Grindr Inc. · NYSE:GRND
Grindr — Investor Presentation (March 2024)
30 slides from Grindr's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION MARCH 2024 1
Slide 2: Legal Disclosure
LEGAL DISCLOSURE This presentation and the accompanying oral presentation have been prepared by Grindr Inc. (“Grindr,” and together with its subsidiaries, the “Company”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed a
Slide 3: Our Company
MARCH 2024 OUR COMPANY
Slide 4: Grindr is the premiere social connector serving the gay community
OUR COMPANY Grindr is the premiere social connector serving the gay community. Our brand is global and ubiquitous. Our mission is to make the world free, equal, and just for the LGBTQ+ community. | INVESTOR PRESENTATION 4
Slide 5: A Compelling, Market Leading Business
OUR COMPANY A Compelling, Market Leading Business REACH ENGAGEMENT FINANCIALS 85% Brand U.S. awareness1 ~60 Average daily time spent2 MIN 33% 2023 Revenue growth3 ~190 Countries and territories +121BILLION Chats sent per year4 42% 2023 Adj. EBITDA we’re in margin5 1. Morning Consult brand tracking r
Slide 6: Differentiated from Traditional Dating Apps
OUR COMPANY Differentiated from Traditional Dating Apps Differentiation Benefits for Users Benefits for Grindr Unmatched Reach & Reinforces defensible moat User density Engagement Streamlines product Immediacy with no swiping Location-Based Interface enhancement Strong sense of community Opens doors f
Slide 7: Best-in-Class Performance vs. Peers, with Opportunity to Grow
OUR COMPANY Best-in-Class Performance vs. Peers1, with Opportunity to Grow METRIC2,3 DATING | Peers SOCIAL MEDIA | Peers Revenue Growth 33% 11% 6% Indirect Rev % of Total Rev 13% 2% -- Gross Profit Margin 74% 71% 67% Adj. EBITDA Margin 42% 32% 18% Average Paying Users Growth 19% 6% N/A ARPPU Growth 1
Slide 8: Our TAM is Large and Growing
OUR COMPANY Our TAM is Large and Growing1 SEGMENTATION PEOPLE IN 2023 PEOPLE IN 2026 Population, Excluding Selected Markets 5.7B 5.9B Male Population 2.9B 3.0B Male Population, Aged 18-65 1.6B 1.7B Male Population, Aged 18-65, Owns Smartphone 1.3B 1.4B TAM | Male Population, Aged 18-65, Owns Smartph
Slide 9: Significant Headroom in Paying Users
OUR COMPANY Significant Headroom in Paying Users Grindr Headroom in TAM 2026E TAM1 135M Grindr FY’23 Average Monthly Active Users 13.3M Grindr FY’23 Average Paying Users 937K 1. 2026E TAM represents the estimated male population, aged 18-65, that owns a smartphone and identifies as LGBTQ+ in 2026. For
Slide 10: US LGBTQ Population: Attractive, Affluent Demo
OUR COMPANY US LGBTQ Population: Attractive, Affluent Demo1 $128kmedian HH income for 60% of LGBT retire earlier than 50% more likely to have male-male couples ($75K for planned (47% for earned an MD, JD or PhD total population) non-LGBTQ+) 61% of same-sex couples have both 3.5 trips $1,374 per year
Slide 11: Avg. MAUs Reached 13.3M in 2023 with balanced growth across regions
OUR COMPANY Avg. MAUs Reached 13.3M in 2023 Our Monthly Active Users are with balanced growth across regions Diversified Across the Globe +11% AVG. MONTHLY ACTIVE USERS (MIL) CAGR Rest of World 13.3M North America Asia Pacific 12.2M 13.3M MAU 10.8M Latin America Europe FY 2021 FY 2022 FY 2023 YEAR AVE
Slide 12: Our Positioning
MARCH 2024 OUR POSITIONING
Slide 13: Our Business is Squarely Positioned in a Demo Poised for Growth
OUR POSITIONING Our Business is Squarely % Population Identifying 13.4% Positioned in a Demo as LGBTQ+1 18-24 Poised for Growth 10.5% 11.0% 25-34 8.0% Global self-identified LGBTQ+ population AGE 6.8% grew at a CAGR of ~7% from ‘16-’21 35-49 In ‘21, Gen Z (18-24) was 4x more likely to identify LGBTQ+
Slide 14: Our Engagement is Superior to Traditional Social Media Apps
OUR POSITIONING ~60 Average Time (mins) Spent In-App Per Day 1,2 Our Engagement is Superior to Traditional Social Media Apps Average ~30 minutes Grindr is the digital connective tissue 33 31 of the gay community 29 28 Users spend ~1 hour per day on Grindr, 2x higher than other social media ~25% of p
Slide 15: Our Users Have Consistently Skewed Toward Younger Generations
OUR POSITIONING Grindr Profile Age Distribution1 Our Users Have Consistently Skewed Toward Younger AGES 36+ 18% Generations AGES 30-35 20% >80% of Grindr profiles are aged 18-35 100% Average age has remained consistent AGES 24-29 34% over time, suggesting a constant influx of new users AGES 18-23 28%
Slide 16: Average Monthly Spend on Grindr In-Line with Dating Peers
OUR POSITIONING Monthly Revenue Per Paying User1 Average Monthly Spend on Grindr In-Line with Dating Peers & Higher ~$28 than Other Popular Subscriptions DATING ~$20 Grindr paid users spend $20+ per month, equivalent to $240+ per year ~$18 Grindr ARPPU is on par with dating peers, but SUBSCRIPTIONS
Slide 17: Our Advantage
MARCH 2024 OUR ADVANTAGE
Slide 18: What Makes Grindr a Great Investment Opportunity?
