Grindr Inc. reported a significant boost in its financial outlook after experiencing growth in both revenue and user base during the second quarter. The LGBTQ dating app, headquartered in West Hollywood, revealed a loss of $22.4 million, or 13 cents per share, in stark contrast to the $22.3 million profit, or 13 cents per share, it reported in the same period last year.
Despite the loss, the company saw a 34% increase in revenue, rising from $61.5 million last year to $82.3 million this year. The growth was largely attributed to better merchandising of premium features, enhancements to paid subscription tiers, and the introduction of the “Unlimited Weekly” feature at the end of the last quarter.
Grindr also reported a 14% increase in average paying users, bringing the total to 1.1 million, while monthly active users rose by 7% to 14.1 million. These figures reflect the company’s ongoing efforts to improve user engagement and monetization.
As a result of its strong performance, Grindr raised its full-year guidance for revenue growth to 27% or greater, up from the previously projected 23%. The company also adjusted its expected earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to 42% or greater, an increase from its earlier forecast of 40% or greater.
$22.4 million loss in the second quarter alone? That doesn’t sound too good. Sounds like they need to fire a bunch of people.