Grindr Inc.
For the period ended Mar 31, 2025. Filed May 9, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
GRND$13.54-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001820144-24-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001820144-25-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 166 previous paragraphs and 136 current paragraphs.
64 unchanged; 48 reworded; 22 added; 47 removed; 7 previous and 2 current paragraphs rearranged.
Tables are not compared: 5 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
We generated $93.9 million and $75.3 million of revenue for the three months ended March 31, 2025 and 2024, respectively, representing a period-over-period growth of 24.7%. We had 1.2 million and 1.0 million Average Paying Users, for the three months ended March 31, 2025 and 2024, respectively, representing a period-over-period growth of 15.5%.
Current report
Testing of Our First Gayborhood Initiative, Woodwork TM
Current report
In April 2025, Grindr began testing Woodwork by Grindr, our first Gayborhood expansion initiative in the health and wellness space. Woodwork is a white-label erectile dysfunction (ED) medication subscription service powered by OpenLoop, our partner for clinical support. While the initial focus of Woodwork is our core user base, we also believe the brand has the potential to expand to a broader audience over time. The health and wellness services provided through Woodwork will be offered as a cash pay service. We are currently testing Woodwork in limited jurisdictions and plan to expand to more states during 2025.
Current report
In connection with our testing of Woodwork, we and our third-party suppliers, compounders, and manufacturers for Woodwork may be subject to extensive regulation by the U.S. federal Food and Drug Administration (“FDA”) and federal, state, and local authorities. These authorities can enforce regulations related to the testing, production, compounding, control, safety, quality assurance, labeling, promotion, packaging, sterilization, storage, and distribution of FDA-approved prescription drugs and/or compound medications. The ED medication currently offered through Woodwork is a compounded drug product under Section 503 of the Federal Food, Drug & Cosmetic Act (“FDCA”). Drugs compounded by outsourcing facilities in compliance with Section 503 are exempt from the new drug approval requirements of the FDCA and certain labeling requirements of the FDCA. As such, the FDA does not review or verify the safety or effectiveness of compounded products distributed or dispensed by outsourcing facilities, which includes the ED medication currently offered through Woodwork; rather Section 503 of the FDCA establishes standards for manufacturing processes and controls applicable to outsourcing facilities as a means to ensure drug quality. Section 503B outsourcing facilities are subject to FDA inspection on a risk-based schedule.
Current report
In addition, Woodwork is subject to extensive federal and state healthcare laws and regulations applicable to the clinical support provided by OpenLoop. In certain jurisdictions, the corporate practice of medicine doctrine generally prohibits non-physicians from practicing medicine, employing physicians to provide clinical services, or otherwise exercising undue influence or control over medical decisions of physicians, among other things. Additionally, the practice of medicine and related health professions are subject to various federal, state, and local certification and licensing laws, regulations, approvals and standards, relating to, among other things, the qualifications of the provider, professional practice (including specific requirements when providing health care utilizing telehealth technologies and the provision of remote care), the continuity and adequacy of medical care, the maintenance of medical records, the supervision of personnel, and the prerequisites for prescribing medication and ordering of tests.
Current report
Redemption of Warrants and Related Warrant Exercises
Current report
On January 23, 2025, we provided notice to the registered holders of our outstanding warrants that we would redeem the warrants at a redemption price of $0.10 per warrant at 5:00 p.m. New York City time on February 24, 2025 (the “Redemption Date”). In connection with the redemption, warrant holders were entitled to exercise their warrants until 5:00 p.m. New York City time on the Redemption Date, either (i) for cash, at an exercise price of $11.50 per share of common stock; or (ii) on a “cashless basis” in which case, the holder would receive 0.361 shares of common stock per warrant, which number was determined in accordance with the terms of the warrant agreement governing the terms of the warrants and based on the Redemption Date and the volume-weighted average price of the common stock for the ten trading days immediately following the date on which the notice of redemption was sent to registered holders of outstanding warrants.
Current report
After our announcement that we would redeem all of our outstanding warrants, and prior to the conclusion of the redemption notice period at 5:00 p.m. New York City time on the Redemption Date, an aggregate of: (i) 9,469,634 warrants were exercised on a cashless basis in exchange for the issuance of 3,418,518 shares of common stock; and (ii) 27,315,105 warrants were exercised for cash for an aggregate of 27,315,105 shares of common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to us of $314.1 million. At the conclusion of the redemption notice period on the Redemption Date, the remaining 575,086 warrants issued and outstanding were redeemed at a price of $0.10 per warrant for aggregate cash payment from the Company of $58. The public warrants were delisted from the New York Stock Exchange pursuant to a Form 25 filed on February 24, 2025.
Current report
•Revenue of $93.9 million and $75.3 million, respectively. The increase for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was $18.6 million, or 24.7%.
Current report
•Net income (loss) of $27.0 million and $(9.4) million, respectively. The change for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was $36.4 million, or 387.2%. This resulted in a net income (loss) margin of 28.8% and (12.5)%, respectively.
Current report
Revenue for the three months ended March 31, 2025 and 2024, was $93.9 million and $75.3 million, respectively. The increase in revenue period-over-period was $18.6 million, or 24.7%.
Current report
Selling, general and administrative expense for the three months ended March 31, 2025 and 2024, was $30.2 million and $26.6 million, respectively. The $3.6 million increase, or 13.5%, was primarily due to an increase in personnel related expenses of $4.5 million from the increased headcount, including an increase in stock-based compensation expense of $2.3 million. In addition, there was an increase of $0.8 million for advertising expenses. This is partially offset by decreases in professional, legal and contractors fees of $1.8 million.
Current report
Product development expense for the three months ended March 31, 2025 and 2024, was $10.3 million and $5.7 million, respectively. The $4.6 million increase, or 80.7%, was primarily due to an increase in contractor fees of $2.0 million to support the engineering function while we continue to scale our team and an increase in personnel related expenses of $2.8 million from the increased headcount, including an increase in stock-based compensation expense of $0.8 million.
Current report
Interest expense, net for the three months ended March 31, 2025 and 2024, was $3.9 million and $7.2 million, respectively. The $3.3 million decrease, or 45.8%, was primarily due to a decrease in interest expense of $1.9 million from lower debt balances and lower interest rates. Additionally, the decrease is due to an increase of interest income of $1.4 million primarily from an increased balance in our investment in U.S. treasury bills.
Current report
Other (expense) income, net
Current report
Gain (loss) in fair value of warrant liability represents the change in the fair value of our warrants between each reporting period or upon the exercise and redemption of our warrants. In February 2025, we completed the redemption of all outstanding warrants.
Current report
Income tax provision for the three months ended March 31, 2025 and 2024, was $4.6 million and $2.7 million, respectively. The $1.9 million increase, or 70.4%, was primarily due to the mark-to-market warrant liability adjustment, and Section 162(m) officer compensation.
Current report
The following table presents the reconciliation of net income (loss) to Adjusted EBITDA for the three months ended March 31, 2025 and 2024:
Current report
The following table presents the reconciliation of net cash provided by operating activities to free cash flow for the three months ended March 31, 2025 and 2024:
Current report
Net cash provided in financing activities for the three months ended March 31, 2025, was $173.6 million, was primarily due to proceeds from the exercise of warrants of $314.1 million. We announced the redemption of all our outstanding warrants in January 2025, which resulted in a significant amount of our warrants being exercised prior to their redemption in February 2025. The proceeds from the exercise of warrants were partially offset by payments for the repurchases of common stock under our stock repurchase program of $132.0 million, payments to tax authorities for employee equity awards of $5.4 million and principal payments of debt of $3.8 million.
