NEW YORK - Grindr Inc. (NYSE:GRND) reported better-than-expected third-quarter results and raised its 2024 revenue guidance, sending shares soaring 4.7% in after-hours trading.
The LGBTQ+ dating app operator posted adjusted earnings per share of $0.09, surpassing analyst estimates of $0.07. Revenue for the quarter came in at $89 million, exceeding the consensus forecast of $86.27 million and marking a significant increase from the same period last year.
Grindr's strong performance was driven by the success of its weekly Unlimited subscription offering, along with effective merchandising and paywall optimizations. The company also saw indirect revenue exceed expectations due to increased demand from third-party advertising partners.
"Grindr delivered an exceptional third quarter with strong growth across all financial and user metrics," said CEO George Arison. "Outstanding performance through the first nine months of the year is allowing us to increase revenue guidance for 2024 to 29% or greater."
The company now expects revenue growth in 2024 to be 29% or higher, up from its previous forecast. Grindr also anticipates maintaining its adjusted EBITDA margin at 42% or above.
Grindr has been focusing on product innovations to improve user experience and create new monetization opportunities. The company expanded testing of its "Right Now" feature and launched a new "feed" feature for real-time user interactions. It also introduced the Interest tab, which has driven increased user engagement and payer conversion.
Looking ahead to 2025, Grindr expects revenue growth to be driven by features already launched, with potential upside from new products in the latter half of the year. The company remains committed to enhancing user engagement and executing its ambitious product agenda under the leadership of Chief Product Officer AJ Balance.
Disclaimer: James Lu is the Chairman of Grindr and Owner of Investing.com
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