OUR ADVANTAGE What Makes Grindr a Great Investment Opportunity? Unmatched brand Structurally Levers for growth, Performance with powerful advantageous in both near and driven monetization business model long-term management engine horizons team & culture 33% revenue growth1 & 42% Adj. EBITDA New pro
Slide 19: Compelling Revenue Growth Profile
OUR ADVANTAGE Compelling Revenue Growth Profile PAYING ARPPU1 DIRECT REVENUE2 TOTAL REVENUE2 USERS1 937K $20.05 $225M $260M +19% + +16%++ +38%++ +33%++ 1. Paying users and ARPPU represent averages for year end FY 2023. Paying users and ARPPU growth rates represent the growth rate between FY 2023 and
Slide 20: Direct Revenue Grew 38% in 2023
OUR ADVANTAGE Direct Revenue ($mil) Direct Revenue Grew 38% in +39% CAGR 2023 $225 2023 Direct Revenue grew to $225M $163 $116 June 2022 | Launched Boost, a paid a-la-carte feature December 2022 | Introduced Weeklies to a subset of Grindr users May 2023 | Global roll-out of Weeklies, a lower 2021 20
Slide 21: Paying Users and ARPPU Grew at Strong, Double-Digit Rates
OUR POSITIONING Paying Users & ARPPU Paying Users and ARPPU Grew +19% +16% at Strong, Double-Digit Rates 937K $20.05 In 2023, payer growth drove ~50% of $17.28 direct revenue gains, ARPPU growth 788K drove ~50% Payers | Paid penetration was 7.1% in FY 2023 vs. 6.4% in FY 2022 ARPPU | ARPPU grew 16%
Slide 22: EBITDA Margins are Unmatched vs. Peers: 42% in 2023
OUR POSITIONING Adjusted EBITDA ($mil) EBITDA Margins are Unmatched +20% CAGR vs. peers1: 42% in 2023 $110 2023 Adj. EBITDA grew to $110M $77 $85 We have a structurally superior model that drives high margin 53% 44% 42% Advertising spend ~0% of revenue vs. ~18% for dating peers given the limited use
Slide 23: We're Early in Our Monetization Journey
OUR ADVANTAGE We’re Early in Our Monetization Journey SUBSCRIPTION PRODUCTS & PREMIUM ADD-ONS Boost Unlimited XTRA Tinder Tinder Tinder Plus Tinder Gold Tinder Select Platinum Super Super Read Boost Passport Likes You Top Picks Boost Like Receipts Premium Lifetime BFF Travel Boost SuperSwipe Spotlig
Slide 24: Near-term product roadmap: 2024-2025
Near-term product roadmap: 2024-2025 Continue to improve paid user penetration with new features, paywall optimizations, and new à la carte offerings; improve our advertising capabilities and technology Optimize the Add-ons to augment Ad improvements to core product the core product drive more ad re
Slide 25: Mid-term product roadmap: 2025-2026
Mid-term product roadmap: 2025-2026 Additional à-la-carte offerings, serve use cases already available in the app with broad features, and leverage AI / machine learning technology to create connections and advance trust and safety Add-ons to augment Extend to new Leverage AI and the core product us
Slide 26: Management
OUR ADVANTAGE Our Management Team Brings Broad and Deep Experience in Consumer-Facing Digital Brands MANAGEMENT George Arison Vanna Krantz AJ Balance Joel Keating Tristan Pineiro Zac Katz Chief Executive Chief Financial Chief Product SVP, VP, Brand & General Counsel & Officer Officer Officer Engineerin
Slide 27: Appendix
MARCH 2024 Appendix
Slide 28: Non-GAAP Reconciliation
APPENDIX Non-GAAP Reconciliation Year ended Reconciliation of net income (loss) to Adjusted EBITDA ($thou) 12/31/2023 12/31/2022 Net (loss) income (55,768) 852 Interest expense, net 46,007 31,538 Income tax provision (benefit) 4,023 (859) Depreciation and amortization 27,041 37,505 Transaction-relate
Slide 29: Definitions
APPENDIX Definitions 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
Slide 30: Thank you
Thank you MARCH 2024 30