Current report
As noted above, in January 2025, we provided notice that we would redeem all of our outstanding warrants, which consisted of (i) 18,560,000 private placement warrants, (ii) 13,799,825 public warrants; (iii) 2,500,000 forward purchase warrants; and (iv) and 2,500,000 backstop warrants, on February 24, 2025. After we announced the redemption of the warrants and before the conclusion of the redemption notice period on February 24, 2025, an aggregate of 27,315,105 warrants were exercised for an aggregate of 27,315,105 shares of our common stock at an exercise price of $11.50 per share, for aggregate cash proceeds to us of $314.1 million. In addition, 9,469,634 warrants were exercised on a cashless basis in exchange for the issuance of 3,418,518 shares of our common stock.
Current report
In March 2025, our Board of Directors authorized a stock repurchase program to allow for the repurchase of up to $500 million of shares of our common stock for the period from March 7, 2025 to March 6, 2027. Our stock repurchase program does not obligate us to repurchase a minimum amount of shares. Under the program, shares of our common stock may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the three months ended March 31, 2025, we repurchased approximately 8.3 million shares for $141.1 million under the share repurchase program. See Note 8 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information. As of May 1, 2025, $273.8 million in aggregate value of shares of Grindr stock remains available under the share repurchase program.
Removed paragraphs (47)
Previous report
We generated $89.3 million and $70.3 million of revenue, respectively, for the three months ended September 30, 2024, and 2023, and we generated $247.0 million and $187.6 million of revenue, respectively, for the nine months ended September 30, 2024, and 2023, representing period-over-period growth of 27.0% and 31.7% as compared to the corresponding three-month and nine-month periods in 2023, respectively.
Previous report
We had 1,111 thousand and 962 thousand Average Paying User, respectively, for the three months ended September 30, 2024, and 2023, and we had 1,057 thousand and 919 thousand Average Paying Users, respectively, for the nine months ended September 30, 2024, and 2023, representing period-over-period growth of 15.5% and 15.0% as compared to the corresponding three-month and nine-month periods in 2023, respectively.
Previous report
In September 2024, we merged our Engineering, Product, and Design teams under the leadership of our Chief Product Officer. By combining these three complementary teams into one, we expect to streamline decision-making, enable faster iteration, and create a better experience for our users.
Previous report
•Revenue of $89.3 million and $70.3 million, respectively. The increase for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was $19.0 million, or 27.0%.
Previous report
Consolidated Results for Nine Months Ended September 30, 2024 and 2023
Previous report
For the nine months ended September 30, 2024 and 2023, we generated:
Previous report
•Revenue of $247.0 million and $187.6 million, respectively. The increase for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was $59.4 million, or 31.7%.
Previous report
•Net loss of $7.1 million and $11.0 million, respectively. This resulted in a net loss margin of 2.9% and 5.9%, respectively. The net loss increase for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was $3.9 million, or 35.0%.
Previous report
•Adjusted EBITDA of $108.7 million and $81.5 million, respectively. This resulted in an Adjusted EBITDA margin of 44.0% and 43.4%, respectively. The Adjusted EBITDA increase for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 was $27.2 million, or 33.4%. See“—Non-GAAP Financial Measures”below for more details on the calculations and reconciliations.
Previous report
The Business Combination and Public Company Costs
Previous report
On May 9, 2022, Grindr, Tiga Acquisition Corp. (“Tiga”) and Tiga Merger Sub LLC, a Delaware limited liability company and direct and wholly-owned subsidiary of Tiga (“Merger Sub I”) entered into that certain Agreement and Plan of Merger (the “Original Merger Agreement”), as amended by that certain First Amendment to Agreement and Plan of Merger, dated as of October 5, 2022, by and among Grindr, Tiga, Merger Sub I and Tiga Merger Sub II LLC, a Delaware limited liability company and direct and wholly-owned subsidiary of Tiga (“Merger Sub II”) (together with the Original Merger Agreement, the “Merger Agreement”) pursuant to which Grindr was merged with and into Merger Sub I, with
Previous report
Grindr as the surviving entity and a wholly owned subsidiary of Tiga (the “First Merger”), and promptly afterwards and as part of the same overall transaction as the First Merger, the merger of such surviving company with and into Merger Sub II, with Merger Sub II being the surviving entity and a wholly owned subsidiary of Tiga (the “Second Merger”), in accordance with the terms and conditions of the Merger Agreement. The transaction was completed on November 18, 2022 (the “Business Combination”). Grindr was deemed the accounting predecessor and the combined entity is the successor registrant with the Securities and Exchange Commission (“SEC”), meaning that Grindr’s condensed consolidated financial statements for previous periods will be disclosed in Grindr’s future periodic reports filed with the SEC.
Previous report
While the legal acquirer in the Merger Agreement was Tiga, for financial accounting and reporting purposes under the accounting principles generally accepted in the United States of America (“U.S. GAAP”), Legacy Grindr was the accounting acquirer and the Business Combination was accounted for as a “reverse recapitalization.” A reverse recapitalization (i.e., a capital transaction involving the issuance of stock by Tiga for the stock of Grindr) did not result in a new basis of accounting, and the consolidated financial statements of the combined entity represent the continuation of the consolidated financial statements of Legacy Grindr in many respects. Accordingly, the consolidated assets, liabilities and results of operations of Legacy Grindr became the historical consolidated financial statements of Grindr, and Tiga’s assets, liabilities, and results of operations were consolidated with Legacy Grindr beginning on the acquisition date. Operations prior to the Business Combination are presented as those of Legacy Grindr and will be presented as such in future reports. The net assets of Tiga were recognized at historical cost (which was consistent with carrying value), with no goodwill or other intangible assets recorded upon execution of the Business Combination.
Previous report
As a consequence of the Business Combination, Grindr became the successor to an SEC-registered and NYSE-listed company, which required Grindr to hire additional personnel and implement procedures and processes to address public company regulatory requirements and customary practices. Grindr has incurred and expects to incur additional annual expenses as a public company for, among other things, directors’ and officers’ liability insurance, director fees and additional internal and external accounting, legal and administrative resources, including increased audit and legal fees. The Company is classified as an Emerging Growth Company, as defined under the Jumpstart Our Business Act (the “JOBS Act”), which was enacted on April 5, 2012. As a result of the Business Combination, the Company is provided certain disclosure and regulatory relief, provided by the SEC, as an Emerging Growth Company and Smaller Reporting Company.
Previous report
Grindr’s future results of consolidated operations and financial position may not be comparable to historical results as a result of the Business Combination.
