Becker Private Equity & Business Podcast: Episode Summary

Title: Success Can Be Achieved in Different Ways: The Hims and Hers and Grindr Story
Host: Scott Becker
Release Date: June 17, 2025

Introduction

In this episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the impressive growth trajectories of two prominent companies: Hims & Hers and Grindr. With both companies showcasing substantial year-over-year gains, Scott explores the distinct strategies each employed to achieve their success.

Overview of Hims & Hers and Grindr's Growth

Scott begins by highlighting the significant performance of both stocks over the past year:

• Hims & Hers: Up 144% year-to-date
• Grindr: Up 133% year-to-date

Quote:
"Hims and Hers up 144%. Grindr up 133%." [03:15]

Hims & Hers: Expanding Beyond Core Telehealth Offerings

Core Business:
Originally renowned for providing online telehealth services, specifically addressing erectile dysfunction and related health issues.

Strategic Expansion:
Over the past year, Hims & Hers has broadened its scope beyond its initial offerings:

• Diversification into Broader Telehealth Services: Expanding into various health and wellness areas.
• Compounding Pharmacy Services: Introducing more personalized medication solutions.

Market Reception:
The market has responded favorably to this adjacent growth, recognizing the company's ability to leverage its existing strengths in connectivity, marketing, and distribution.

Quote:
"They've expanded broadly into broader versions of telehealth, broader versions of being a compounding pharmacy." [04:10]

Grindr: Focusing on Core Niche Amid Challenges

Core Business:
Grindr is best known as a hookup platform catering to non-heterosexual men, primarily serving the LGBTQ+ community.

Strategic Approach:
In contrast to Hims & Hers’ diversification, Grindr has chosen to double down on its core niche, especially during challenging times:

• Strengthening Core Offerings: Enhancing the platform to better serve its primary user base.
• Community Engagement: Focusing on building and maintaining a strong, loyal community within its niche.

Outcome:
This focused approach has resulted in sustained and impressive growth, even in a competitive and evolving market landscape.

Quote:
"When things are challenging, you'll go back to your core. And Grindr has done just a tremendous job of constantly going back to the core niche and trying to build on the core niche." [06:20]

Comparative Analysis: Adjacent Growth vs. Core Focus

Scott contrasts the two strategies to underscore that success can be achieved through different paths:

1. Adjacent Growth (Hims & Hers):

   • Advantages:
     • Leveraging Existing Strengths: Utilizing established capabilities in marketing and distribution.
     • Market Expansion: Tapping into new market segments and service areas.
   • Challenges:
     • Resource Allocation: Balancing investments between core and new areas.
     • Maintaining Quality: Ensuring new services meet the company's standards.

2. Core Focus (Grindr):

   • Advantages:
     • Deepening Expertise: Enhancing offerings within a well-understood niche.
     • Community Loyalty: Building a strong, dedicated user base.
   • Challenges:
     • Market Limitations: Potential constraints in scalability if the core market is saturated.
     • Dependency Risk: Heavy reliance on the core niche's continued relevance and growth.

Quote:
"I look at these two companies as great examples of different ways of doing in a way that's highly intelligent and highly successful." [08:45]

Key Insights and Takeaways

• Diverse Strategies Lead to Success: Both expansion and deepening focus on core niches can drive significant growth, depending on the company's strengths and market conditions.

• Adaptability is Crucial: Companies must assess their unique positions and decide whether to innovate outward or reinforce their foundational offerings.

• Market Reception Matters: The success of different growth strategies is highly contingent on how the market perceives and responds to these changes.

Quote:
"Today's discussion is two ways to get great growth: the Hims and Hers and the Grindr story." [09:30]

Conclusion

Scott Becker wraps up the episode by emphasizing that there is no one-size-fits-all approach to achieving business success. Whether a company chooses to expand into adjacent markets or reinforce its core offerings, what matters most is aligning the strategy with the company's inherent strengths and market dynamics.

Final Quote:
"Success can be achieved in different ways, as demonstrated by the growth stories of Hims & Hers and Grindr." [10:00]

This episode serves as a valuable case study for entrepreneurs, investors, and business enthusiasts looking to understand the varied pathways to substantial growth within the private equity and business landscapes.

Listen to the full episode on Becker Private Equity & Business Podcast to gain deeper insights into these strategies and their implications for future investments.