Slide 1: Shareholder Letter: Fourth Quarter and Fiscal Year 2023
Q4 2023 Shareholder Letter Fourth Quarter and Fiscal Year 2023 March 7, 2024 LETTER TO SHAREHOLDERS 1
Slide 2: Dear Grindr Shareholders
Q4 2023 Dear Grindr Shareholders, Grindr achieved exceptional performance in 2023. With strong engagement from our users and a deep appreciation for the dedication of our team, we are proud to have had such a strong start to our journey as a public company, and we are carrying this momentum into 202
Slide 3: We are proud of this transaction but recognize it isn't a finish line
Q4 2023 We are proud of this transaction but recognize that completing it isn’t a finish line; it’s a starting point. We have much more to do to broaden acceptance and appreciation for Grindr’s business and mission. We’re approaching our 15-year anniversary, and over that time, Grindr has built a gr
Slide 4: In 2024 we're focused on three strategic priorities
Q4 2023 In 2024 we’re focused on three strategic priorities to guide us on this path: Priority 1 We are embarking on an ambitious, multi-year effort to broaden the functionality of our app, anchored in a better understanding of user intent. Focusing on intent will better enable us to build features
Slide 5: Taking decisive control of our brand
Q4 2023 Priority 2 We are taking decisive control of our brand and proudly telling the story of Grindr’s great legacy of serving and positively impacting millions of people in our user community around the world. However, this isn’t the story that many people hold to be our truth. Legacy perceptions
Slide 6: Building a performance-driven culture of executional excellence and innovation
Q4 2023 Priority 3 To execute against our first two priorities, we will continue to build a performance-driven culture of executional excellence and innovation. Grindr is a place where we can do incredible work with incredible people; we go after our bold goals hard because delivering results has a
Slide 7: Execution on 2023 Strategic Priorities
Q4 2023 Execution on 2023 Strategic Priorities In 2023, our laser focus on users, operational excellence, and execution delivered a successful first year as a public company, and we achieved milestones across all four of our strategic priorities. Here’s what we did: Improve the User Experience In 20
Slide 8: Driving Monetization with New Offerings; Planning for Growth
Q4 2023 Driving Monetization with New Offerings In 2023, we introduced our Weekly Xtra subscription plan, which provides users with flexibility in how they engage with Grindr and payment optionality. Weekly XTRA resonated remarkably well with our users in 2023, reflected by an 18% year-over-year inc
Slide 9: Serving Our Community
Q4 2023 Serving Our Community A standout initiative in 2023 has been our support for LGBTQ+ health. Grindr for Equality has expanded an innovative strategy to fight the HIV epidemic by enabling Grindr users in the U.S. and a growing number of additional countries to order free HIV self-test kits by
Slide 10: 2023 Financial & Operating Performance
Q4 2023 2023 Financial & Operating Performance We delivered strong results in 2023 and exceeded guidance on both top and bottom lines. Our consistent focus throughout the year on users and execution led to an impressive outperformance in 2023 as we beat our outlook on revenue and Adjusted EBITDA. To
Slide 11: Revenue and Operating Expenses
Q4 2023 Revenue Revenue for the fourth quarter 2023 was $72 million, up 32% year-over-year from $55 million. Growth in revenue was Revenue driven by both an increase in the number ($ in millions) +32% +33% of paying users and ARPPU underpinned by the growth in our subscription product $72M $195M off
Slide 12: Operating Income and Net Loss
Q4 2023 Operating Income Operating Income Operating Income for the fourth quarter ($ in millions) 2023 was $16 million, or 23% of revenue, versus operating income in Q4 2022 of $2 million, or 4% of revenue. Operating Income for the full year 2023 was $55 million, or 21% of revenue, versus operating
Slide 13: Adjusted EBITDA and Performance Metrics
Q4 2023 Adjusted EBITDA Adjusted EBITDA for the fourth quarter Adjusted EBITDA 2023 was $29 million, or 40% of total ($ in millions) revenue, versus $20 million, or 36% of total revenue, in the prior year period. Adjusted EBITDA for the full year 2023 $20M was $110 million, or 42% of total revenue,
Slide 14: 2024 Guidance and Conference Call
Q4 2023 2024 Guidance 23%+ Revenue 40%+ Adjusted EBITDA Growth Margin Conference Call Grindr will host a conference call to discuss these results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time), March 7, 2024. To access the conference call, participants should dial (+1) 800 225 9448 and enter the
Slide 15: Adjusted EBITDA and Adjusted EBITDA Margin
Q4 2023 Adjusted EBITDA Adjusted EBITDA and Adjusted and Adjusted EBITDA Margin (unaudited) EBITDA Margin (in thousands) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Reconciliation of net (loss) income to Adjusted EBITDA Net (loss) income...............................
Slide 16: Consolidated Balance Sheets
Q4 2023 Consolidated Balance Unaudited Consolidated Sheets Balance (in thousands, except share data) (unaudited) Sheets (in thousands, except share data) December 31, 2023 2022 Assets Current Assets Cash and cash equivalents ...........................................................................
Slide 17: Consolidated Statements of Operations and Comprehensive (Loss) Income
Q4 2023 Consolidated Statements Total liabilities and stockholders’ (deficit)of Operations equity and Comprehensive .......................................... $ 444,595 $ 438,828 (Loss) Unaudited Income (unaudited) Consolidated Statements (in of thousands) Operations and Comprehensive (Loss) Income
Slide 18: Consolidated Statements of Cash Flows
Q4 2023 Consolidated Statements Unaudited Consolidated of of Statements Cash CashFlows Flows (unaudited) (in thousands) (amounts in thousands) Year Ended December 31, 2023 2022 Operating activities Net (loss) income and comprehensive (loss) income ......................................... $ (55,768)
Slide 19: Consolidated Statements of Cash Flows Continued
Q4 2023 Consolidated Statements of Cash Flows Continued (unaudited) (in thousands) Unaudited Consolidated Statements of Cash Flows (continued) (amounts in thousands) Year Ended December 31, 2023 2022 Financing activities Proceeds from the repayment of promissory note to a member including interest .
Slide 20: Forward Looking Statements
Q4 2023 Forward Looking Statements This letter contains “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 regarding Grindr’s current views with respect to our industry, operations and future business
Slide 21: Non-GAAP Financial Measures
Q4 2023 Non-GAAP Financial Measures Grindr uses Adjusted EBITDA and Adjusted EBITDA margin, 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 presente