Previous report
How We Generate Revenue
Previous report
Direct Revenue is driven by our subscription revenue and premium add-ons. Our current subscription offerings are Grindr XTRA and Grindr Unlimited. Our subscription revenue has grown through organic user acquisition and the viral network effects enabled by our brand and the quality of our platform. We utilize a freemium model to drive increased user acquisition, subscriber conversions, and monetization on the Grindr platform. We offer premium add-ons on a pay-per-use, or a-la-carte, basis, such as Boost, Roam™, and Right Now. By introducing subscription and premium add-on offerings, we continue to increase our Average Paying Users. For the three and nine months ended September 30, 2024, our Direct Revenue accounted for 86.1% and 85.5% of our total revenue, respectively. For the three and nine months ended September 30, 2023, our Direct Revenue accounted for 87.6% and 86.8% of our total revenue, respectively.
Previous report
Indirect Revenue primarily consists of revenue generated by third parties who pay to advertise to our users. Our advertising offerings provide advertisers with the opportunity to target and directly reach the GBTQ community, a group with significant global purchasing power and economic potential. We have attracted advertisers from a diverse array of industries, including healthcare, entertainment, gaming, travel, and consumer goods. We offer a diverse range of advertising opportunities to advertisers, such as in-app banners, full-screen interstitials, and other customized units, typically on a cost per mille (“CPM”) basis. We contract with a variety of third-party advertising platforms to market and sell a portion of our advertising inventory available on the Grindr platform. We intend to continue to grow our Indirect Revenue through advertising, partnerships, and other non-direct initiatives. For the three and nine months ended September 30, 2024, our Indirect Revenue accounted for 13.9% and 14.5% of our total revenue, respectively. For the three and nine months ended September 30, 2023, our Indirect Revenue accounted for 12.4% and 13.2% of our total revenue, respectively.
Previous report
Non-GAAP Profitability
Previous report
See “— Non-GAAP Financial Measures” below for additional information and a reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDA Margin.
Previous report
See “— Non-GAAP Financial Measures” below for additional information and a reconciliation of net cash provided by operating activities and operating cash flow conversion to free cash flow and free cash flow conversion, respectively.
Previous report
Key Components of Our Results of Operations
Previous report
Revenue for the three months ended September 30, 2024 and 2023, was $89.3 million and $70.3 million, respectively. The increase in revenue for the three months ended September 30, 2024, compared to the three months ended September 30, 2023 was $19.0 million, or 27.0%.
Previous report
For the three months ended September 30, 2024 and 2023, direct revenue was $76.9 million and $61.6 million, respectively. The increase in direct revenue of $15.3 million, or 24.8%, was driven by year-over-year increases in ARPPU of $1.74 and in Average Paying Users of 149 thousand. Year-over-year growth for both ARPPU and Averaging Paying Users is a result of (i) higher conversion of free to paid users as more users responded favorably to shorter duration subscription offerings through the roll out of our weekly Unlimited subscription offerings to all of our users worldwide, (ii) the launch of various packaging and marketing initiatives intended to drive conversation, and (iii) continued MAU growth. Weekly Unlimited was introduced late in the first quarter of 2024, giving our users a second lower priced option in addition to the weekly XTRA subscription. ARPPU increased by 8.2%, or $1.74, to $23.07 for the three months ended September 30, 2024, from $21.33 for the three months ended September 30, 2023. Our ARPPU increased as a result of improved product mix, with higher revenue generated by subscription products with higher average monthly-equivalent price, such as weekly Unlimited. We expect ARPPU to fluctuate in the near-term as we continue to test different subscription options across different price points and focus on generating more Paying Users. For the three months ended September 30, 2024, Average Paying Users increased by 149 thousand, from 962 thousand for the three months ended September 30, 2023, to 1,111 thousand for the three months ended September 30, 2024.
Previous report
For the three months ended September 30, 2024 and 2023, indirect revenue was $12.4 million and $8.7 million, respectively. The increase in indirect revenue of $3.7 million, or 42.5%, was primarily driven by growth in revenue from interstitial advertising from our third-party advertising platforms as new partners were added and use of interstitial advertising continued, as well as growth in direct brand sales as the number of direct brand advertisers on the platform grew.
Previous report
Revenue for the nine months ended September 30, 2024 and 2023, was $247.0 million and $187.6 million, respectively. The increase in revenue for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, was $59.4 million increase, or 31.7%.
Previous report
Revenue from North America increased by $33.7 million, or 29.2%, for the nine months ended September 30, 2024, to $148.9 million as compared to $115.3 million for the nine months ended September 30, 2023. During this same period, revenue from Europe increased by $16.0 million, or 36.0%, to $60.6 million in the nine months ended September 30, 2024, as compared to $44.6 million in the nine months ended September 30, 2023. Revenue from the remainder of the world increased by $9.7 million, or 35.0%, to $37.5 million in the nine months ended September 30, 2024, as compared to $27.8 million in the nine months ended September 30, 2023.
Previous report
Cost of revenue for the nine months ended September 30, 2024 and 2023, was $63.5 million and $49.2 million, respectively. The $14.3 million increase, or 29.1%, was primarily due to growth in app store distribution fees of $11.0 million (consistent with direct revenue growth), and increased infrastructure costs of $3.6 million.
Previous report
Selling, general and administrative expense for the three months ended September 30, 2024 and 2023, was $25.0 million and $16.4 million, respectively. The $8.6 million increase, or 52.4%, was primarily due to higher personnel related expenses of $6.0 million, including an increase of $2.2 million in stock-based compensation expense, primarily related to executive incentive awards, and an increase of $3.8 million in employee compensation. There was also an increase of $1.4 million in marketing expenses.
Previous report
Selling, general and administrative expense for the nine months ended September 30, 2024 and 2023, was $76.4 million and $52.5 million, respectively. The $23.9 million increase, or 45.5%, was primarily due to higher personnel related expenses of $17.1 million, including an increase of $10.4 million in stock-based compensation expense, primarily related to executive incentive awards, and an increase of $6.7 million in employee compensation. There was also an increase of $3.0 million in contractor expenses to support scaling our team and an increase of $3.8 million in marketing expenses.
Previous report
Product development expense for the three months ended September 30, 2024 and 2023, was $8.8 million and $13.3 million, respectively. The $4.5 million decrease, or 33.8% is primarily related to a $5.9 million decrease in personnel-related expenses, primarily driven by $6.5 million of severance expense incurred during the three months ended September 30, 2023 related to the RTO Plan. This decrease is partially offset by a $1.7 million increase in contractor fees to support the engineering function while scaling the size of our team.
Previous report
Product development expense for the nine months ended September 30, 2024 and 2023, was $22.3 million and $25.0 million, respectively. The $2.7 million decrease, or 10.8% was primarily related to a $7.7 million decline in personnel-related expenses primarily driven by $7.5 million of severance expense incurred during the nine months ended September 30, 2023 related to our RTO Plan. This decrease was partially offset by $4.7 million increase in contractor fees to support the engineering function while scaling the size of our team.
Previous report
Interest expense, net for the three months ended September 30, 2024 and 2023, was $6.4 million and $12.0 million, respectively. The $5.6 million decrease, or 46.7%, was primarily due to lower debt balances and lower interest rates under the 2023 Credit Agreement entered into in November 2023.
Previous report
Interest expense, net for the nine months ended September 30, 2024 and 2023, was $20.3 million and $35.7 million, respectively. The $15.4 million decrease, or 43.1%, was primarily due to lower debt balances and lower interest rates under the 2023 Credit Agreement entered into in November 2023.
Previous report
Other income (expense), net
Previous report
Other expense, net for the nine months ended September 30, 2024 and 2023, was $0.3 million and $0.1 million, respectively.
