Investing.com -- Shares of Grindr Inc. (NYSE: NYSE:GRND) climbed 7% after-hours today after the company announced it expects to surpass its 2024 revenue projections and detailed plans for the redemption of warrants.
The optimism in Grindr's stock followed a press release indicating that the company anticipates its full-year 2024 revenue to reach between $343 and $345 million, marking an increase of 32%-33% YoY. This forecast exceeds Grindr's prior guidance of at least 29% revenue growth YoY. Additionally, the company reaffirmed its expectation for an Adjusted EBITDA margin of 42% or greater for the full year.
Grindr's upward revision in revenue is attributed to the strong performance of its direct ad sales business, which significantly outperformed expectations in December 2024, as well as sustained vigor in direct revenue from subscriptions and add-ons. The company plans to report its financial results for the fourth quarter and full year 2024 in March 2025.
In a separate but related announcement, Grindr also disclosed its intention to redeem outstanding public and private placement warrants at a redemption price of $0.10 per warrant. The redemption is scheduled for 5:00 p.m. New York City time on February 24, 2025. Warrant holders have until that time to exercise their warrants, with the option to do so for cash or on a "cashless basis." The redemption notice follows the condition that Grindr's common stock price met the required threshold as of January 17, 2025.
DISCLAIMER: James Lu is the Chairman of Grindr Inc. and owner of Investing.com
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