Grindr wants to be the everything app for gay men; investors are
When George Arison took over Grindr in 2022, he inherited a company that had been bounced from Chinese ownership to a forced divestiture to a private-equity…
Summary
When George Arison took over Grindr in 2022, he inherited a company that had been bounced from Chinese ownership to a forced divestiture to a private-equity rescue — a business that was printing money but also had no real product or business strategy. Four years, a SPAC listing, and a controversial return-to-office mandate later, Grindr has become convincing as a growth story. Revenue is on pace to roughly triple, from $195 million in 2022 to a guided $540 million-plus this year, with adjusted EBITDA margins holding above 40%. That growth has come almost entirely from getting existing customers to pay more versus dramatically growing its user base.
Positives
- Four years, a SPAC listing, and a controversial return-to-office mandate later, Grindr has become convincing as a growth story.
- That growth has come almost entirely from getting existing customers to pay more versus dramatically growing its user base.
- 4 million paying users, or 9% of its user base, but average revenue per user has risen considerably since 2022, and Arison is very focused on where the next leg of growth comes from.
Risks & concerns
- The article may not provide enough evidence to validate every implication.
- Execution, cost, adoption, regulation, or security could change the outcome.