Previous report
Gain (loss) in fair value of warrant liability represents the change in the fair value of our public and private warrants (the “Warrants”) between each reporting period. The Warrants were remeasured to a fair value of $113.2 million as of September 30, 2024, because of the change in our public warrant price. For the three and nine months ended September 30, 2024, we recognized a gain of $8.2 million and a loss of $45.6 million, respectively. For the three and nine months ended September 30, 2023, we recognized a loss of $3.4 million and $11.6 million, respectively, related to the increase in our public warrant price between reporting periods.
Previous report
Income tax provision for the three months ended September 30, 2024 and 2023, was a provision of $5.6 million and $1.3 million, respectively. The $4.3 million increase, or 330.8%, was primarily due to changes in the comparable quarters income and computed annual effective tax rate, including changes in the forecast of income, nondeductible fair value adjustments on the change in the warrant liability, change in valuation allowance, limitations on the deduction of officer compensation, foreign derived intangible income deduction, and research and development credits.
Previous report
Income tax provision for the nine months ended September 30, 2024 and 2023, was $13.2 million and $2.7 million, respectively. The $10.5 million increase, or 388.9%, was primarily due to changes in year over year quarter to date income, and changes in the computed annual effective tax rate, including changes in the forecast of income, nondeductible fair value adjustments on the change in the warrant liability, change in valuation allowance, limitations on the deduction of officer compensation, foreign derived intangible income deduction, and research and development credits.
Previous report
Net income (loss) for the three months ended September 30, 2024 and 2023, was income of $24.7 million and a loss of $0.4 million, respectively. The change of $25.1 million is mainly due to a $19.1 million increase in revenue, $11.6 million benefit in the change in fair value of warrant liability, and $5.6 million decrease in interest expense; partially offset by a $7.3 million increase in operating expenses and $4.3 million increase in income tax provision.
Showing the first 40 of 47 passages. Open the source sections for the rest.
Reworded paragraphs (48)
Previous wording
Grindr Inc.’s (“Grindr” or the “Company”) mission is to build the Global Gayborhood in Your Pocket™, and, through its success, to make a world where the lives of our global community are free, equal, and just. We manage and operate the Grindr platform, a global social network platform serving and addressing the needs of gay, bi, and sexually explorative people around the world. We had 14.6 million Average MAUs and 1,111 thousand Average Paying Users for the three months ended September 30, 2024, as compared to 13.5 million Average MAUs and 962 thousand Average Paying Users for the three months ended September 30, 2023. We had 14.1 million Average MAUs and 1,057 thousand Average Paying Users for the nine months ended September 30, 2024, as compared to 13.1 million Average MAUs and 919 thousand Average Paying Users for the nine months ended September 30, 2023.
Current wording
Grindr Inc.’s (“Grindr”, “we”, “us”, “our” or the “Company”) mission is to build the Global Gayborhood in Your Pocket™, and, through our success, to make a world where the lives of our global LGBTQ community are free, equal, and just. We manage and operate the Grindr platform, a global social networking platform primarily serving and addressing the needs of gay, bisexual, and sexually explorative adults around the world. We had 14.6 million Average MAUs and 1.2 million Average Paying Users for the three months ended March 31, 2025, as compared to 13.7 million Average MAUs and 1.0 million Average Paying Users for the three months ended March 31, 2024. Through gayborhood expansion initiatives, we are developing new products for users to engage with the Grindr platform, which include new partnership-based digital versions of services typically found in physical gayborhoods. Our social impact division, Grindr for Equality, advances human rights, health, and safety for millions of lesbian, gay, bisexual, transgender, and queer (“LGBTQ”) people in partnership with organizations in every region of the world.
Previous wording
The Grindr mobile application is free to download and provides certain services and features to Grindr’s users at no cost. We also offer a variety of additional controls and features for users who enroll in our paid subscriptions and add-on products, including Grindr XTRA and Grindr Unlimited. A substantial portion of our revenue is from direct revenue, representing 86.1% and 85.5% of total revenue for the three and nine months ended September 30, 2024, respectively. Direct revenue is derived directly from users in the form of subscription fees, providing our users access to a variety of features for the period of their subscription, or in the form of add-ons for pay-per-use access to premium features. Leveraging strong brand awareness and our significant user network stemming from our first mover advantage in the GBTQ social networking industry, our historical growth in number of users has been driven primarily by word-of-mouth referrals and other organic means. Through gayborhood expansion initiatives, we are developing new products for users to engage with the Grindr platform, which include new partnership-based digital versions of services typically found in physical gayborhoods. Our social impact division, Grindr for Equality, advances human rights, health, and safety for millions of LGBTQ people in partnership with organizations in every region of the world.
Current wording
The Grindr mobile application is free to download and provides certain services and features to Grindr’s users at no cost. We also offer a variety of additional controls and features for users who enroll in our paid subscriptions and add-on products. A substantial portion of our revenue is from direct revenue, representing 85.2% and 85.4% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Direct revenue is derived from users in the form of subscription fees, providing our users access to a variety of features for the period of their subscription. Our current subscription offerings are Grindr XTRA and Grindr Unlimited. We utilize a freemium model to drive increased user acquisition, subscriber conversions, and monetization on the Grindr platform. We also offer premium add-ons on a pay-per-use, or a-la-carte, basis. Leveraging strong brand awareness and our significant user network stemming from our first mover advantage in the gay, bisexual, transgender, and queer (“GBTQ”) social networking industry, our historical growth in number of users has been driven primarily by word-of-mouth referrals and other organic means.
Previous wording
In addition to our revenue generated from subscription fees and premium add-ons, we also generate indirect revenue, representing 13.9% and 14.5% of total revenue for the three and nine months ended September 30, 2024, respectively. Indirect revenue includes both first-party and third-party advertising. We provide advertisers with the opportunity to directly target and reach our community. Advertisers on our Grindr platform span across many different industries, including healthcare, entertainment, gaming, travel, and consumer goods. We offer our partners a diverse range of advertising opportunities, including in-app banners, full-screen interstitials, and other customized units, typically sold on a number of impressions basis. Additionally, we contract with a variety of third-party advertising platforms to market and sell digital advertising inventory available on the Grindr platform. We will continue to evaluate opportunities to increase advertising inventory by both enhancing and differentiating our advertising offerings in addition to scaling our advertising volume.
Current wording
In addition to our revenue generated from subscription fees and premium add-ons, we also generate indirect revenue, representing 14.8% and 14.6% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Indirect revenue includes both first-party and third-party advertising. We provide advertisers with the opportunity to directly reach the GBTQ community, a group with significant global purchasing power and economic potential. We have attracted advertisers from a diverse array of industries, including healthcare, entertainment, gaming, travel, and consumer goods. We offer our partners a diverse range of advertising opportunities to advertisers, including in-app banners, full-screen interstitials, and other customized units, typically sold on a cost per mille (“CPM”) basis. Additionally, we contract with a variety of third-party advertising platforms to market and sell digital advertising inventory available on the Grindr platform. We will continue to evaluate opportunities to increase advertising inventory by both enhancing and differentiating our advertising offerings in addition to scaling our advertising volume.
