By Geoffrey Smith
Investing.com -- Grindr (NYSE:GRND) stock fell over 8% in premarket trading on Tuesday after the dating site operator's first quarterly report since its return to public markets proved a disappointment.
Underlying earnings before interest, taxes, depreciation and amortization fell some 17% on the year in the fourth quarter to $19.4 million, while net income fell 20% to $5.2M despite a 34% rise in revenue.
Grindr's guidance for the current year also left the market cold, with a slowdown in revenue growth and a drop in profitability. It expects revenue to grow some 25% this year, but sees its underlying EBITDA margin falling to as low as 38%, from 44%.last year, partly due to a bigger-than-expected capital spending program.
Grindr, which operates a suite of sites aimed at the LGBTQ+ community, had gone public late in 2022 through a merger with a special purpose acquisition company, after its previous Chinese owner Kunlun was forced to dispose of it by U.S. regulators who considered Kunlun's position to be a security risk to the U.S.
Since listing, its shares have largely traded below the $10 level at which the SPAC traded before it bought the operation. However, the stock had recovered gradually over the turn of the year and had risen by some 10% in the two sessions prior to the release of the earnings. It had closed on Monday at $7.21, its highest since early December.