Tinybeans Group Limited (ASX:TNY) Reports Strong Q2 FY25 Results
Quarterly Highlights
Tinybeans Group Limited (ASX: TNY) reported a robust performance in its Q2 FY25 Quarterly Activities Report. The Company achieved a 9% increase in subscription revenue, totalling US$0.80 million compared to US$0.73 million in Q2 FY24. The surge in revenue was fuelled by a remarkable blended renewal rate of 92% for paying subscribers, contributing to a record acquisition of new paid subscribers in December.
Cash Burn and Cost Management
The Company’s strategic initiatives also led to a significant reduction in cash burn, which decreased to US$231,000, a 40% improvement from the previous year. Tinybeans further improved its EBITDA to -US$445,000 from -US$788,000 in Q2 FY24. Operating expenses saw a decline of 21% year-on-year as the Company streamlined its operational costs following a restructuring completed in September 2024.
New Monetisation Channels and Partnerships
Tinybeans introduced Tinybeans+ gift cards, which are aimed at generating new revenue streams. The early response has been promising, and the Company is exploring business-to-business opportunities and partnerships, including collaborations with Harvey Norman and Dr Golly. Additionally, upcoming marketing initiatives include partnerships with Babylist and Bounty Bags to enhance subscriber growth.
Executive Comments
Zsofi Paterson, Managing Director and CEO of Tinybeans, stated, “In Q2, we completed a major restructure to reduce our cost-base, focus our business and team around the core subscription product. We had another strong quarter for subscription revenue, with a 9% year-on-year growth, inline with our go-forward strategy.”
Outlook
Looking ahead, Tinybeans aims to leverage its revitalised marketing strategy along with partnerships to drive subscriber and monthly active user (MAU) growth throughout 2025. The focus on maintaining a solid cash position, which ended the quarter at US$1.87 million, reinforces the Company’s strategic direction.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Tinybeans Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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