Total Revenue (USD, thousands)

Cost of Goods Sold (COGS) (USD, thousands)

Selling, General, and Administrative Expenses (SG&A) (USD, thousands)

Research and Development (R&D) (USD, thousands)

Depreciation and Amortization (D&A) (USD, thousands)

Interest Expense (USD, thousands)

Operating Income (EBIT) (USD, thousands)

Net Income (USD, thousands)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

0a97987e75146e50b4d0b14daf0ac121c9b43c887b37aaa146c324bf5732ef5b

Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

a55be7a559bd94666a0443726b928dfd945e6dbbc740ffb1b6ca3128e82859f9

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

355513c434d62499328fd7b8b01e48f7087fcabf3a4efda714a472f7e4f53858

The EPS turnaround in Q3 2024 was driven by **robust revenue growth** (a 27% year-over-year increase to **$89.3 million**), **improved operating income** rising to **$28.4 million** from **$16.6 million**, a significant **reduction in interest expense** (from **$12.0 million** to **$6.4 million**), and a notable **gain in the fair value of the warrant liability** (an **$8.2 million gain** compared to a **$3.4 million loss**), which together contributed to an improved **net income margin** of **28%** compared to a loss margin the previous year.  **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:6]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:3]** **[0001820144-24-000052_exhibit991-2024q3earningre.htm:0]** 

What drove the EPS turnaround in Q3 2024?

The significant jump in operating income in Q3 2024 was driven by strong revenue growth—**direct revenue increased by 25% to $77 million** and **indirect revenue surged by 43% to $12 million**—combined with improved operating efficiency. Notably, operating expenses (excluding cost of revenue) fell from **51% to 43% of revenue**, and product development expenses dropped by **34%**, contributing to higher margins, with the operating margin improving to **31.8% from 23.6% year-over-year**.  **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:6]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:3]** **[GRND_3407189_2]** 

Why did operating income jump significantly in Q3 2024?

The sharp turnaround in pre-tax income in Q3 2024 was driven by several factors. **First**, there was robust **revenue growth** with a 27% increase in revenue year-over-year, fueled by both **direct revenue** (up by 25% to **$77 million**) and **indirect revenue** (up by 43% to **$12 million**). **Second**, there was a substantial **gain in the fair value of the warrant liability**, which improved from a loss of **$3,362 thousand** in Q3 2023 to a gain of **$8,219 thousand** in Q3 2024. **Third**, the company benefited from a **reduction in interest expense**, decreasing from **$11,985 thousand** to **$6,400 thousand**. **Finally**, these improvements were complemented by enhanced **operating income**, which increased from **$16,572 thousand** to **$28,387 thousand**. These factors collectively contributed to the significant improvement in net income before income tax in Q3 2024.  **[0001820144-24-000054_grnd-20240930.htm:44]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:9]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:6]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:3]** **[0001820144-24-000052_exhibit991-2024q3earningre.htm:0]** **[GRND_3407189_2]** 

What factors contributed to the sharp turnaround in pre-tax income in Q3 2024?

The reversal was primarily driven by several factors: **revenue growth increased by $19.1 million** which boosted overall income, a **$11.6 million benefit from the change in the fair value of warrant liability**, and a **$5.6 million reduction in interest expenses**. These positive impacts more than offset the **$7.3 million rise in operating expenses** and a **$4.3 million increase in the income tax provision**, collectively transforming a prior net loss into a positive comprehensive net income in Q3 2024.  **[0001820144-24-000054_grnd-20240930.htm:5]** **[0001820144-24-000054_grnd-20240930.htm:44]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:6]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:3]** 

What led to the reversal of comprehensive net income in Q3 2024?

