Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Tinybeans Group Ltd (TNYYF) successfully restructured its team, reducing full-time headcount by over 50% while maintaining agility and efficiency.
• Subscription revenue increased by 16% year-over-year, making up 59% of overall revenue, indicating a successful shift towards a more stable revenue model.
• The company achieved a strong retention rate of 91% for paid subscribers, demonstrating the value of its service to users.
• Tinybeans Group Ltd (TNYYF) launched new products like gift cards and photo books, which have shown promising early sales and potential for further monetization.
• The company executed successful marketing partnerships with major brands like Harvey Norman and Doctor Golly, enhancing brand awareness and reach.

Negative Points

• Total revenue decreased slightly by 2%, primarily due to a 14% decline in advertising revenue, reflecting challenges in diversifying income streams.
• There was a slight decline in total paid subscribers and monthly active users, indicating potential challenges in user acquisition and retention.
• The company is still in the process of scaling its marketing efforts, which may impact short-term growth.
• Tinybeans Group Ltd (TNYYF) faces the challenge of further reducing costs without compromising growth, as operating expenses have already been reduced by 20%.
• The company has limited resources and budget, which restricts its ability to target additional demographics like grandparents, despite their importance in user engagement.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Signs with TNYYF.

Q: Is the statistic of 90 memories uploaded per month a per subscriber figure? A: Yes, it is. We have broken that down to show engagement per paid subscriber over the month, which we believe is more tangible. (Respondent: Unidentified_2)

Q: How many babies are born annually in Australia and the US, and how does this affect your addressable market? A: There are about 4 million combined births annually, with approximately 3.5 million in the US and 300,000 to 400,000 in Australia. This represents a rich and regenerating market with significant growth opportunities. (Respondent: Unidentified_2)

Q: Is there any scope to further cut costs given OpEx has already reduced by 20%? A: There are small areas we are evaluating for potential cost reductions, but the major cuts have been made. We need to balance cost-cutting with continued investment in growth, particularly in marketing and product development. (Respondent: Unidentified_2)

Q: Are there plans to collaborate with celebrities or influencers to grow brand awareness? A: Yes, we are exploring opportunities for talent partnerships and ambassador roles. We have proactively looked at some big names, although they didn't pan out. We continue to consider these as part of our marketing strategy. (Respondent: Unidentified_2)

Q: How is the market responding to your strategic changes, and is there a need for more education regarding your share price? A: It takes time for the market to understand our strategic changes. We've been focused on operational changes and are now ready to invest more in investor relations to effectively communicate our story to the market. (Respondent: Unidentified_2)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.