Previous wording
While we have users in over 190 countries and territories, our core markets are currently North America and Europe, from which together we derived 84.8% and 85.2% of our total revenues for the nine months ended September 30, 2024 and 2023, respectively. We intend to grow our user base and revenues by continuing to introduce new and innovative products and services to all of our users across the globe.
Current wording
While we have users in over 190 countries and territories, our core markets are currently North America and Europe, from which we derived 84.0% and 84.4% of our total revenues for the three months ended March 31, 2025 and 2024, respectively. We intend to grow our user base and revenues by continuing to introduce new and innovative products and services to all of our users across the globe.
Previous wording
On average, profiles on our platform sent 416.6 million and 339.1 million daily messages for the three months ended September 30, 2024, and 2023, respectively, and 420.1 million and 329.3 million daily messages for the nine months ended September 30, 2024, and 2023, respectively.
Current wording
On average, profiles on our platform sent over 338.1 and 367.2 million daily messages for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
In July 2023, the Communications Workers of America AFL-CIO (“CWA”) filed an election petition with the National Labor Relations Board (“NLRB”) seeking to hold a representation election for certain classifications of our employees. CWA subsequently filed several unfair labor practice charges against us with the NLRB, including a request for injunctive relief under Sec. 10(j) of the National Labor Relations Act. Regarding the election petition, the NLRB conducted a secret mail-ballot election and held partial vote counts in November and December 2023. As of the date of filing of this Quarterly Report on Form 10-Q, the NLRB has not completed tallying all the votes from the election as there are numerous outstanding challenged ballots. On November 1, 2024, the local regional office of NLRB issued a complaint on the unfair labor practice charges, which is scheduled for a hearing in March 2025. This complaint is the first step in the administrative process and is not a finding of any wrongdoing, nor is it a decision or ruling of the NLRB.
Current wording
In July 2023, the Communications Workers of America AFL-CIO (“CWA”) filed an election petition with the National Labor Relations Board (“NLRB”) seeking to hold a representation election for certain classifications of our employees. CWA subsequently filed several unfair labor practice charges against us with the NLRB, including a request for injunctive relief under Sec. 10(j) of the National Labor Relations Act. Regarding the election petition, the NLRB conducted a secret mail-ballot election and held partial vote counts in November and December 2023. As of the date of filing of this Quarterly Report, the NLRB has not completed tallying all the votes from the election as there are numerous outstanding challenged ballots. In addition, on November 1, 2024, the local regional office of NLRB issued a complaint on the unfair labor practice charges, which is scheduled for a hearing in May 2025. This complaint is the first step in the administrative process and is not a finding of any wrongdoing, nor is it a decision or ruling of the NLRB.
Previous wording
•Adjusted EBITDA of $40.1 million and $32.6 million, respectively. This resulted in an Adjusted EBITDA margin of 44.9% and 46.4%, respectively. The Adjusted EBITDA increase for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was $7.5 million, or 23.0%. See “—Non-GAAP Financial Measures” below for more details on the calculations and reconciliations.
Current wording
•Adjusted EBITDA of $40.7 million and $31.6 million, respectively. The increase for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, was $9.1 million, or 28.8%. This resulted in an Adjusted EBITDA margin of 43.3% and 41.9%, respectively. See“—Non-GAAP Financial Measures—Adjusted EBITDA”below for more details on the calculations and reconciliations.
Previous wording
(1)See “—Non-GAAP Financial Measures” below for additional information and a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures.
Current wording
(1)See “—Non-GAAP Financial Measures” below for additional information and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
Previous wording
•Average Paying Users. A Paying User is a user that has purchased or renewed a Grindr subscription and/or purchased a premium add-on on the Grindr platform. We calculate Average Paying Users by adding up the number of Paying Users in each day and then dividing that number by the number of days in the relevant measurement period. A Paying User who is both a subscriber and an add-on purchaser in the same day will be counted as one Paying User. Duplicate Paying Users may exist if the same individual holds more than one Grindr subscription during the same period. We are focused on building new products and improving on existing ones to drive payer conversion. We believe Average Paying Users is a useful metric for assessing the health of our business.
Current wording
•Average Paying Users. A Paying User is a user that has purchased or renewed a Grindr subscription and/or purchased a premium add-on on the Grindr platform. We calculate Average Paying Users by adding up the number of Paying Users in each day and then dividing that number by the number of days in the relevant measurement period. A Paying User who is both a subscriber and an add-on purchaser on the same day will be counted as one Paying User. Duplicate Paying Users may exist if the same individual holds more than one Grindr subscription during the same period. We are focused on building new products and improving on existing ones to drive payer conversion. We believe Average Paying Users is a useful metric for assessing the health of our business.
Previous wording
•Average MAUs. A Monthly Active User (“MAU”) is a unique device that demonstrates activity on the Grindr platform during any given calendar month. Activity on the platform is defined as opening the app, sending or receiving a chat, or viewing another person's profile. We also exclude devices with linked profiles banned for spam. We calculate Average MAUs as a monthly average, by counting the total number of MAUs in each calendar month and then dividing by the number of months in the relevant period. We use Average MAUs to measure the number of active users on our platform on a monthly basis. We believe Average MAUs is a useful metric for assessing the health of our business and our growth in users.
Current wording
•Average MAUs. A Monthly Active User (“MAU”) is a unique device that demonstrates activity on the Grindr platform during any given calendar month. Activity on the platform is defined as opening the app, sending or receiving a chat, or viewing another person's profile. We exclude devices with linked profiles banned for spam. We calculate Average MAUs as a monthly average, by counting the total number of MAUs in each calendar month and then dividing by the number of months in the relevant period. We use Average MAUs to measure the number of active users on our platform on a monthly basis. We believe Average MAUs is a useful metric for assessing the health of our business and our growth in users.
Previous wording
•ARPPU. We calculate Average Revenue Per Paid User (“ARPPU”) based on Direct Revenue in any measurement period, divided by Average Paying Users in such a period and then divided by the number of months in the period. We believe ARPPU is a useful metric for assessing the growth of our business and future revenue trends.
Current wording
•ARPPU. We calculate Average Direct Revenue Per Paid User (“ARPPU”) based on Direct Revenue in any measurement period, divided by Average Paying Users in such a period and then divided by the number of months in the period. We believe ARPPU is a useful metric for assessing the growth of our business and future revenue trends.
Previous wording
•ARPU. We calculate Average Revenue Per User (“ARPU”) based on total revenue in any measurement period, divided by our Average MAUs in such a period divided by the number of months in the period. We believe ARPU is a useful metric for assessing the growth of our business and future revenue trends.
Current wording
•ARPU. We calculate Average Total Revenue Per User (“ARPU”) based on total revenue in any measurement period, divided by our Average MAUs in such a period divided by the number of months in the period. We believe ARPU is a useful metric for assessing the growth of our business and future revenue trends.
Previous wording
Our results of operations and financial condition have been, and will continue to be, affected by a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section titled“Risk Factors” included under Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023, as amended.
Current wording
Our results of operations and financial condition have been, and will continue to be, affected by a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as amended.
