Grindr Inc. raised its guidance for the current year and said it expects to meet its 2027 targets about 12 months ahead of schedule, signs the company has been succeeding in its strategy to market itself as more than just a dating app for gay men. The company now sees $560 million in revenue and $236 million in adjusted earnings before interest, taxes, depreciation and amortization, it said Thursday in a statement. If those new targets are met, Grindr will reach in 2026 what was supposed to be its 2027 adjusted Ebitda goal, following pledges made at the company's 2024 investor day.
That new sales projection represents 93% of the two-year-old revenue target. Grindr in June will hold its first investor day in three years to outline its next-phase growth trajectory, Chief Executive Officer George Arison said in an interview. The company also plans to roll out its premium "Edge" artificial intelligence-powered subscription plan later in November for $120 a month. "We have a ton of optimism about next year and things beyond that with long-term potential," Arison said, attributing the results to a resilient user base with untapped growth potential.
The shares rose 3.15% in extended trading after closing at $13.64 in New York. Arison, who stepped into the top job in 2022, has endeavored to turn Grindr into a center of culture and community for queer people -- or what he calls the "global gayborhood in your pocket" -- even if its users don't have a real-world gathering place nearby. Today, Grindr users can meet others on the platform as well as find in-person events, gain access to health information, and buy medications like weight loss drugs and wellness products.
The platform is expanding further into HIV treatment and prevention, along with other services like hotel room bookings. For the third quarter, which ended Sept. 30, revenue rose 22% to $141.4 million and adjusted Ebitda of $61.7 million. Analysts, on average, were expecting $135 million in sales and $58.6 million in adjusted earnings, according to Bloomberg-compiled estimates.
The company also said it has closed its $250 million acquisition of Purpose Med Inc., the parent company behind Freddie, which provides telehealth services for Pr EP, a medication that reduces the risk of contracting HIV. Freddie, which had been an advertiser on Grindr, saw almost 25% of its US patients referred through Grindr ads. Freddie currently drives about one-third of Canadian Pr EP prescriptions, according to Arison.
With the purchase complete, Grindr plans to expand the business across the US. "We are very good at scaling things," Arison said. "I think we've shown over the last four years that my team is exceptional with that. Here, we're taking something smaller, with a lot of scale potential, and know it can grow so much, so much more." He added that health opportunities on Grindr in general present an opportunity "five times bigger than what we ever expected.".
Source: Bloomberg Markets · Summarized by HeadlinesBriefing