takeaways
Grindr achieved record-breaking engagement levels and strong financial performance in Q4 2024. Total revenue increased by 35% year-over-year to $98 million, driven by solid growth in both subscription-based revenue and advertising. Operating income reached $20 million, while Adjusted EBITDA grew 36% year-over-year. Despite reporting a net loss of $124 million, the loss was primarily due to a non-cash fair value adjustment of warrants. Key user metrics, including MAUs, paying users, and ARPPU, all reached all-time highs.
Total revenue increased 35% YoY to $98 million.
Direct revenue grew 28% YoY to $80 million, while indirect revenue surged 85% to $18 million.
Adjusted EBITDA grew 36% YoY to $39 million, maintaining a 40% margin.
Net loss of $124 million primarily driven by a non-cash fair value adjustment of warrant liabilities.
Grindr
Grindr
Forward Guidance
Grindr anticipates strong revenue growth of at least 24% in FY 2025, with an Adjusted EBITDA margin of 41% or greater. Expansion into new product offerings and enhanced advertising capabilities are expected to drive additional revenue.
Positive Outlook
- Projected revenue growth of at least 24% in FY 2025.
- Adjusted EBITDA margin expected to remain above 41%.
- Expansion into new product categories outside the core app.
- Continued growth in paying users and engagement metrics.
- Ongoing investment in AI-driven product enhancements.
Challenges Ahead
- Potential macroeconomic challenges affecting consumer spending.
- Higher operating expenses due to increased stock-based compensation.
- Competitive pressures in the social networking and dating space.
- Regulatory risks related to data privacy and compliance.
- Challenges in scaling international revenue growth.