Previous wording
We acquire new users through word of mouth as well as through investing in generating brand awareness and affinity. We convert these users to Paying Users by offering premium features that increase the probability of developing meaningful connections, improve the user experience, offer greater control over the experience, and provide the ability to have an ad-free experience. We had 1,111 thousand and 1,057 thousand Average Paying Users for the three and nine months ended September 30, 2024, respectively, representing period-over-period growth of 15.5% and 15.0% as compared to the three-month and nine-month periods in 2023, respectively. We grow Paying Users by converting new and existing users to purchasers of one of our subscription plans and/or our premium add-on offerings. As we scale and our community grows larger, we are able to facilitate more meaningful interactions as a result of the wider selection of potential connections. This, in addition to the continuous offering of premium features, increases our product value and can increase conversion to one of our paid products. Our revenue growth depends on growth in Paying Users. While we believe we are in the early days of our opportunity, at some point we may face challenges increasing our Paying Users, including competition from alternative products and services and lower adoption of certain product features.
Current wording
We acquire new users through investments in generating brand awareness, as well as through word of mouth from existing users and others. We convert these users to Paying Users by offering premium features that maximize the probability of developing meaningful connections, improve the user experience, and provide more control over the experience. For the three months ended March 31, 2025 and 2024, our Average Paying Users were 1.2 million and 1.0 million, respectively, representing an increase of 15.5% period-over-period. We grow Paying Users by acquiring new users and converting new and existing users to purchasers of one of our subscription plans or our add-on offerings. As we scale and our community grows larger, we seek to facilitate more meaningful interactions as a result of the wider selection of potential connections. This in turn increases our product value and can increase conversion to one of our paid products. Our revenue growth depends on growth in Paying Users. While we believe we are in the early days of our opportunity, at some point we may face challenges increasing our Paying Users, including competition from alternative products and services and lower adoption of certain product features.
Previous wording
Our business relies on our ability to attract and retain talent, including, but not limited to, engineers, data scientists, product designers and product managers. As of September 30, 2024, we had 148 employees globally, 144 of which were full-time employees. We believe that many people want to work at a company committed to creating a world that is fair, equal, and just for the global LGBTQ community and that aligns with their personal values, and therefore our ability to recruit and retain talent is aided by our mission and brand reputation. We compete for talent within the technology industry.
Current wording
Our business relies on our ability to attract and retain talent, including, but not limited to, engineers, data scientists, product designers and product managers. As of March 31, 2025, we had 146 employees globally, 142 of which were full-time employees. In 2024 we expanded and enhanced our team with new employees and contractors. In doing so, we significantly grew the size of our engineering team, including the addition of a dedicated contractor team in Colombia consisting of 24 full-time engineers as of March 31, 2025. We will continue to selectively supplement immediate capacity and product development needs with contractors, particularly in supporting our engineering function. By building a performance-driven culture, we want to unleash Grindr’s and each of our employees’ full potential. In 2025, we intend to continue to focus on adding talent at a measured pace, especially in applied science, data engineering, and artificial intelligence and machine learning. We believe that many people want to work at a company committed to creating a world that is fair, equal, and just for the global LGBTQ community and that aligns with their personal values, and therefore our ability to recruit and retain talent is aided by our mission and brand reputation. We compete for talent within the technology industry.
Previous wording
In 2023 our leadership team announced a transition to a hybrid work model involving a multi-phase return-to-office plan (“RTO Plan”) beginning in the fall of 2023. Our hybrid work model requires employees to work two days per week in offices where their respective teams are based. The RTO Plan provided employees with a one-time relocation package to support relocation if necessary, or separation packages for employees who chose not to relocate or participate in our RTO Plan. The RTO Plan has temporarily resulted in lower headcount, resulting in a higher reliance on contractors and other services, higher severance expenses in 2023, and lower people related costs. During 2024 and 2025, we are expanding and enhancing our team while selectively supplementing immediate capacity and product development needs with contractors, particularly in supporting our engineering function.
Current wording
In 2023, our leadership team announced a transition to a hybrid work model involving a multi-phase return-to-office plan (“RTO Plan”) beginning in the fall of 2023, which was largely completed by January 2024 and was fully concluded by April 30, 2025. Our hybrid work model requires employees to work two days per week in offices where their respective teams are based. The RTO Plan provided employees with a one-time relocation package to support relocation if necessary, or separation packages for employees who chose not to relocate or participate in our RTO Plan.
Previous wording
The Grindr platform has MAUs in over 190 countries and territories. Our international revenue represents 43.1% and 42.5% of total revenue for the three and nine months ended September 30, 2024, respectively, and 42.4% and 41.5% of total revenue for the three and nine months ended September 30, 2023, respectively. We vary our pricing to align with relative value to local purchasing power and competitors while also maximizing our monetization opportunities. Our international revenue is typically earned in local currencies. In addition, the mobile app platforms we work with utilize internally generated foreign exchange rates that may differ from other foreign exchange rates, which could impact our results of operations.
Current wording
The Grindr platform has MAUs in over 190 countries and territories. Our international revenue represents 41.2% and 42.4% of total revenue for the three months ended March 31, 2025 and 2024, respectively. We vary our pricing to align with relative value to local purchasing power and competitors. Our international business typically earns revenue in local currencies. In addition, some of the platforms we work with utilize internally generated foreign exchange rates that may differ from other foreign exchange rates, which could impact our results of operations.
Previous wording
Direct Revenue. Direct revenue is reported gross of distribution fees for subscriptions and premium add-ons as we are the primary party obligated in our transactions with customers, and we act as the principal. Our subscription revenue is generated through the sale of subscriptions that are currently offered or renewed in one-week, one-month, three-month, six-month and twelve-month periods. Subscribers pay in advance through third-party platforms, including Apple, Google Play, and Stripe, according to our terms and conditions. Subscription revenues, net of taxes and chargebacks, are recognized ratably over the term of the subscription. Premium add-on revenue is generated through the sale of an add-on feature on a pay-per-use, or a-la-carte, basis. Premium features are activated upon purchase and are available for a short duration, generally, within one day. Revenue from premium add-ons is recognized upon purchase of the premium add-on. Direct revenue is recorded net of taxes, credits, and chargebacks. Customers pay in advance, primarily through mobile app stores, and, subject to certain conditions identified in the Company’s terms and conditions, generally all purchases are final and nonrefundable.
Current wording
Direct Revenue. Direct revenue is reported gross of distribution fees for subscriptions and premium add-ons as we are the primary party obligated in our transactions with customers, and we act as the principal. Our subscription revenue is generated through the sale of subscriptions that are currently offered or renewed in one-week, one-month, three-month, six-month and twelve-month periods. Customers pay in advance, primarily through mobile app stores, including Apple and Google Play, and, subject to certain conditions identified in the Company’s terms and conditions, generally all purchases are final and nonrefundable. Subscription revenues are recognized ratably over the term of the subscription. Premium add-on revenue is generated through the sale of an add-on feature on a pay-per-use, or a-la-carte, basis. Premium features are activated upon purchase and are available to use by the customer for a short duration, generally, within one day. Revenue from premium add-ons is recognized upon usage of the premium add-on. Direct revenue is recorded net of taxes, credits, and chargebacks.
Previous wording
Product development expense. Product development expense consists primarily of employee-related and contractor costs for personnel engaged in the design, development, testing, enhancement of product offerings, related technology, and related software costs.
Current wording
Product development expense. Product development expense consists primarily of employee-related and contractor costs for personnel engaged in the design, development, testing, and enhancement of product offerings, related technology, and related software costs.
