Tinybeans Limited (ASX:TNY) Founder & CEO, Eddie Geller discusses the company's FY19 results, growth users to its platform, new services and strategy.
Anna Napoli: Hello, Anna Napoli for the Finance News Network and joining me today at our investor event in Sydney is CEO Eddie Geller from Tinybeans (ASX:TNY). Eddie, welcome to FNN.
Eddie Geller: Thanks so much. Hi Anna, great to be here.
Anna Napoli: First up, for investors new to Tinybeans, can you give us an introduction to the company?
Eddie Geller: Tinybeans is an incredible, simple app and web platform for parents and their families where they can capture these everyday moments, photos, videos, milestones, and share it privately. Through that experience, they can access content, products and services to help parents and their kids in the journey of parenting.
Anna Napoli: In terms of your FY '19 results, what were some of the highlights and what drove those results?
Eddie Geller: Fantastic. It's been a record year for us. We're really proud of the achievements. A lot of the growth stems from our users, so we hit 3.35 million registered users. Most of that coming out of the US. About 1.2 plus million monthly active. These users are fanatical really, and we've had great growth in our revenues. We hit just under $4 million revenue for the year, which is about 120 per cent record year in terms of the previous year. Largely driven by advertising, but we really had growth also in premium and printing. It's been a record year, but really we're just starting the journey. There's a huge amount of opportunity to really grow in the space.
Anna Napoli: Eddie, can you tell us about your services in more detail, starting with your family premium subscription?
Eddie Geller: The product is free to use and download, any parent out there can download the app and start to use the product for free. It's a wonderful, I guess feature set, that offers all the basic things that you need. Beyond that, you can upgrade to a paid premium version of the app, and the premium, first of all is family based, so if mum or dad upgrade, the whole family that they share that journal with get the premium features.
Just some example features of premium, the free version gives you a 30 second video limit. You want longer videos, you go the premium. You want to be able to have all your photos in his res, stored forever. That's also premium. There's also the ability to back up and remove the programmatic ads. Premium is this really rich experience that allows for all these additional features.
Anna Napoli: In terms of advertising, I understand that you've had a partnership with LEGO this year. Is that correct?
Eddie Geller: Yeah, absolutely. We're really proud of winning that. We started working with LEGO about March of this year, and LEGO approached us because one of the challenges was trying to make LEGO an evergreen and every day product with parents and families in the US. Because we're all about helping parents and their kids, especially around developmental milestones, we work with them on a program where we can then educate parents on, "Hey, your 18 month old, what are the types of products and content that can help them reach their two year milestones?"
Very milestone driven and very content driven and through that lens, we could offer them the ability to build trust with these users where they think of LEGO as not just a purchase that's once a year, but think about LEGO as an evergreen, everyday purchase, and that's really why they chose us to partner with.
Anna Napoli: Great, and can you tell us a bit about advertising? We've already talked about LEGO, but maybe some other partners.
Eddie Geller: Roughly 70 per cent of revenue comes from advertising, and really for us, it's about helping brands being able to integrate and offer their service and product into the platform. LEGO as you say, is a great brand, a partner of ours. We work with a whole bunch of others. Macmillan kids is a partner of ours. Every time they have a book launch around kids, it's integrated to the platform.
Anna Napoli: And in terms of printing the content for families, photos, what do you offer there?
Eddie Geller: The main product there is around photo books. Because every day or every week parents are uploading these moments, every year they want to be able to print them. Sometimes they're great gifts for grandparents to be able to have the physical book, so they often go in there and create a book, and it's a wizard, so it's really easy because all the photos are added. Literally from one click, creates the entire book and they can send it to print.
Anna Napoli: Turning to strategy now Eddie, can you tell us about your strategy and progress so far?
Eddie Geller: Over the next year and beyond, what we're looking to do is add much more feature set, add more value to the users. Some of the things we launched recently is around content and how do we help parents with content? Is it advice? is it parenting tips? Et cetera.
We're also looking to launch this year a shop, some commerce, because obviously we have a lot of information on them and their kids, there's lots of ways in which we can recommend, "Hey, here are the best products for your three year old" or, "Here's the best products for grandma to buy for their third birthday."
Anna Napoli: Eddie, turning to your share price, it's currently hovering around $1.15. What would you like investors to know about the share price over say the next six months?
Eddie Geller: The share price I think has been a solid, I guess, assessment of where the company has come from. I guess what we're excited about is where the potential is. Because if you think about parents and families and I guess the market opportunity of how much we spend on our kids, the market opportunity is huge. We believe we can grow into $100 million businesses, even a billion dollar plus opportunity that I think it can really, I guess provide a huge opportunity for investors.
Getting involved today I think is a great time because there's so much more upside. I guess we've been able to prove the value prop in terms of building out the audience and the revenue stream, and then when you have great media outlets like New York Times, BBC, and other outlets really mentioning us, and obviously the world of media and privacy being relevant, I think we're just at the early days and starting points.
Anna Napoli: Eddie Geller from Tinybeans, thank you so much for the update.
Eddie Geller: Great, thanks for having me.