Tinybeans Group Limited (TNY) Earnings Call Transcript & Summary

All right. Well, hello, everyone. My name is Eddie Geller, Co-Founder and CEO of Tinybeans, and I'm really excited to be catching up with everyone today and give them an update on where the company is going and what we've been doing and where we're heading. So I'll spend about 15 minutes talking a bit about the results and more importantly, the company's performance and where we're heading into the future and how we're tracking to that. And then we'll open up Q&A at the end of the call. So there's a Q&A box in the Zoom. So feel free to use that throughout, and there will also be time for questions at the end. I've also got Chris Motsay, our new CFO, who joined just over a week ago, also on the call, and I'll welcome him later on to join me in the Q&A. So firstly, again, your massive welcome -- you're -- welcome to our existing holders that know the story very well and also welcome to some of the new people that don't know the story particularly well also provide a good of an update of where it's at. So this was just posted little while on the ASX. So this is part of the press. So I'll walk you through the company's performance, our results, and we'll take it from there. And I'll be then happy to answer questions later on. So for those of you that know a little bit about us, Tinybeans really is known for really this incredibly private wonderful app for parents to be able to capture moments every day and share them with family over the world. And there's some screen shots there that sort of demonstrate that. We also acquired a company called Red Tricycle over a year ago around content. You can see the screenshot at the top of end content. And that's really what we have known for sort of this app, and we have content. Really what we're doing is really expanding that to be much more for parenthood. And these other screenshots really represent that. So it's a really important sort of understanding lay of where we're heading as a company, going from an app and content platform to really a whole experience of parenthood. And this really brings some of those ingredients together to really for you to appreciate what we're doing, where we've come from, but really, more importantly, where we're heading. And I'm going to talk about these throughout quite a bit over the next 15, 20 minutes or so. So at a glance, the company, we started on a very intentional strategy around growing a recurring subscription revenue stream that really complements the advertising revenue stream. So as everyone knows, we have a very strong advertising business, and really, as part of that growth, we're also looking to grow our subscription business. And before I sort of unpack that in more detail to give you a headline into the last 3 months, the business has gone very well over the last 3 months. It's a -- it's the seasonally weaker quarter, as we all know, in the calendar quarter. Brands reset their budgets extensively. And because we're working with obviously larger brands, larger budgets, takes a little bit of time for that to be going. So fully expected the last quarter to be where it's at. So you can see, we just had $2 million in revenue, 58% on last year's revenue, and everything was up. Advertising revenue, subscription revenues increased and then also, that subscription revenue, I'll talk about it a bit later, is still the old premium product or the memories only. So it doesn't have any of the newer things that we're launching over the next year -- well, we've just launched over the next 3 to 6 months, and I'll talk about that later. So it's still very much the old existing product. E-commerce revenue grew nicely. Again, it's still very small, relatively speaking, but grew nicely. And overarchingly, the audience grew relative to the same period last year. Again, the audience tends to adjust a little bit seasonally based on the content being consumed by parents, that's adjusted through the quarter. So it's still very much up on last year. And from a cash perspective, again, fully expected the cash burn to be up in the quarter given the lower revenue, and we're still investing in the future growth. Definitely, the cash burn was there, and I'll talk about that more as well. Cash balance ended up $3.3 million. But overall, it was a really strong quarter in terms of closing business. Hopefully, everyone saw the announcement we shared yesterday, very exciting large contract we won with health science amongst many. But really, we've had a record forward book contract. And I'm going to talk about what that means in terms of this quarter, I guess, our Q4 fiscal and the next quarter moving forward shortly. But really, overall, in the U.S., we've got some really big growth drivers. The vaccination-driven recovery is very much coming out. We've had really great growth coming out of our local business. Lots of activity in local travel in the U.S. extensively, and that's also driving interest in terms of us having this wonderful platform of 4 brands, 4 brands to be integrated to a local community to serve parents, of course. So that's really been strong we've got the structural shift in online advertising. Lots of changes going on, maybe you've seen to your Apple in terms of tracking and lots of other changes in terms of privacy. We're in a great position because we have this wonderful product that parents obviously give us lots of information on that we can use that first-party data to target. And that, again, that's part of the strength of the platform. And really this really exciting, I guess, growth in terms of the subscription business. And again, I'm going to talk about that in a more detail shortly. So overall, the last 3 months has been very solid. As I said, sales revenue, ad revenue, other revenue in terms of printing e-commerce, have already sort of broken that up as is still fairly small, and we're really not expecting to invest in that until later this year into next year. And as we invest, and we'll start to see those numbers grow, we'll definitely look to unpack them in more detail. And then in terms of the other side, active users grew, as I mentioned, both across the platform relative to 12 months earlier. And on the subscription side, just business as usual. So none of the investments we're making today and have