Grindr (GRND) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 27% year-over-year to $89.3M, with net income of $24.7M and Adjusted EBITDA of $40.1M (44.9% margin).

• Full-year 2024 revenue growth guidance raised to 29% or greater, reflecting strong user and financial momentum.

• Outperformance driven by weekly unlimited subscription, merchandising, paywall optimizations, and robust advertising demand.

• Continued focus on user-centric product innovation, including expansion of features like Right Now and Interest tab.

• Significant progress in resolving legacy bugs and improving app stability, supporting user engagement and conversion.

Financial highlights

• Q3 2024 revenue: $89.3M (up $19.0M, or 27.0% year-over-year); net income: $24.7M (27.6% margin); Adjusted EBITDA: $40.1M (44.9% margin).

• Free cash flow for Q3 was $27.9M, with a 69.5% conversion rate from adjusted EBITDA.

• Direct revenue Q3: $77M (up 25%); indirect (advertising) revenue: $12.4M (up 42.5%).

• Average MAU increased 8% year-over-year to 14.6M; average paying users rose 15.5% to 1.1M.

• Net cash provided by operating activities for Q3 2024 was $29.1M.

Outlook and guidance

• Raised 2024 revenue growth guidance to 29% or greater, with expected Adjusted EBITDA margin of 42% or greater.

• Management expects continued momentum into 2025, driven by user-focused product enhancements.

• ARPPU and Average Paying Users expected to fluctuate as new subscription options and pricing are tested.

• Cash flows from operations anticipated to cover operating and financing costs for the next twelve months.