Grindr (GRND) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 revenue of $82.3 million, representing 34% year-over-year growth and surpassing expectations.

• Adjusted EBITDA margin reached 45% for the quarter, reflecting strong operational efficiency.

• Net loss was $22.4 million (net loss margin 27.2%), mainly due to a $35.1 million loss in fair value of warrant liability and a $5.0 million income tax provision.

• Enhanced paid tier merchandising, new weekly subscription offerings, and product features drove strong conversion and monetization.

• Raised full-year 2024 guidance to at least 27% revenue growth and over 42% adjusted EBITDA margin.

Financial highlights

• Q2 2024 total revenue was $82.3 million, up 34% year-over-year; H1 2024 revenue was $157.7 million, up 34.4% year-over-year.

• Direct revenue grew 31% to $70 million; indirect revenue rose nearly 50% to $12 million.

• Adjusted EBITDA was $36.9 million (45% margin), up from $26.9 million (44%) a year ago.

• Net loss for Q2 2024 was $22.4 million, with a net loss margin of 27.2%.

• Positive free cash flow of $14.2 million, with a 38% free cash flow conversion.

Outlook and guidance

• Full-year 2024 guidance raised to at least 27% revenue growth and 42%+ adjusted EBITDA margin.

• Management expects continued revenue growth from new product offerings and international expansion, with ARPPU and paying user growth as key drivers.

• Near-term ARPPU may fluctuate as subscription options are tested; focus remains on increasing paying users and monetization.

• Ongoing focus on product roadmap and operational efficiency to sustain momentum.