LOS ANGELES - Grindr (NYSE:GRND) reported fourth-quarter revenue that surpassed analyst expectations but saw its stock decline as its 2025 guidance fell short of investor hopes.
The dating app company posted Q4 revenue of $97.6 million, beating the consensus estimate of $91 million. However, Grindr’s shares fell 2.4% following the earnings release, as investors appeared to focus on the company’s 2025 outlook.
Grindr’s initial 2025 guidance calls for revenue growth of 24% or greater and an adjusted EBITDA margin of 41% or higher. While these figures represent continued growth, they may not have met the market’s more ambitious expectations.
CEO George Arison commented on the company’s performance, stating, "2024 was a landmark year for Grindr. In addition to delivering financial performance significantly above our initial expectations, we set our vision for building the Global Gayborhood, began to execute on an ambitious long-term product roadmap, strengthened our team, and significantly enhanced the functionality and performance of our app for our community."
In a move that could potentially boost investor confidence, Grindr’s board of directors authorized a two-year share repurchase program of up to $500 million of the company’s common stock. This program allows Grindr to make repurchases through various means until March 2027.
The company also completed the redemption of its outstanding warrants, generating $314.1 million in cash proceeds from warrant exercises. Following the redemption, Grindr has no warrants outstanding, simplifying its capital structure.
As Grindr moves into 2025, investors will be closely watching to see if the company can exceed its initial guidance and maintain its growth trajectory in the competitive online dating market.
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