**Grindr’s Q3 2024 revenue increase was driven by several key factors.** The rise is attributed to **direct revenue growth** from enhancements such as the successful launch of a weekly Unlimited subscription, improved merchandising and paywall optimizations, an increase in **Average Paying Users by 149,000**, and an **8.2% rise in ARPPU**, which collectively boosted subscription income.  **[GRND_3407189_2]** **[0001820144-24-000054_grnd-20240930.htm:40]** **[0001820144-24-000054_grnd-20240930.htm:29]**  In addition, **indirect revenue growth** contributed through increased interstitial advertising demand and expanded direct brand sales.  **[0001820144-24-000054_grnd-20240930.htm:40]** **[0001820144-24-000054_grnd-20240930.htm:29]**  Moreover, significant **geographic gains** were seen with revenue increases of **25.3% in North America**, **30.8% in Europe**, and **28.6% in other regions**.  **[0001820144-24-000054_grnd-20240930.htm:40]**  Lastly, product innovations such as the **Interest tab** and **Roam**, along with an **8% rise in Monthly Active Users to 14.6 million**, further promoted user engagement and revenue uplift.  **[GRND_3407189_2]** **[0001820144-24-000052_grindr_q32024xshlxvfinal.htm:0]** 

What factors sparked the revenue increase in Q3 2024?

56c5aed7cedcd17ccd1ba517e19e4b37fdabcdf9f6ae029dabbe1e6c6270d5a3

7e2603121593bf11714cfb3cd0a7fa05727a5b333cc6864663985eb76482db0c

Revenue (USD, thousands)

Cost of revenue (exclusive of depreciation and amortization) (USD, thousands)

Selling, general and administrative expense (USD, thousands)

Product development expense (USD, thousands)

Depreciation and amortization (USD, thousands)

Total operating expenses (USD, thousands)

Income from operations (USD, thousands)

Interest expense, net (USD, thousands)

Other income (expense), net (USD, thousands)

Gain (loss) in fair value of warrant liability (USD, thousands)

Total other income (loss), net (USD, thousands)

Net income (loss) before income tax (USD, thousands)

Income tax provision (USD, thousands)

Net income (loss) and comprehensive income (loss) (USD, thousands)

Net income (loss) per share, Basic (USD)

Net income (loss) per share, Diluted (USD)

6c7c0a170b46a158a016547bc5b1ef93c592d4fdebf6717ccca5708898ca3a4b

Cash and cash equivalents (USD, thousands)

Accounts receivable, net (USD, thousands)

Prepaid expenses (USD, thousands)

Deferred charges (USD, thousands)

Other current assets (USD, thousands)

Total current assets (USD, thousands)

Restricted cash (USD, thousands)

Property and equipment, net (USD, thousands)

Capitalized software development costs, net (USD, thousands)

Intangible assets, net (USD, thousands)

Right-of-use assets (USD, thousands)

Other assets (USD, thousands)

Total assets (USD, thousands)

Accounts payable (USD, thousands)

Accrued expenses and other current liabilities (USD, thousands)

Current maturities of long-term debt, net (USD, thousands)

Deferred revenue (USD, thousands)

Total current liabilities (USD, thousands)

Long-term debt, net (USD, thousands)

Warrant liability (USD, thousands)

Lease liability (USD, thousands)

Deferred tax liability (USD, thousands)

Other non-current liabilities (USD, thousands)

Total liabilities (USD, thousands)

Preferred stock (USD, thousands)

Common stock (USD, thousands)

Treasury stock (USD, thousands)

Additional paid-in capital (USD, thousands)

Accumulated deficit (USD, thousands)

Total stockholders’ deficit (USD, thousands)

Total liabilities and stockholders’ deficit (USD, thousands)

55fd5063e440089368e17cc50fad2dbcb9eeca9b04b4e732df6208dc99ce37da

Direct Revenue

Indirect Revenue

Total Revenue

2caec99fe28004647c66006aef511d256221df0743f241ead54453533443695e

North America

- U.S.

Europe

- U.K.

Rest of the World

24c74b4271ad182e37e883ce5a39643978a8b8577087eb67881889a3886161fd

Grindr Inc (GRND)

Financials