Grindr Inc (NYSE:GRND), a dating app oriented at the LGBTQ community that began listing on the New York Stock Exchange in November, reported third-quarter earnings on Monday, showing an increase in revenues and users.
What Happened: Grindr, which went public through a $2.1 billion SPAC merger with Tiga Acquisition, issued third-quarter earnings on Monday, booking $50.4 million, up 32% year over year. The company has posted year-to-date revenues of $140.5 million.
The company also said paying users were up from 577,000 in 2021 to 818,000 year over year.
"We had an excellent third quarter and year to date as we prepared to enter the public markets," said Grindr CEO George Arison. "Financial results reflect growth in paying users and average revenue per user, supported by Grindr's strong business model."
Arison said the company has made solid progress on key initiatives, including the ramp-up of Boost, a premium add-on feature that enables connections beyond the hyperlocal.
Why It Matters: After only a few weeks on the NYSE, the stock soared over 400% before plummeting below IPO levels. GRND is presently trading 38% below its IPO price – but there's a clear reason for the drop.
The high volatility affecting the stock comes after a high percentage of shares were redeemed as part of the merger, which in turn lowered the float of the public company.
Benzinga previously reported that a total of 98% of the shares were redeemed at the merger. Until the share unlocks, the company could see volatility spikes on any positive momentum, and the stock may also see strong mentions on social media.
Read also: The Benzinga Moneymaker Series: Top 5 Stocks This Week
Grinr lost more money in the third quarter ($4.7 million) than it did in the entire year ($4.3 million), likely owing to IPO costs and other expenses.
Last year, Grindr, which launched in 2009, had about 11 million daily users.
During the same time period, users sent a total of 260 million messages and spent an average of 61 minutes each day using the app. The value of Grindr's "highly engaged user base in a large and untapped addressable market" was estimated to be $4 billion.
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