Previous wording
Depreciation and Amortization. Depreciation is primarily related to computers, equipment, and leasehold improvements. Amortization is primarily related to capitalized software, acquired definite-lived intangible assets (customer relationships, technology, etc.).
Current wording
Depreciation and Amortization. Depreciation is primarily related to computers, equipment, and leasehold improvements. Amortization is primarily related to capitalized software development costs and acquired definite-lived intangible assets (customer relationships, technology, etc.).
Previous wording
Interest expense, net. Interest expense, net consists of interest expense incurred in connection with our long-term debt and revolving credit facility, net of interest income received on a promissory note to a member.
Current wording
Interest expense, net. Interest expense, net consists of interest expense incurred in connection with our long-term debt and revolving credit facility net of interest earned on cash and cash equivalents including money market funds and U.S. treasury bills.
Previous wording
Gain (loss) in fair value of warrant liability. Gain (loss) in fair value of warrant liability represents the change in fair value of our public and private warrants. As the private warrants are substantially similar to the public warrants, all of the warrants are remeasured from the publicly traded quotes from the active market.
Current wording
Gain (loss) in fair value of warrant liability. Gain (loss) in fair value of warrant liability represents the change in fair value of our public and private warrants. As the private warrants are substantially similar to the public warrants, all of the warrants are remeasured from the publicly traded quotes from the active market. In February 2025, we completed the redemption of all outstanding public and private warrants.
Previous wording
Three and Nine Months Ended September 30, 2024, Compared to Three and Nine Months Ended September 30, 2023
Current wording
Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous wording
For the nine months ended September 30, 2024 and 2023, direct revenue was $211.2 million and $162.9 million, respectively. The increase in direct revenue of $48.3 million, or 29.7% was driven by the year-over-year increase in ARPPU of $2.51 and in Average Paying Users of 138 thousand. Year-over-year growth for both ARPPU and Averaging Paying Users is largely a result of rolling out our weekly XTRA and weekly Unlimited subscription offerings (“Weeklies”), to all of our users worldwide, the launch of various packaging and marketing initiatives to drive conversion, as well as a result of continued MAU growth. Weekly XTRA was introduced late in the second quarter of 2023 and weekly Unlimited was introduced late in the first quarter of 2024. Introducing our shorter duration Weeklies products gave our users lower priced options for both XTRA and Unlimited subscriptions. ARPPU increased by 12.7%, or $2.51, to $22.20 for the nine months ended September 30, 2024, from $19.69 for the nine months ended September 30, 2023. Our ARPPU increased mainly as a result of improved product mix with higher revenue from subscription products with higher average monthly price. We expect ARPPU to fluctuate in the near-term as we continue to test different subscription options across different price points and focus on generating more Paying Users. For the nine months ended September 30, 2024, Average Paying Users increased by 138 thousand, from 919 thousand for the nine months ended September 30, 2023, to 1,057 thousand for the nine months ended September 30, 2024.
Current wording
For three months ended March 31, 2025 and 2024, direct revenue was $80.1 million and $64.4 million, respectively. The increase in direct revenue of $15.7 million, or 24.4%, was driven by the period-over-period increases in both ARPPU of $1.61 and Average Paying Users of 157 thousand. Period-over-period growth for revenue was driven by enhanced paywall optimizations and merchandising strategies, which strengthened subscription adoption across our XTRA and Unlimited tiers, and fueled continued demand for our premium add-ons. Weekly Unlimited was introduced late in the first quarter of 2024 and there is a continued period-over-period growth of our weekly XTRA subscription offering which benefited from the international rollout of our Recommendations: More Quality Profiles features. Our shorter duration weekly products gave our users lower priced options for both XTRA and Unlimited subscriptions. ARPPU increased by 7.6%, or $1.61, to $22.86 for the three months ended March 31, 2025, from $21.25 for the three months ended March 31, 2024. Our ARPPU increased as a result of improved product mix, with higher revenue generated by subscription products with higher average monthly-equivalent price, such as weekly Unlimited. We expect ARPPU to fluctuate in the near-term as we continue to test different subscription options across different price points and focus on generating more Paying Users. For the three months ended March 31, 2025, Average Paying Users increased by 157 thousand, from 1.0 million for the three months ended March 31, 2024, to 1.2 million for the three months ended March 31, 2025.
Previous wording
For the nine months ended September 30, 2024 and 2023, indirect revenue was $35.8 million and $24.7 million, respectively. The increase in indirect revenue of $11.1 million, or 44.9% was primarily driven by growth in revenue from third-party advertising platforms.
Current wording
For three months ended March 31, 2025 and 2024, indirect revenue was $13.9 million and $11.0 million, respectively. The increase in indirect revenue of $2.9 million, or 26.4%, was primarily driven by introducing new ad formats, further optimizing and improving our ad tech, and onboarding new third-party advertising partners.
Previous wording
Revenue from North America increased by $10.8 million, or 25.3%, for the three months ended September 30, 2024, to $53.3 million as compared to $42.6 million for the three months ended September 30, 2023. During this same period, revenue from Europe increased by $5.4 million, or 30.8%, to $22.8 million in the three months ended September 30, 2024, as compared to $17.4 million in the three months ended September 30, 2023. Revenue from the remainder of the world increased by $2.9 million, or 28.6%, to $13.2 million in the three months ended September 30, 2024, as compared to $10.3 million in the three months ended September 30, 2023.
Current wording
Revenue from North America increased by $12.3 million, or 27.0%, for the three months ended March 31, 2025, to $57.8 million as compared to $45.5 million for the three months ended March 31, 2024. During this same period, revenue from Europe increased by $3.0 million, or 16.8%, to $21.1 million in the three months ended March 31, 2025, as compared to $18.1 million in the three months ended March 31, 2024. Revenue from the remainder of the world increased by $3.3 million, or 27.8%, to $15.0 million in the three months ended March 31, 2025, as compared to $11.7 million in the three months ended March 31, 2024.
Previous wording
Cost of revenue for the three months ended September 30, 2024 and 2023, was $22.9 million and $18.2 million, respectively. The $4.7 million increase, or 25.8%, was primarily due to growth in app store distribution fees of $3.2 million (consistent with direct revenue growth), and increased infrastructure costs of $1.4 million.
Current wording
Cost of revenue for the three months ended March 31, 2025 and 2024, was $24.5 million and $19.6 million, respectively. The $4.9 million increase, or 25.0%, was primarily due to growth in distribution fees of $3.6 million (consistent with direct revenue growth), and increased infrastructure costs of $1.0 million.
Previous wording
Depreciation and amortization for the three months ended September 30, 2024 and 2023, was $4.2 million and $5.8 million, respectively. The $1.6 million decrease, or 27.6%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. There was a $1.1 million decrease due to customer relationship intangibles that were amortized under an accelerated amortization schedule, with higher amounts expensed in 2023.
Current wording
Depreciation and amortization for the three months ended March 31, 2025 and 2024, was $3.5 million and $4.1 million, respectively. The $0.6 million decrease, or 14.6%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. There was a $0.9 million decrease due to customer relationship intangibles that were amortized under an accelerated amortization schedule, with higher amounts expensed in 2024.
Previous wording
Other income (expense), net for the three months ended September 30, 2024 and 2023, was income of $0.1 million and expense of $0.4 million, respectively.