made the last 3-or-so months have really driven that subscription revenue. That's just basically just in time. It's the same subscription premium product we have and the memories space for the last 3, 4 years, we've not invested in, but that's changing this year, and I'm going to talk about that in detail. We're incredibly excited about what that means. And we fully anticipate that to grow and really accelerate through later this year and into next. So as just unpack the revenue growth in a bit more detail. We continue to serve these wonderful brands. Some brands, we've really contracted through to the year. Some brands would be going some smaller campaigns and into obviously other campaigns throughout the year. And what's exciting, and this is actually in more detail shared in the 4C we shared. But typically, we do about 15 or so large bids every quarter, over USD 100,000. For the last 3 months, it's the first quarter calendar or Q3 fiscal, we doubled that. So just to show you that large brands coming to us for larger deals is happening much more than ever before. So because of that, it takes more time. Obviously, there's a whole process to basically work with the brand and the agency around it. But it's really exciting because we've never been in this position as you probably saw last year. Some of the numbers were like, we had a handful of basically counts of 100,000. That's probably going to like 3, 4x this year. And again, it just talks to the value prop what we're doing for brands in terms of this brand trust, brand safety and its first-party data value prop, and obviously, how we can work with them in this year. These are existing clients we're currently working with and continue to expand the overarching business. So the advertising revenue was solid in the quarter, but really expect much more to come through this quarter and next. So just on that, we thought it would be important to give some more color rather than be silent on it. So I'm a big fan of being as transparent as we can be. And given we have a great result in terms of forward contracts that are already closed and contracted, this quarter looks like it's going to be a record quarter. So you can see this in the chart on the right. Basically, it has our Q4, the current quarter, which has basically locked in contracts of what basically is already there. So it really looks like it's going to be a record quarter. And we've just begun. I mean, we sort of, I guess, the last week of April, still a whole 2 months left of the quarter. So we'll expect that to be even hopefully better than what you're seeing today, so it's really got to do with signing contracts with Hill's, Kraft Heinz, Amazon, a bunch of other brands that we've signed successfully and continue to commit through later on this year. And as I talked about earlier, not only is this signing contracts to these brands today, but we're signing -- we're basically responding to proposals and pictures on deals for the rest of the calendar year. And as I mentioned before, much larger proposals, many more of them, and you can see a qualified pipeline of $4 million alone in the next 60 days. That will -- that one -- all that, I guess, that money won't all run in that 60 days, of course. But we're going to look to close as much as we can and run throughout the remainder of the year. So it's just a -- the company is in the strongest position ever as it relates to building a really strong ad business, a really strong value prop to these brands. But also underpinning that with really investing in the future strategy. So let me talk about that more, in more detail. So in terms of, I guess, some of the financials. So adjusted EBITDA basically means that if we didn't invest in the future revenue streams of the business. We will be profitable. But we're not here to do that because there's significant upside and significant growth opportunities here. So we -- in the last quarter, we continued to invest in the future revenue stream of the business, continued to invest in a range of this product, which I'll talk about later on. But again, it's the core things I talk about, the content platform, the community platform, the memories, the subscription experience and also investments in advertising, all of those areas are being invested in. So it's not just about basically just one and that's it. As you see and we've shared earlier, we're building a business for multiple revenue streams that are really scalable. And that's really, I guess, a key part here. So for us, the cash burn, you can see was $1.1 million for the quarter, which is, again, in line with what we had expected, given the seasonality of advertising. And the team costs remain largely unchanged. We continue to invest in the team, continue to believe in the future, I guess, the potential of the business. And again, you can see that return coming to already. The fact that we're is starting a quarter with the revenue already at a record. It shows you the strength of our business. And again, as I said before, it should be even better, and it's going to set us up for other quarter success as well. And as the revenue continues to grow, we'll continue to be confident around these investments. And again, having these balancing act in terms of investing in the current business and obviously driving the future scale and growth of future revenue streams, which we fully expect will start to happen in the subsequent quarter. So one thing I just wanted to point out, though, is that Q3 cost is largely unchanged in Q2. But we definitely see increasing cost this quarter, largely to augment some of the team to continue to invest in these areas around subscriptions. So on subscriptions before -- for us, we invested in the product side, but now we've have to invest in the marketing side. Product marketing, conversion, retention, testing, there's probably questions around where we're going to start paid media, so there's a bunch of our testing we have to do around that before we look at scale, the paid media into next year. So again, there are things we'll start to invest in this quarter. So we'll expect the cost to -- and to go up a little bit this quarter. But again, the revenue is up as well. So still very confident with the cash burn. We don't extensively expect it to be significant this quarter at all you can see