Q4-FY22 Activity Report and Continues Path to Cash flow Positive

Rhea-AI Summary

Tinybeans Group Limited (OTCQB: TNYYF) reported a strong Q4-FY22, with revenue reaching a record US$2.6M, a 5% increase year-over-year. Advertising revenue was US$2.06M, down 7% due to brand campaign delays amid economic challenges, while subscription revenue soared 111% to US$480K. The company achieved a record annual revenue of US$10.9M, up 34% from the previous year. Monthly Active Users grew to 2.94M, and Tinybeans aims for cash flow positivity without further equity raises. The company focuses on growing subscription revenues and improving advertising strategies for FY23.

Positive

• Q4 revenue of US$2.6M, up 5% YoY.
• Q4 subscription revenue increased by 111% to US$480K.
• Record annual revenue of US$10.9M, up 34% YoY.
• Strong growth in Monthly Active Users, reaching 2.94M, up 13% from Q3.
• Cash balance of over US$4.2M at the end of Q4.

Negative

• Advertising revenue declined by 7% in Q4 due to brands delaying campaigns.
• Cash burn for Q4 was approximately US$410K.

NEW YORK, July 28, 2022 (GLOBE NEWSWIRE) -- Tinybeans Group Limited (ASX: TNY) (OTCQB: TNYYF) (“Tinybeans” or “the Company”), the only personalized platform trusted by parents to help them raise amazing kids, released today its Q4-FY22 Quarterly Activity Report and 4C Cash Flow statement.

Q4-FY22 Highlights

• Q4 Revenue hit a record US$2.6m, up 5% pcp (prior corresponding period)
• Advertising revenue hit a record US$2.06m, down 7% pcp – relates to brands delaying and pausing campaigns due to macroeconomic conditions. 22% coming from new brands and 78% from existing brands.
• Subscription revenue hit a record US$480k, up 111% pcp - converting users to paying subscribers with recurring revenue            
• Monthly Active Users (MAU) hit 2.94m, up 13% on Q3 – Search Engine audience began to grow again, reclaiming lost ground in calendar 2021.
• Cash receipts at June 30, 2022 was a record US$3.1m. Cash burn for Q4 was approximately US$410k. Cash balance at the end of quarter was over US$4.2m.
• Tinybeans intends on becoming cash flow positive. The Company expects to maintain a positive cash balance without raising further equity capital.

FY22 Highlights

• Revenue hit a record US$10.9m, up 34% pcp
• Advertising revenue hit a record US$9m, up 31% pcp, won 17 $100k deals vs 13 FY22
• Subscription revenue hit a record US$1.5m, up 77% pcp
• At 56% growth in direct advertising revenues, significantly outpaced single digit industry growth rate outside of top 4.
• Successfully retired Red Tricycle and (re)introduced one brand Tinybeans to ad market
• Grew National deal size from $30k to $51k (+69%)

Tinybeans’ Chief Executive Officer, Eddie Geller, said:
 
“In FY22, we delivered revenue growth of 34% over the pcp, hitting US$10.9M, the highest in our history. Our growth during the year was driven by strength in advertising, up 31% pcp (prior corresponding period), and recurring revenues with subscriptions, up 77% pcp.

We are pleased to report that Tinybeans delivered a good performance in Q4, generating overall revenue of US$2.6M, up 5% on the same period 12 months prior (pcp). The result includes US$2.06M in advertising revenues is down 7% on pcp, which relates to brands delaying and pausing campaigns due to macroeconomic conditions. We grew Beanstalk, our paid subscription product, to US$480K, up 111% pcp and US$166k in Monthly Recurring Revenues (MRR). The quarter finished with 51k paying subscribers.

As predicted, our audience from Search Engine Optimization (SEO) has begun to recover delivering growth in overall MAU, hitting just under 3M. 

As the U.S economy recently has been showing signs of stress and with the goal of getting to cash flow positive, we’ve taken concerted efforts to become more efficient with expenses and operating margin. 

We’re pleased to report that our cash burn for Q4 was $600k, with a cash balance of US$4.2M as of June 30. We remain confident of becoming operationally cash flow positive in the next 12-18 months.

Advertising: We are on our way in FY23 to delivering double digit revenue growth in advertising, however this may be slower due to economic conditions. We will also continue to make strategic decisions to pull back on programmatic ad revenue to support growth in our subscription product.

Subscriptions: We have employed a new customer centric product strategy for FY23 aimed at restoring 5 star app ratings and rebuilding organic growth for the audience on the web, amongst other key growth drivers.

FY23 promises to be our most successful year yet. We are launching an array of new product upgrades that should support acceleration in our consumer revenues, and we aim to drive continued growth in advertising revenues.

While consumer trust continues to erode across many sources of information, inspiration and connection, Tinybeans has never been more relevant than today as we continue to place our stake in the ground as a trusted member of the family, which parents can count on for relevant content, safe connections and private photo sharing to help parents raise amazing kids.”

Q4 Earnings Presentation + 4C Cashflow Report Here

For more information, please contact:

Eddie Geller – CEO
E: investors@tinybeans.com

About Tinybeans Group

Tinybeans Group Limited (ASX:TNY, OTCQB:TNYYF) is the only high trust app and web platform offering a personalized experience for new and growing families that helps them achieve their #1 goal in life–to raise amazing kids. Our purpose is bigger than simply making parenting easier. We help families thrive by giving them a safe, useful and inspirational place to go to capture and share memories, engage with trustworthy content and find thoughtful recommendations tailored to their family’s needs, interests and where they live.

Tinybeans engages 28 million mindful parents every month, enjoys over 130,000 5-star reviews in the Apple App and Google Play stores, and has been recognized by Apple for excellence in both content–top 3 most viewed and exclusive parenting partner for Apple Guides, and utility–twice being named U.S. app of the day.

www.tinybeans.com

FAQ

What were the key highlights from Tinybeans' Q4-FY22 report?

Tinybeans reported Q4 revenue of US$2.6M, a 5% increase from the prior year. Subscription revenue saw a significant rise of 111%, reaching US$480K, while advertising revenue fell by 7% to US$2.06M.

How did Tinybeans perform financially in FY22?

Tinybeans achieved a record annual revenue of US$10.9M in FY22, reflecting a 34% growth compared to the previous year.

What is Tinybeans' strategy for FY23?

For FY23, Tinybeans plans to continue focusing on subscription revenue growth and improving advertising strategies, despite potential economic challenges.

What was Tinybeans' cash position at the end of Q4-FY22?

The cash balance at the end of Q4-FY22 was over US$4.2M, indicating a solid financial position.

Is Tinybeans expecting to become cash flow positive?

Tinybeans intends to become cash flow positive within the next 12-18 months without raising additional equity capital.