Current wording
Other (expense), income, net for the three months ended March 31, 2025 and 2024, was expense of $0.1 million and income of $0.1 million, respectively.
Previous wording
•Net income of $24.7 million and net loss of $0.4 million, respectively. This resulted in a net income margin of 27.6% and a net loss margin of 0.6%, respectively. The increase for the three months ended September 30, 2024, compared to the three months ended September 30, 2023 was $25.1 million.
Current wording
Net income (loss) for the three months ended March 31, 2025 and 2024, was a net income of $27.0 million and a net loss of $9.4 million, respectively. Net income (loss) changed by $36.4 million mainly due to a $18.6 million increase in revenue and $28.6 million change in the fair value change of warrant liability.
Previous wording
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow conversion as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
Current wording
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow conversion as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
Previous wording
Adjusted EBITDA adjusts for the impact of items that we do not consider indicative of the operational performance of our business. We define Adjusted EBITDA as net income (loss) excluding income tax provision (benefit); interest expense, net; depreciation and amortization; stock-based compensation expense; transaction-related costs; gain (loss) in fair value of warrant liability; and severance expense, litigation-related costs, and other items, in each case, that are unrelated to our core ongoing business operations. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.
Current wording
Adjusted EBITDA adjusts for the impact of items that we do not consider indicative of the operational performance of our business. We define Adjusted EBITDA as net income (loss) excluding income tax provision; interest expense, net; depreciation and amortization; stock-based compensation expense; change in fair value of warrant liability; and severance expense, litigation-related costs, and other items, in each case, that are unrelated to our core ongoing business operations. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.
Previous wording
Management uses this measure internally to evaluate the performance of our business and this measure is one of the primary metrics by which management and other employees are compensated. We exclude the above items as some are non-cash in nature and others may not be representative of normal operating results. While we believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared and presented in accordance with U.S. GAAP.
Current wording
Our management uses this measure internally to evaluate the performance of our business and this measure is one of the primary metrics by which management and other employees are compensated. We exclude the above items as some are non-cash in nature and others may not be representative of normal operating results. While we believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute for the related financial information prepared and presented in accordance with U.S. GAAP.
Previous wording
(1)Litigation-related costs primarily represent external legal fees associated with outstanding litigation or regulatory matters, including fees incurred in connection with the potential Norwegian Data Protection Authority fine and CWA unionization.
Current wording
(1)Litigation-related costs that are unrelated to our core ongoing business operations primarily represent external legal fees associated with outstanding litigation or regulatory matters outside of the ordinary course, such as fees incurred in connection with the potential Norwegian Data Protection Authority fine and CWA unionization.
Previous wording
(4)Change in fair value of warrant liability relates to the Warrants that were remeasured as of September 30, 2024 and 2023.
Current wording
(3)Change in fair value of warrant liability relates to the warrants that were remeasured upon exercise or redemption. In February 2025, we completed the redemption of all outstanding warrants.
Previous wording
We define free cash flow as net cash provided by (used in) operating activities less capitalized software and purchases of property and equipment. Free cash flow is an indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after capitalized software development costs and purchases of property and equipment, that can be used to repay debt obligations and/or for strategic initiatives. Free cash flow conversion is calculated by dividing free cash flow for a period by Adjusted EBITDA for the same period. Free cash flow and free cash flow conversion do not represent our residual cash flow available for discretionary purposes and does not reflect our future contractual commitments.
Current wording
We define free cash flow as net cash provided by operating activities less capitalized software development costs and purchases of property and equipment. Free cash flow is an indicator of liquidity that provides information to our management and investors about the amount of cash generated from operations, after capitalized software development costs and purchases of property and equipment, that can be used to repay debt obligations and/or for strategic initiatives. Free cash flow conversion is calculated by dividing free cash flow for a period by Adjusted EBITDA for the same period.
Previous wording
(6)Operating cash flow conversion represents net cash provided by (used in) operating activities as a percentage of net income (loss).
Current wording
(1)Operating cash flow conversion represents net cash provided by operating activities as a percentage of net income (loss).
Previous wording
Cash Flows for the Nine Months Ended September 30, 2024 and 2023
Current wording
Cash Flows for the Three Months Ended March 31, 2025 and 2024
Previous wording
The following table summarizes our total cash and cash equivalents:
Current wording
The following table summarizes our total cash and cash equivalents, and cash flows:
Previous wording
Net cash provided by operating activities is primarily dependent on our revenues and is affected by timing of receipts from subscription and advertising sales. It is also dependent on managing our operating expenses, such as salaries and employee-related costs, selling and marketing expenses, and other general and administrative expenses. We expect to maintain strong operating cash flows given our historical performance. We will continue to try to invest in the right resources to support longer term profitable growth. Our operating cash flows should continue to cover our operating and financing costs.
Current wording
Net cash provided by operating activities are primarily dependent on our revenues affected by timing of receipts from subscription and advertising sales. It is also dependent on managing our operating expenses, such as salaries and employee-related costs, selling and marketing expenses, and other general and administrative expenses. We expect to maintain strong operating cash flows given our historical performance. We will continue to invest in the right resources to support longer term profitable growth. Our operating cash flows should continue to cover our operating and financing costs.
Showing the first 40 of 48 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Free cash flow and free cash flow conversion do not represent our residual cash flow available for discretionary purposes and does not reflect our future contractual commitments.
Current report — wording carried from elsewhere
Cash flows provided by (used in) financing activities
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
We currently generate revenue from two revenue streams—Direct Revenue and Indirect Revenue—both of which are driven by the Grindr platform. Direct Revenue is generated by our users who pay for subscriptions or add-ons to access premium features. Indirect Revenue is generated by third parties who pay us to advertise to our users.
Previous report — wording carried elsewhere
We use Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, and free cash flow conversion, which are non-GAAP measures, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may differ from similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
Previous report — wording carried elsewhere
We define free cash flow as net cash provided by (used in) operating activities less capitalized software, and purchases of property and equipment. Free cash flow conversion is calculated by dividing free cash flow for a period by Adjusted EBITDA for the same period.
Previous report — wording carried elsewhere
Depreciation and amortization for the nine months ended September 30, 2024 and 2023, was $12.6 million and $21.8 million, respectively. The $9.2 million decrease, or 42.2%, was primarily due to acquired intangibles amortization from an acquisition in June 2020. There was a $5.3 million decrease due to technology intangibles that had a three-year useful life which were fully amortized in the second quarter of 2023, and a $3.3 million decrease due to customer relationship intangibles that were amortized under an accelerated amortization schedule, with higher amounts expensed in 2023.
Previous report — wording carried elsewhere
Adjusted EBITDA and Adjusted EBITDA Margin
Previous report — wording carried elsewhere
Adjusted EBITDA adjusts for the impact of items that we do not consider indicative of the operational performance of our business. We define Adjusted EBITDA as net income (loss) excluding income tax provision (benefit); interest expense, net; depreciation and amortization; stock-based compensation expense; transaction-related costs; gain (loss) in fair value of warrant liability; and severance expense, litigation-related costs, and other items, in each case, that are unrelated to our core ongoing business operations. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA for a period by revenue for the same period.
Previous report — wording carried elsewhere
Free Cash Flow and Free Cash Flow Conversion