GRND Earnings Prediction
The chart below shows how GRND performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GRND sees a -4.14% change in stock price 10 days leading up to the earnings, and a +2.74% change 10 days following the report. On the earnings day itself, the stock moves by +0.25%. This data can give you a slight idea of what to expect for the next quarter's release.
GRND Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
89.33M
27.14%
8.48%
Gross Margin
69.60%
5.69%
0.35%
Operating Margin
31.34%
-7.03%
2.35%
Net Margin
27.63%
4556.45%
-201.47%
EPS
0.14
--
-207.69%
No Data Available
GRND Earnings Analysis
Grindr Inc. Corporation (GRND.N) Earnings Conference Call
Positive
Q3 Revenue Surge: Total revenue for Q3 increased by 27% year-over-year to $89 million with an adjusted EBITDA margin of 45%.
Direct Revenue Surge: Direct revenue increased 25% year-over-year to $77 million driven by the continued adoption of the Unlimited Weekly tier as well as better merchandising and paywall optimizations.
User Growth and Penetration: Average paying users in the quarter increased 15% over the prior year to 1.11 million, bringing payer penetration to 7.6% for the quarter.
Indirect Revenue Growth: Indirect revenue for Q3 grew 43% year-over-year to $12 million, driven by strong demand growth in the advertising business.
Cash Flow Performance: We ended the quarter with $39.1 million in cash and cash equivalents, and generated positive free cash flow of $27.9 million, a conversion rate of 69% from our adjusted EBITDA.
Negative
Rising Operating Expenses: 1. Increased Operating Expenses: Operating expenses, excluding cost of revenue, rose by 7% year-over-year to $38 million in Q3 2024, indicating rising costs that could impact profitability.
Declining EBITDA Margin: 2. Declining Adjusted EBITDA Margin: Adjusted EBITDA for Q3 2024 was $40 million, equating to a 45% adjusted EBITDA margin, down from 46% of revenue in the same quarter last year, reflecting a slight decrease in profitability efficiency.
Cash Liquidity Issues: 3. Cash Position Concerns: Grindr ended the quarter with only $39.1 million in cash and cash equivalents, raising concerns about liquidity and financial flexibility in the face of operational challenges.
Technical Debt Challenges: 4. Technical Debt Issues: The company acknowledged ongoing challenges with technical debt, which has been a significant issue due to legacy technology, potentially hindering future product development and user experience improvements.
User Engagement Challenges: 5. Limited User Engagement with New Features: While the Right Now feature was launched, it was noted that not all users are engaging with it frequently, indicating potential challenges in user adoption and satisfaction with new offerings.
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GRND Earning Call Sentiment
Grindr Inc. (GRND) Q3 2024 Earnings Call Transcript
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GRND.N
0.06%Positive
Grindr's earnings call highlights strong revenue growth, improved user engagement, and effective monetization strategies. The raised revenue guidance and positive free cash flow are strong positives. While there are risks like competitive pressures and regulatory issues, the optimistic outlook for 2025 and successful product enhancements mitigate these concerns. The Q&A session did not reveal significant negative sentiment, and the market cap suggests moderate sensitivity. Overall, the positive financial performance and strategic advancements suggest a likely stock price increase in the 2% to 8% range over the next two weeks.