we finished the quarter at AUD 3.3 million as of the end of March. In terms of our journey so far, I'm not here to talk about sort of the full history of the business, but I think it's really important to understand the last couple of years and where we're heading. As we're setting the scene. So as everyone knows, has been around for a little while, largely driven by our app for memories, obviously, focused on parents of 0 to 6 year olds and really have this incredible word of experience for parents. Acquired Red Tricycle a year ago, again, content platform allows parents to be able to engage it with older children. And really, for us, it's about taking that and really combining that with the Tinybeans experience. The last 12 months, obviously, 2020 was about bringing on board a new leadership team, really building the foundations of our merging the operations and scaling the growth. And so this year and beyond is about really cementing the platform. And the platform is around these financial services, the advertising, the subscription and really add other things on top of it, you probably say about commerce and marketplace, et cetera. So it's not -- so it's really important to understand where we've come from, but really more importantly to but where we're heading. So as everyone probably appreciates, it's a very large market we're going after. So the parent market, there's 72 million millennials in the U.S. alone, basically. They start on the device and go to bed on the device, and really servicing them is really incredibly exciting. And obviously, augmenting the whole pit as well that we announced yesterday. And that's a whole another dimension. And again, we'll launch a whole bunch of features there. But once we -- they are commerce and other things next year, again, will open up that opportunity. But just focused on the core parenting market for now, it's big, and it continues to be big. And still, we feel that there's really no brand that really connects parents or synonymous with parents. Today, still a lot of parents start with the generic search engines to find answers, to go to places, to find solutions, to find other ways to address the challenges and opportunities with their kids. We are planning to create a platform that Tinybeans will be the default place. It's going to start with us. And then you figure out what to do this weekend or a product to buy, how I'll find another period that does this, is this normal to do x, y and z. So that's really about where we're heading. But with this platform, this market really gives you a context about the business we're building. Bit about our audience, don't want to spend too much time here, but really, we have a highly affluent audience, they're really a key thing to do whatever they can for their children. So high propensity to spend, high propensity to engage and high quality content, high-quality services. And it just really gives you a sense as to the audience we have today, and we're going to build off the back of it. So we feel confident that we can build a subscription business at servicing this. And this is why brands want to work with us because we have these types of parents on our platform. So I've shared this slide before, but again, it's so important just to sort of basically keep on replaying it because we're not just basically growing a subscription business. We're growing an ad business with a complementary subscription business, and they complement each other. And as we basically launch services and launch new experiences, it's really about bringing those 2 worlds together. And as I've said before, and I still remain to say this that we fully expect to see the percentage of subscription business and consumer revenue to be just as much as advertising in the next handful of years. So definitely see this as sort of a very important intentional strategy, and the services we're launching is around really leveraging that. So on the consumer side, memories, as everyone knows, that's sort of the heritage of the Tinybeans core app, and that features being enhanced there and plan to be more enhanced the next 3 to 6 months. We just launched a premium content experience called Beanstalk, very exciting, and you can check it out. It's basically -- it's just for parents of 2 to 3 year olds. It's exclusive content. It's a paid subscription, where basically you have a 30-day free trial, and you can try the service, of course, and get basically e-content in your inbox every week. Dedicated to parents of 2 to 3 year olds. And over the next handful of months, we're going to be expanding that to all age groups. But we just launched it with 1 -- to basically just to, again, test, iterate, learn, test, iterate, learn. And that's really our philosophy across all of this. We also launched a community experience. A video-first community experience where through video, you can engage with other parents and other like-minded people. So again, that's launch that's currently in a beta group. But you'll see these services all together through the course of this year. And again, I'm going to talk about that in detail here. But really exciting that these services are starting to come together, and our plan is to bring them to the end of a single subscription product. So Beanstalk, it's there today. You can check it out. It's recommended content. And you can start to see the sort of the importance of tailoring, so an exclusive. It's a high-quality content exclusive to you that's highly tailored to you based on the age and state of the child. Community. There's a whole range of features we're launching off the back of basically the base features we've launched already, a video-first community experience. And again, you'll see they'll start to be expanded to larger audiences and larger groups. But today, it's in a beta group. And again, lots of testing, lot of iterating, lots of figuring out what's working, what's not and obviously, engaging with the community before we look to expand and scale it. And then Pet Parenthood. So for years, basically, we had families coming to us and say, "Hey, I want to be able to add my dog and cat, et cetera." And there were limited ways to do that. And basically, through a recent partnership, we felt compelled that it was a great time to launch that today. So basically, in the next handful