James Fu Bin Lu, a director and ten percent owner at Grindr Inc. (NYSE:GRND), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Lu sold a total of 1,079,133 shares over two days, December 4 and December 5, 2024. The transactions were executed at prices ranging from $15.3201 to $15.3727 per share, amounting to a total value of approximately $16.57 million. The sale comes as Grindr's stock trades near its 52-week high, with shares up over 72% year-to-date, according to InvestingPro data.
Following these transactions, Lu retains ownership of 32,581,478 shares indirectly through Longview Capital SVH LLC, as well as 12,901 shares directly. The sales were reported as part of Lu's indirect ownership through Longview Capital SVH LLC, which is ultimately controlled by Lu through a series of holding entities. With a market capitalization of $2.81 billion and a GOOD financial health score from InvestingPro, investors can access comprehensive analysis and 12 additional ProTips about Grindr's current valuation and growth prospects through InvestingPro's detailed research reports.
In other recent news, Grindr reported strong third-quarter financial performance, with a significant 27% year-over-year increase in total revenue, reaching $89 million. The company's adjusted EBITDA also stood strong at $40 million, marking a 45% margin. Key contributors to this growth were the success of the Weekly Unlimited subscription and a surge in advertising demand, which saw indirect revenue climb 43% to $12 million. The company's CEO George Arison and CFO Vanna Krantz expressed optimism for Grindr's future, pointing to user engagement features and a refined ad strategy as key drivers.
The company also announced an increase in its revenue growth guidance for the year to 29% or more, reflecting positive expectations for the near future. Monthly active users grew by 8% to 14.6 million, with paying users increasing by 15% to 1.11 million. These recent developments highlight Grindr's strong position in the market.
However, the company is also addressing technical debt accumulated from the past, with some features, including photo sharing in group chats, still under development. Despite these challenges, Grindr ended the quarter with a solid financial position, including $39.1 million in cash and a gross leverage ratio of 2.1x. The company's strategy to rewrite portions of the mobile code base as new features are developed aims to improve reliability and user experience.
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