Just wrote another straw with exactly this same line -> Who starts a 4C with a 20 slide PowerPoint unless you are trying to influence a message.

Maybe something like this: “While our first half of the year finished at -$0.2M Adjusted EBITDA (margin of -4%), we expect our second half of the year to have higher negative margins, due to the seasonality of the ad business, and planned investments in consumer marketing. We expect full year margins to be roughly in line with Adjusted EBITDA margins from FY21 (-22%).”

Higher negative margins. Great. At least the market was already aware and it was not a surprise.

One of pet hates is total addressable market (TAM) claims. A company I was looking at recently they were claiming their TAM services for every software license sold from a certain vendor globally. Yeah, sure it is, in a world with no competitors.

Same as the TAM claims on page 16 of the deck. TAM of USD15.8T – I mean really.

At least some things are going the right way:

• Revenues up 59% YoY
• Advertising revenue up 64% YoY
• Subscription revenue up 70% YoY, with the number of paid subscribers up 64%

There is reasonable cash available, but the business is still a loss proposition. As mentioned above, this was not a surprise. Interestingly the market liked the update although it's a long, long way from where it was 12 months ago.

“Tinybeans will move from its current model—a free experience for parents, with the option of upgrading to the paid “Premium” memories photo sharing subscription product—to an initial free trial experience. On completion of the initial free trial period, subscribers can transition into the new, more comprehensive subscription model.”

and

“Tinybeans expects a small reduction of monthly active users in the short term based on this change, however, expects no reduction of advertising revenues as it relates to this.”

The new model is called Beanstalk. I get it, they want to grow the subscribers, this is what all software companies want, and need. The change from a freemium model may have more of an impact than the company expects, although not to the existing paid subscribers as they will simply be migrated to the new Beanstalk.

This will be one to watch as the change happens in Q4/21.   

‘Beans is looking to list on the NASDAQ. With a current market cap of 56M this would make them a tiny, tiny bean.

Tinybean has been available on an over the counter basis in the US for about a year but now has bigger aspirations. This is aligned with the company subscription growth and US market growth strategy – almost 100% of revenue now comes from NAM.

To facilitate this change the company has had to change auditors.