James Fu Bin Lu, a director and significant shareholder of Grindr Inc. (NYSE:GRND), recently sold a substantial portion of his holdings in the company. The sale comes as Grindr's stock has shown remarkable strength, gaining nearly 79% year-to-date and trading close to its 52-week high of $16.31. According to a Form 4 filing with the Securities and Exchange Commission, Lu disposed of 750,000 shares of Grindr's common stock on December 10, 2024. The shares were sold at an agreed price of $15.143 each, resulting in a total transaction value of approximately $11.36 million. The transaction represents a small portion of Grindr's current $2.78 billion market capitalization. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 12 additional exclusive insights available to subscribers.
Following these transactions, Lu, through his indirect ownership via Longview Capital SVH LLC, holds 31,540,655 shares of Grindr. This adjustment in holdings accounts for previous over-reporting in earlier filings, which had inaccurately stated higher indirect holdings.
The sales were part of privately negotiated transactions, as noted in the filing. James Lu's financial interests in Grindr are managed through various entities, including Longview Capital Group Limited and Longview Grindr Holdings Limited. Despite the sale, Lu continues to maintain a significant stake in the company.
In other recent news, Grindr has reported strong Q3 growth and raised its revenue outlook. The company exhibited a 27% year-over-year increase in total revenue, reaching $89 million, and an adjusted EBITDA of $40 million, marking a 45% margin. The surge in advertising demand and the success of the Weekly Unlimited subscription were key contributors to this growth, with indirect revenue climbing 43% to $12 million. The company's executives, CEO George Arison and CFO Vanna Krantz, expressed optimism about Grindr's future, citing enhanced user engagement features and a refined ad strategy as primary drivers. These recent developments also include an 8% growth in monthly active users, reaching 14.6 million, and a 15% increase in paying users to 1.11 million. Grindr has raised its revenue growth guidance for the year to 29% or more and maintains a positive outlook for its product roadmap and long-term growth into 2025. Despite addressing technical debt from the past, the company ended the quarter in a solid financial position, including $39.1 million in cash and a gross leverage ratio of 2.1x.
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