Grindr Inc. (NYSE:GRND) Q4 2024 Earnings Conference Call March 5, 2025 5:00 PM ET Company Participants Tolu Adeofe - Head-Investor Relations George Arison - Chief Executive Officer Vanna Krantz - Chief Financial Officer Conference Call Participants Andrew Marok - Raymond James John Blackledge - TD Cowen Eric Sheridan - Goldman Sachs Operator Good afternoon. My name is Calvin and I'll be your conference operator today. At this time, I would like to welcome everyone to the Grindr's Fourth Quarter and Full Yea ...

LETTER TO SHAREHOLDERS FOURTH QUARTER AND FISCAL YEAR 2024 | MARCH 5, 2025 LETTER TO SHAREHOLDERS 1 Q4 2024 Q4 2024 LETTER TO SHAREHOLDERS 2 Dear Grindr Shareholders, 2024 was a landmark year for Grindr. We grew full-year revenue 33% year-over- year to $345 million with an Adjusted EBITDA margin of 43% - well ahead of guidance - driven by our relentless focus on user experience, our commitment to delivering great products, and the continued expansion of our advertising business. FY 2024 Achieved 33% year-ov ...

Warrant Redemption - The Company is redeeming all outstanding Warrants at a price of $0.10 per Warrant, effective February 24, 2025[1] - A total of 34,860,000 Warrants are being redeemed, including 18,560,000 Private Placement Warrants and 16,299,825 other Warrants[2] - The redemption is triggered as the last reported sales price of Common Stock has been between $10.00 and $18.00 per share for twenty trading days prior to January 17, 2025[11] - Warrant holders can exercise their Warrants until 5:00 p.m. New York City time on the Redemption Date, either for cash at $11.50 per share or on a cashless basis[5] - The maximum number of shares issued on a cashless basis will not exceed 0.361 shares of Common Stock per Warrant[5] - The Company will provide the Redemption Fair Market Value to Warrant holders no later than one business day after the ten-trading day period following the Notice of Redemption[5] - The last trading day for the Warrants on the NYSE will be February 21, 2025[6] - Holders of Warrants in "street name" must contact their brokers to determine the procedure for exercising their Warrants[14] - Any unexercised Warrants after the Redemption Date will be void, and holders will only receive the Redemption Price[9] - The Company encourages Warrant holders to consult with their financial advisors regarding the exercise of their Warrants[25] Financial Performance and Growth - The company reported a revenue of $96.77 billion in the September quarter, setting a record for iPhone sales[110] - The growth in the Chinese market contributed significantly to the overall revenue increase, reflecting a strong demand for new products[110] - Future guidance indicates an expected revenue growth of 10% year-over-year for the next quarter, driven by new product launches[110] - User data shows an increase of 15% in active devices, reaching a total of 1.5 billion devices globally[110] Investment and Innovation - The company is investing $5 billion in research and development for new technologies and product innovations over the next fiscal year[110] - The company has completed a strategic acquisition of a tech startup for $1 billion to enhance its software capabilities[110] - New product lines are expected to launch in Q1 2024, with projected sales of $2 billion in the first quarter[110] Market Strategy - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 20% increase in market share[110] - A new marketing strategy is being implemented to increase brand awareness, with a budget allocation of $500 million for the upcoming year[110] Operational Efficiency - The company aims to reduce operational costs by 5% through efficiency improvements and automation initiatives[110]

Group 1 - Grindr (NYSE: GRND) has raised its 2024 growth outlook, expecting revenue growth to increase from +32% to +33%, compared to a prior estimate of +29% and a consensus estimate of +25.5% [1] - The company has maintained its adjusted EBITDA margin guidance of at least 42%, consistent with previous estimates [1] Group 2 - Astrada Advisors specializes in investment research across technology, media, internet, and consumer sectors in North America and Asia, focusing on identifying high-potential investments [1] - The firm integrates rigorous fundamental analysis with data-driven insights to provide a nuanced understanding of key trends, growth drivers, and competitive landscapes [1] - Astrada Advisors aims to empower investors with timely research and a comprehensive view of industry dynamics, particularly in volatile markets [1]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates, weekly webinars for live advice, and support for both new and experienced investors [2] - The Deep Value Returns community is described as active, vibrant, and accessible via chat, fostering a supportive environment for investors [2]

