where parents go

Q4-FY22 Quarterly Activity Report Fourth Quarter Fiscal 2022

(ASX: TNY; OTCQB: TNYYF)

Approved by the Board of Tinybeans Group Ltd

July 28th (27th in the US), 2022

Unless otherwise noted, amounts are in USD and are unaudited

FROM THE CEO

Q4-FY22: Continuing the Path to Cash Flow Positive

"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 cashburn 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."

Eddie Geller

Co-Founder and

Chief Executive Officer

2

FULL FISCAL 2022 SUMMARY

FY22 - Biggest Year Ever!!

+34%

pcp

  • Revenues of US$10.9M, up 34% pcp, largely driven by advertising revenues of US$9M, up 31% pcp and Paid subscriptions to US$1.5M, up 77% pcp. Other revenue includes Printing and Affiliate revenues.
  • 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.
  • Tinybeans intends on becoming cash flow positive. The Company expects to maintain a positive cash balance without raising further equity capital.
  • Made significant changes to the leadership team + changes in product, engineering and growth teams. All setting up for an even more successful FY23.

19

51K

#1

Contracts >

Paying

Apple Guides

$100k

Subscribers

Partner

(13 in FY21)

*Google, Meta and Amazon are on track to absorb more than 50% of all ad money (digiday.com)

US$M

Revenue up 34% to US$10.9M

$2.47M

$2.6M

$1.52M

Advertising

Subscriptions

Other

Total

Major Growth Drivers

  • Powerful value proposition for advertisers of high trust + first party data
  • Existing and repeat brands (64% repeat, 36% new)
  • Doubling Recurring Revenues with paid subscriptions

3

FOURTH QUARTER (Q4) FISCAL 2022 SUMMARY

Growth continues, revenue of US$2.6M

  • Revenues of US$2.6M, up 5% pcp, largely driven by advertising revenues of US$2.06M, down 7% pcp and Paid subscriptions to US$480K, up 111% pcp. Other revenue includes Printing and Affiliate Revenues.
  • Tinybeans advertising revenue was impacted by brands pausing, delaying and some cancelling campaigns due to macroeconomic conditions. The Q4 advertising revenue split was 22% from new brands and 78% from existing brands.
  • Subscription revenues continued to grow into the quarter, 111% up on 12 months prior and also 4% up on Q3.
  • Monthly Active Users (MAU) hit 2.94m, up 13% on Q3 - Audience from SEO 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 end of quarter was over US$4.2m.

US$M

Revenue up 5% to US$2.6M

$2.47M

$2.6M

$1.52M

Advertising

Subscriptions

Other

Total

4

ADVERTISING REVENUES

Unique Audience Demographics Supporting Strong Growth in Advertising Revenues

  • We serve consumers and help parents raise amazing kids. Through solving their problems, we monetize several ways including with advertising.
  • Direct Advertising grew 4% pcp to US$1.91M, while programmatic declined 60% from $0.4M to $0.16M. Driven by the intentional removal of certain ads in the app to improve the value proposition of the subscription product.
  • Advertising revenues* hit US$2.06M, down 7% pcp, with 22% from new brands and 78% from existing brands.
  • Q4-FY22advertising revenue advertising revenue driven by partnership wins withCooperVision, Hill's Pet, MGA/Little Tikes, Microsoft, VTech,
    Marriott and Paramount.
  • Closed 19 > US$100K contracts in FY22 (13 in entire FY21) with 10 of those at $200k+.

*includes programmatic

US$M

Q4-FY22 US$2.06M Revenue

Direct Advertising

Programmatic Advertising

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Tinybeans Group Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 14:36:07 UTC.