LOS ANGELES - Grindr Inc. (NYSE: NYSE:GRND), a leading LGBTQ+ platform with a market capitalization of $2.95 billion, has announced its decision to redeem outstanding public and private placement warrants. The company has set the redemption price at $0.10 per warrant, with a deadline for exercise or redemption at 5:00 p.m. New York City time on February 24, 2025. According to InvestingPro data, the stock has delivered an impressive 89.7% return over the past year, reflecting strong investor confidence.
Grindr is exercising its right to redeem these warrants as the company’s common stock price has met the required conditions outlined in the warrant agreement. Currently trading at $16.71, with analyst targets ranging from $18 to $21, the stock price has stayed between $10.00 and $18.00 for a sufficient period, satisfying the terms for redemption.
Warrant holders have the option to exercise their warrants for cash at $11.50 per share or opt for a cashless exercise, resulting in a number of shares determined by a set formula. The maximum number of shares issued per warrant in a cashless exercise will not exceed 0.361 shares of common stock. After the redemption date, any unexercised warrants will become void.
The public warrants, currently listed on the New York Stock Exchange under the ticker symbol GRND.WS, will be delisted effective the close of trading on February 21, 2025. Warrant holders are advised to contact their brokers to understand the exercise procedures.
In addition to this redemption, Grindr has updated its financial outlook for the full year 2024. The company now projects revenue to be in the range of $343 to $345 million, indicating a year-over-year growth of 32%-33%, building on its strong historical performance of 31.8% revenue growth in the last twelve months. This exceeds the previously forecasted growth of at least 29%. Grindr also reaffirms its adjusted EBITDA margin guidance of 42% or greater for the same period. InvestingPro subscribers can access detailed financial analysis and 12 additional ProTips about Grindr’s growth potential and market position.
This improved financial outlook is attributed to the strong performance of Grindr’s direct ad sales business in December 2024 and the continued robustness of direct revenue streams, including subscriptions and add-ons. With a solid Financial Health Score of 2.8 (GOOD) according to InvestingPro metrics, the company demonstrates sustainable operational performance. The company is scheduled to report its fourth quarter and full year 2024 financial results in March 2025, approximately 46 days from now.
Grindr emphasizes that this press release does not serve as an offer to sell or a solicitation to buy any securities and that the shares of common stock underlying the warrants have been duly registered under the Securities Act of 1933.
The information in this article is based on a press release statement from Grindr Inc.
In other recent news, Grindr, the online dating platform, has reported a robust growth in its third quarter earnings. The company’s total revenue increased by 27% year-over-year, reaching $89 million, largely attributed to the success of the Weekly Unlimited subscription and a surge in advertising demand. As a result, Grindr has raised its revenue growth guidance for the year to 29% or more.
In addition, Grindr has announced plans to launch new features aimed at enhancing user experience. These include AI-driven personalization tools, expansion of travel features, and new Gayborhood products and services with a focus on health and wellness. The actual performance of these new products may vary once they are launched and tested in the market.
In terms of financial analysis, Goldman Sachs initiated coverage on Grindr, issuing a Buy rating and setting a 12-month price target of $20.00 for the company’s shares. The firm’s analysis was based on Grindr’s impressive revenue growth, market capitalization, and strong operational execution. These recent developments underline Grindr’s strong financial performance and optimistic future outlook.
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