Grindr Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company generated revenue of $89.3 million for the third quarter, marking a 27.0% increase from $70.3 million in the same period of 2023. For the nine months, revenue reached $247.0 million, up 31.7% from $187.6 million year-over-year. This growth was driven by an increase in both direct and indirect revenue streams, with direct revenue accounting for 86.1% of total revenue in Q3 2024, primarily from subscription fees and premium add-ons.

Net income for the third quarter was $24.7 million, a substantial turnaround from a net loss of $0.4 million in Q3 2023, resulting in a net income margin of 27.6%. For the nine-month period, the company reported a net loss of $7.1 million, an improvement from a loss of $11.0 million in the prior year. Adjusted EBITDA also saw a notable increase, reaching $40.1 million for Q3 2024, up from $32.6 million in Q3 2023, and $108.7 million for the nine months, compared to $81.5 million in 2023.

Grindr's operating expenses for the third quarter totaled $60.9 million, up from $53.7 million in the same period last year. The increase was primarily attributed to higher selling, general, and administrative expenses, which rose by 52.4% to $25.0 million. Conversely, product development expenses decreased by 33.8% to $8.8 million, reflecting a reduction in personnel-related costs.

The company reported a significant increase in cash and cash equivalents, totaling $39.1 million as of September 30, 2024, compared to $27.6 million at the end of 2023. Accounts receivable also rose to $44.0 million from $33.9 million during the same period. Long-term debt decreased to $279.1 million from $325.6 million, reflecting the company's efforts to manage its liabilities effectively.

Grindr continues to focus on enhancing its platform and expanding its user base, with average monthly active users increasing to 14.6 million in Q3 2024, up from 13.5 million in the prior year. The number of average paying users also grew by 15.5% to 1.1 million. The company is actively developing AI-driven features, which may present both opportunities and risks related to data privacy and user engagement.

Overall, Grindr's financial performance indicates a positive trajectory, with strategic initiatives aimed at driving growth and improving profitability.