TNY - Tinybeans Group

[System]

Tinybeans Group owns and operates Tinybeans, a mobile and web-based social media platform that allows parents to record and share precious moments and milestones with family and friends privately and securely.

Through the Tinybeans experience, users can also access rich content, and are offered products and services that are based on the age and stage of development of their child.

Tinybeans currently has more than 1,500,000 registered users, over 540,000 monthly active users and over 130,000 users using the Tinybeans "Family Premium" paid subscription service.

It is anticipated that TNY will list on the ASX during March 2017.

http://www.tinybeans.com

 

[kid hustlr]

The wife uses this to keep in touch with family about how our little one is going. it's a good idea in my view.

 

[skc]

The wife uses this to keep in touch with family about how our little one is going. it's a good idea in my view.

I have 3 kids in the last 6 years and haven't even heard of them. So I guess on the negative side they need better marketing, and on the negative side there's plenty of growth ahead?!

Doesn't sound like there's a huge barrier to entry, does it?

P.S. When I saw the name of the company all I can think of in a chocking hazard.

 

[kid hustlr]

I have 3 kids in the last 6 years and haven't even heard of them. So I guess on the negative side they need better marketing, and on the negative side there's plenty of growth ahead?!

Doesn't sound like there's a huge barrier to entry, does it?

P.S. When I saw the name of the company all I can think of in a chocking hazard.

My wife heard of them through a friend. The concept is solid in that you want to share baby pic's etc but the idea of having 500 facebook strangers looking at family pictures is weird.

 

[verce]

https://itunes.apple.com/us/app/tinybeans-family-album-book/id521633042?mt=8

https://play.google.com/store/apps/details?id=com.tinybeans&hl=en

ASX: TNY – the number one social media platform in the world for parents - experiencing viral and organic growth via word of mouth. Featured on the front page of the US App Store in Jan 2018. Also featured in the UK and Ireland App stores as “App of the Day”.

Turning operating cash flow positive during calendar 2019 – they have just appointed John Dougall as Non-Executive Chairman. John has taken ASX technology companies from zero to over $100,000,000 per annum in the past.

"We think the US has enormous growth potential and we really haven't fully saturated the market yet"

Market Cap ~$10 million AUD

The market cap is tiny, and the unique data they have access to is very, very lucrative for advertisers. The Top 20 own 75% of the stock.

3.1 million members in over 200 countries, and once a customer signs up, the brand loyalty is very high.

Partnerships including Macmillan Books, Pottery Barn, Scholastic, Canon, Walt Disney, Walmart, Nike, General Motors, and Macy’s who can use the platform for targeted advertising.

Snapchat started out with less traction than this. The only thing that worked for Snapchat was word of mouth (which is what TNY is doing). It took a bit of time to get going but it eventually snowballed into the 12-billion-dollar giant it is today.

This will be one of the biggest turnaround stories of 2019. I truly believe it. The CEO is fully committed and always happy to answer shareholder questions.

 

[JTLP]

Just read the quarterly, they’ll have an estimated $500k cash at the end of this one, spending circa $1.5m across it. $1m of this (same with most quarters) is staff costs [emoji33].

Cap raising soon unless they get more wild growth?

 

[verce]

The number one social media platform in the world for parents - experiencing viral and organic growth via word of mouth. The market cap is tiny, and the unique data they have access to is very, very lucrative for advertisers. The Top 20 own 75% of the stock. 3.1 million members in over 200 countries, and once a customer signs up, the brand loyalty is very high. Turning operating cash flow positive during calendar 2019.

 

[verce]

There will be an investor roadshow in Sydney on Tuesday, March 19, and in Melbourne on Thursday, March 21.

 

[JTLP]

Average staff costs of $150k per person. That’s the problem with Aussie businesses, people want to pay themselves fat before making their startup thrive.

 

[verce]

I don't think that's fair. They need to attract talented individuals and decent remuneration is key. That's the reality of working in tech. It's built on the people.

 

[verce]

I've been keeping tabs on the rollout of the app - and while it's clear they are doing very well in the US - this is really only the beginning of their market penetration. There's massive traffic coming through the app and it's all been via word of mouth (which is why they are closing revenue contracts with Fortune 500 companies).

Chairman John Dougall said in his recent letter to shareholders that he has taken several technologies "from zero to over $100,000,000 per annum. I believe that the Tinybeans offering has global potential."

I'm inclined to agree looking at the stats. Here's a recent cut (compared to next closest competitor Lifecake which was acquired by Canon):

They haven't even begun to look at countries outside the United States - "our current focus is on the 35 million young families in the USA. We’ll look at other markets once we capitalise on the significant potential of the US"

Now imagine if they switched on their marketing efforts for mainland Europe or Asia... That growth would be HUGE. And I dare say families in Europe and Asia are at least as invested - if not more so - in recording and maintaining a positive family journal that works as a secure, digital keepsake. A digital keepsake that doesn't fade away like an old photo book. Do not underestimate the tremendous power of keeping a family history and heritage. It's part of the human experience.

This is only $10 million market cap and every day I see crap companies with no growth or revenue prospects pushing a market cap ten times this price. They made ~$1.7 million in revenue for the half year, which is almost as much as the Company delivered for the entire FY18. They have repeatedly reaffirmed their commitment to turning operating cash flow positive during calendar year 2019.

