James Lu, a director and significant shareholder of Grindr Inc. (NYSE:GRND), recently sold a substantial amount of the company's common stock. According to a filing with the Securities and Exchange Commission, Lu sold a total of 1,316,570 shares over two days, with transactions occurring on December 2 and December 3. The shares were sold at weighted average prices ranging from $15.04 to $15.50, resulting in a total transaction value of approximately $20,067,687. The sale comes as Grindr's stock trades near its 52-week high of $15.53, having delivered an impressive 116% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels.
Following these sales, Lu retains ownership of 33,027,338 shares indirectly through Longview Capital SVH LLC, as well as 12,901 shares directly. The transactions reflect Lu's ongoing adjustments to his holdings in the company, which operates the popular social networking app Grindr. The company has shown strong business momentum with revenue growth of 31.8% in the last twelve months, maintaining a healthy gross profit margin of 74.4%. InvestingPro subscribers have access to 13 additional key insights about GRND's valuation and growth prospects.
In other recent news, Grindr reported a significant Q3 growth in its recent earnings call, with a 27% year-over-year increase in total revenue, hitting $89 million. The company's adjusted EBITDA stood at $40 million, marking a 45% margin. Key factors contributing to this growth were the success of the Weekly Unlimited subscription and a surge in advertising demand, which led to a 43% increase in indirect revenue to $12 million.
Grindr also raised its revenue growth forecast for the year to 29% or more. The company's user engagement initiatives, such as the launch of the "Right Now" mode and "Interest" tab, have proven effective, with monthly active users growing by 8% to 14.6 million and paying users by 15% to 1.11 million.
Despite facing technical debt from the past, the company is making progress in updating its infrastructure. Grindr's executives expressed optimism about their long-term growth prospects for 2025, focusing on enhancing user engagement and improving reliability and user experience. The company ended the quarter with a solid financial position, including $39.1 million in cash and a gross leverage ratio of 2.1x.
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