Why Grindr Stock Popped This Week
Shares of Grindr (NYSE: GRND) popped as much as 13.8% this week, according to data provided by S&P Global Market Intelligence. The LGBTQ dating app company grew its revenue at an impressive rate in the second quarter and raised its full-year 2023 guidance. However, the stock is still down 50% from when it went public through a special purpose acquisition company in 2022.
In the second quarter of 2023, Grindr's revenue grew 32% year over year to $61.5 million. This strong growth was driven by monthly active users growing 8% year over year to 13.1 million, an increase in its paying user penetration to 7.1%, and an increase in average revenue per user. These are the core drivers of any dating app (total users, paying users, and money spent per paying user). Grindr is succeeding with all three at the moment.
This strong growth has come with impressive profitability as well. Grindr posted an impressive 44% adjusted EBITDA margin (earnings before interest, taxes, deprecation, and amortization) in the quarter, which equates to $27 million in adjusted earnings. Investors were likely impressed with Grindr's combination of revenue growth and profitability, a feature that few early-stage internet companies can boast.
Source Fool.com