Core Insights - Astrada Advisors provides actionable recommendations aimed at enhancing portfolio performance and uncovering alpha opportunities, backed by a strong track record in investment research at leading global investment banks [1] - The firm specializes in technology, media, internet, and consumer sectors across North America and Asia, excelling in identifying high-potential investments and navigating complex industries [1] - Astrada Advisors leverages extensive local and global experience to offer unique perspectives on market developments, regulatory changes, and emerging risks [1] - The research methodology integrates rigorous fundamental analysis with data-driven insights, delivering a nuanced understanding of key trends, growth drivers, and competitive landscapes [1] - The focus of Astrada Advisors is to empower investors with timely research and a comprehensive view of industry dynamics, particularly in volatile markets or when exploring new trends [1]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments in complex instruments like cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to perform their own research [1]. Group 2 - The website includes information about high-risk financial instruments, such as cryptocurrencies and CFDs, which are complex and can lead to significant financial losses [1]. - Users are encouraged to understand the workings of these instruments and assess their ability to handle the associated risks before investing [1].

Group 1: Stock Market Trends - The stock market is expected to continue its December rally into January, with a correction anticipated in February and March [1] - February is noted as the weakest month in the 48-month election cycle, as highlighted by Arthur Merrill [1] - For the remainder of 2025, higher stock prices are expected, with June and August-September identified as potential corrective periods [1] Group 2: Grindr Inc. Performance - Grindr Inc. operates a social network and dating application for the LGBTQ community, with stock recommended for purchase at $12.72 on October 21, now closing at $19.62, reflecting a 54% increase [2] - Monthly cycle analysis suggests a potential top in mid-January and a projected low in July 2025, although the data is limited to four years [2][4] - The daily graph indicates an uptrend, with relative strength rising since autumn 2023, and the share price is expected to approach $30 before a correction in 2025 [5][6] Group 3: Tesla Performance - Tesla was recommended for purchase at $213.65 on October 23, with the stock now closing over $460, indicating a breakout from a long consolidation pattern [7] - The breakout projects a share price range of $550-$650, with the monthly cycle indicating that the cycle does not peak until June 2025 [7][9] - Tesla is noted as one of the few major tech stocks that are not currently overbought on a monthly basis [8]

Core Viewpoint - Grindr Inc. (GRND) shares have increased by 12.1% in the past four weeks, closing at $15, with a mean price target of $19.33 indicating a potential upside of 28.9% [1] Price Targets - The average price target consists of three estimates ranging from a low of $18 to a high of $21, with a standard deviation of $1.53, suggesting a 20% increase at the lowest estimate and a 40% increase at the highest [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement [7] Analyst Sentiment - Analysts are optimistic about GRND's earnings prospects, as indicated by upward revisions in EPS estimates, which have shown a strong correlation with near-term stock price movements [9][10] - The Zacks Consensus Estimate for the current year has risen by 12% over the past month, with no negative revisions [10] - GRND holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are often sought after, they can mislead investors, and reliance solely on them may lead to disappointing returns [3][5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Group 1 - Grindr Inc. has shown a year-to-date performance increase of approximately 70.8%, significantly outperforming the average gain of 28.1% in the Computer and Technology sector [4] - The Zacks Rank for Grindr Inc. is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The consensus estimate for Grindr's full-year earnings has risen by 12% over the past quarter, reflecting improved analyst sentiment [3] Group 2 - Grindr Inc. is part of the Internet - Software industry, which consists of 145 individual stocks and currently ranks 36 in the Zacks Industry Rank [6] - The average gain for the Internet - Software industry this year is 32.6%, indicating that Grindr is performing better than its industry peers [6] - Another notable stock in the Computer and Technology sector, Meta Platforms, has also shown strong performance with a year-to-date return of 60.8% [4][5]