Shares of LGBTQ-focused social platform Grindr (NYSE:GRND) are grinding lower today after announcing a top-line surge but a drop in the bottom line for the fourth quarter.
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During the quarter, revenue increased 21% year-over-year to $55 million. While advertising revenue remained flat, the growth came from higher subscriptions and a la carte add-ons.
On the other hand, the company’s selling, general and administrative expenses jumped by 134% to 21 million in Q4. This, in turn, contributed to the company’s net income dropping to $5 million from $6 million a year ago.
Impressively, in 2022, the platform saw 111 billion chats and 999 million album shares. Further, it had 873,000 paying users during this period.
Looking ahead, for 2023, the company expects the top line to rise by 25%+ and the adjusted EBITDA margin to expand by 38%+.
Shares of the company have surged nearly 44.8% so far this year and its market capitalization is hovering at $1.25 billion at present.
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