Grindr Inc. earnings

Management highlights

1. On age assurance: Grindr is 18-plus, supports app store/phone-based age verification, endorsed federal and state legislation. App-level age verification in some countries causes user drop-off. Mao growth impacted but still growing. 2. On advertising: Ads business grew from ~$30M in 2022 to expected over $90M this year, aims to be ~15% of revenue. Direct ad business not as successful, but ad business expected to keep growing, with rewarded video showing traction. 3. On discrete mode: Allows users to post in RightNow without connecting to profile for discretion, seen as improving RightNow experience. 4. On hiring: Been behind on hiring, but AI is increasing productivity, changing how teams work, so hiring will be judicious and AI-native. 5. On marketing: Investing in cultural relevant events like White House Correspondents Dinner and partnering with Madonna to improve cultural relevance.

Guidance

1. Advertising business expected to keep growing and stay at ~15% of total revenue baseline. 2. Hiring plan adjusted due to AI increasing productivity, may not hire all initially. 3. Will continue investing in marketing efforts, with more confidence to spend more as cultural relevance efforts show success.

Segment performance

Not explicitly detailed in terms of individual product segments' absolute financial performance and revenue contribution %

Risks & headwinds

1. Age verification rules in some countries have impacted MAU growth. 2. Direct advertising business has not been as successful as desired, with brands not readily putting dollars to work on Grindr. 3. Hiring adjustments and changing work modes may bring uncertainties.

Analyst Q&A

• Q: On age assurance, key learnings from geographies with age restrictions and impact on Grindr community engagement; on advertising, reason for big campaign and pipeline.

  A: On age assurance, supports app store/device-based verification, app-level has user drop-off. On advertising, ads business grew from $30M in 2022 to over $90M, direct ad business needs work, but ad business expected to grow.

• Q: On discrete mode and future engagement; on incremental hiring and headcount direction.

  A: On discrete mode, enables posting in RightNow without profile connection for discretion. On hiring, AI increasing productivity, hiring judicious and AI-native, also investing in marketing.