I suspect the lack of interest is due to the tiny amount of shares on issue (circa 32 million) with almost 75% ownership by the Top 20 (off the top of my head).

 

[verce]

Please note that Tinybeans now has 1.1 million Monthly Active Users (MAU) - so no longer at 0.8 - but the market cap has actually declined to 7 million USD (half what is on this chart)

MAUs have room to grow - but we must remember that the value of each user is probably far significantly higher than comparative social media companies. To quote Independent Investment Research:

"We would make the point that the TNY active base is probably at the more lucrative end of the spectrum given the very targeted and specific nature of the app and the nature of its user base interaction combined with the high usage per month levels."

Once a customer signs up, the brand loyalty is very high. Over 90% of Tinybeans members would purchase a product or service that Tinybeans recommends. It has the first touch of the millennial parent demographic (much like Afterpay) and these people are just coming into their prime income-earning years.

 

[galumay]

Their website is disgusting, that was enough to put me off! Not sure why this is so common in the space, at least go and spend some money on quality web design if thats your core business.

I am also very dubious about the penetration they can achieve, there are so many other platforms for sharing multi media that are already more embedded.

The employee costs are very high too, maybe as they scale up they can afford it, but they cant at this stage. It also plays into the poor website, what are they paying them so much, for?

Mind you, I am a notoriously bad judge of these sort of tech, growth stocks. I have passed on most of the ones that actually ended up becoming speculative success stories. The success rate is so tiny and most end up forgotten and nothing more than proof of surviorship bias and I struggle with the asymmetric risk that is in opposition to what i look for!

 

[So_Cynical]

Their website is disgusting, that was enough to put me off! Not sure why this is so common in the space, at least go and spend some money on quality web design if thats your core business.

https://tinybeans.com/

That's pretty standard for modern landing page sites, somewhat minimalist, scroll down and stuff appears, keep it simple.

 

[verce]

I think the website is fantastic and intuitive. Simplicity and elegance is better than over-engineered garbage. But I guess some people prefer animated gifs and videos firing off on all fronts.

If you doubt their marketing prowess, just watch this 2019 video that was soft launched in February.



https://tinybeans.com/about/team.html

In other news, there's a new interview out today with Medium (very significant global profile and readership)



S.J. Kurtini created Tinybeans in 2012 after moving overseas and realizing other parents would value the ability to store precious memories of their children and share them with a private network of loved ones in a trusted, happy place. Since then, the app has evolved into an all-in-one destination that provides a safe and loving space for parents to document their child’s lives through photo sharing, journaling, milestone tracking, and photo album printing. As Tinybeans’ Co-founder & Head of Product Marketing, S.J. brings over a decade of experience to her role as she held past positions in social media and marketing at M&C Saatchi and Drum.

 

[JTLP]

Verce do you have any interest in them? You’re definitely batting for them here.

I’m not fully sold. Invest more in the company. People don’t need cash as an incentive to work; why not give them options? Better way of hitting targets.

 

[verce]

Hi JTLP

I am a long-term holder and I've been following this from September 2018. I think it's extremely undervalued and the fundamentals are very strong. If you can get in around this price, it should be well-rewarded in the long-run.

People need cash to live, mind you. And options are already on the table and can be exercised at varying price points above $1. Rarely do you see a company with the Top 10 owning ~70% of the stock. They are very much aligned with shareholders here.

TNY has proven it can generate advertising revenues from the platform (closing one of their biggest contracts ever at the start of this year) and its advertising initiatives are highly effective. There are 125 million babies born each year.

EXAMPLE OF THEIR E-COMMERCE POTENTIAL FROM TODAY:

 

[Ann]

...This seems like a good niche idea, a baby Facebook. The only concern I have are the pedophile rings that may flock to this site. Hopefully it will be secure for only known family and friends to view the children.
So far the company has gone nowhere in two years and on the chart the Positive Volume Index is falling, it may rise above its 200dsma by default soon. Perhaps some roadshows and Verce on the job may see the volumes and price pick up a bit. Might be worth watching for a bit of a pump.

 

[tinhat]

Their website is disgusting, that was enough to put me off! Not sure why this is so common in the space, at least go and spend some money on quality web design if thats your core business.

I am also very dubious about the penetration they can achieve, there are so many other platforms for sharing multi media that are already more embedded.

The employee costs are very high too, maybe as they scale up they can afford it, but they cant at this stage. It also plays into the poor website, what are they paying them so much, for?

Mind you, I am a notoriously bad judge of these sort of tech, growth stocks. I have passed on most of the ones that actually ended up becoming speculative success stories. The success rate is so tiny and most end up forgotten and nothing more than proof of surviorship bias and I struggle with the asymmetric risk that is in opposition to what i look for!

You may be a dinosaur like me and surf the web "old school" on a PC/laptop. Most websites these days are designed to be primarily read on mobile devices.

(Source: ABC).

 

[Smurf1976]

Their website is disgusting, that was enough to put me off! Not sure why this is so common in the space, at least go and spend some money on quality web design if thats your core business.

I'm not seeing the problem here?

I'm no web designer but at least it's not like those newspaper sites with videos starting up all over the place and one article split into 20 pages just to waste time and increase the number of links clicked on etc.

They could do far worse than what they've done.