You may not agree with what Grindr (NASDAQ:GRND), the social networking app for the LGBTQ community, does, but you don’t really have to to be impressed by its stock performance. In fact, Grindr was up over 17% in Tuesday afternoon’s trading, all thanks to its earnings report, which was an absolute winner.
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The report by itself told quite a bit of the story. It posted $0.13 per share in earnings.It also posted $61.5 million in second quarter revenue, and net income of $22.3 million on a margin of 36%. All very solid numbers. Its revenue was also up 32.2% against the second quarter of 2022, so that’s a win in and of itself. Grindr’s CEO, George Arison, noted that Grindr was still improving in terms of its strategic priorities, and found that its weekly subscriptions were doing very well.
Even as Grindr killed it in the second quarter, and looks for solid reports to come, there are some potential trouble signs. Specifically, Grindr is having trouble with its RTO—Return To Office—policy. That has been a common sticking point for a lot of businesses of late, where those who got to telecommute back during the pandemic discovered that they preferred telecommuting to their physical commutes. Businesses, who had large amounts of pricey real-estate to justify, needed workers back in the office. Thus, Grindr gave employees two weeks to decide to return or lose their jobs altogether. Some called this a retaliatory move for potential unionization plans, but it was unclear if that was really the case.
At any rate, the last five days of trading for Grindr show that the earnings report came out at a good time. Grindr was actually trending downward for most of those five days, with a bit of a rally coming in yesterday’s trading. However, the announcement of earnings sent Grindr up rapidly. Though it didn’t hold onto those gains for long, a recovery kicked in after the post-surge drop-off and gave Grindr very solid gains today.