of weeks once that feature launches, you'll be able to not only be able to add your children, but also be able to add your pets. And the data has shown us that a lot of parents start parenthood with pets. I mean, I did. I mean, my wife and I had 2 black labradors before starting a family and now we have 4 boys, right? So it's not uncommon that basically, you start with pets, and that's Pet Parenting, and we see Tinybeans as experience for them. And as they -- if they decide to go through the journey of having, obviously, children, well then obviously Tinybeans can serve their needs also. So it really expands the whole market to Pet Parenthood and also prenatal, when you obviously become pregnant as well. So a lot of ways in which we can acquire, I guess, the consumer earlier, engage them, retain them for a longer period of time. So this is sort of a -- it's a single sort of slide that I think it's really important just to pause for a second and take in because it's really, I guess, strategy on a slide, you could call it. It's how we intend to bring all these services together and launch them through the course of this year. So as everyone knows, I mentioned before, we have the Memories experience, there's Beanstalk that we've just launched, the community experience and video. And basically, there's this sort of, I guess, free experience today, right, which is the largest audience. So today, it's on redtri.com and basically, it's an experience to go and get wonderful content that's discovered for free, same with the Tinybeans app, there's content you can discover for free also. Whereas the Beanstalk is really a tailored paid content experience. Over the next 3, 6, 9 months, you will see these services fold into each other to offer a single subscription. So in the case of July through December, you'll see these services folded in. So by the end of the year, if not hopefully sooner, it will be a single subscription product for Memories, Content and Community. The one thing I want to point out is that there will always be a free discovery content experience. And that's really important for people to understand that. And these are services are going to be folded in together as the platform grows. So now it probably takes a little while to sort of consume this, understand it, but really it's an attempt to really demonstrate to, I guess, all of you of our intention to build this, I guess, subscription business and really leveraging the audience we get today. I mean, we get millions of people through the site every day consuming content. And we want to be able to engage them, retain them, find reasons for them to come back and then clearly hopefully engage them enough that they'll sign a free trial and then drive a subscription experience. And that's why we feel confident that this can be a very large business in not a long time as we have the services for parenthood. And when you look at the end of this year, having this product for parents and think about the photo being the treasure holes is like the first photo, finding basically relevant content for me is appearing, be able to engage with other parents like me with video and to be able to find parents are going through training and their challenges and all sorts of the wonderful things that parents go through and need. We feel that this is a powerful product that really is compelling for parents that they'll be able to, subscribe to, gift to other parents. And when you do have a parent that's having a child or have -- or just about to get a pet, you can gift them a Tinybeans subscription. And that's really the way we think about it. So beyond the product side, there's a ton of a lot of things going on. So as we sort of shared in the August presentation where we started our fiscal, a ton of fundamental services and fundamental investments we're still making. So world-class sales is a really key theme internally. How do we continue to invest in our world-class sales team, processes, propositions, the ability to obviously have systems to help us. We just upgraded the sales force system, which has been very successful recently. So again, then I'll continue. Marketing, I already mentioned some of the things already in terms of the content, the e-commerce that will continue to grow. And you'll see evolutions of the brand, right, because today, you've not yet seen changes. So if you go to the app store today, you look at Tinybeans it still says what we are, which is basically a family album of sorts. Fully expect in the next 3, 6 months of beyond that it's going to evolve, right? It won't just be that. So that's some of the work we're doing in marketing. Product already mentioned a handful of things and products. There's a ton of things going on in terms of community and obviously, bringing the content together and also a public profile, right? Because today, Tinybeans, if you're a user, it's a private profile, invite only, right? But you'll have a public profile, too. And obviously, you'll have full control of that. You'll be able to figure out who can see that. And that's also part of this experience. And not only is it going to be -- so traditionally, as most people know Tinybeans is limited to your family network. But with this public profile and the ability to sort of invite people from all over the world, it doesn't have to be private, although it's public, and you'll have a public view of that experience and obviously, be able to control that. So I'm excited about that. We feel that, that's a very great opportunity for viral growth. And users referring users, whether not you got 8-year-old, a 9-month-old or a 3-month old kid, frankly. So really, we see that as a great viral opportunity. And then obviously, underpinning on that, ton of investments in the technology side, how do we build scale in video, of course, how do we get performance across the platform. We started a whole bunch of work in some of the analytics in terms of the recommendation engine. And we mentioned this a little bit -- a couple of times in the last handful of years. We've recently brought on board a data scientist that basically is there to help us, look at all the data that basically we have, look at how people interact with it, and then obviously look to recommend certain things. So like someone seeing a piece of content, it will be like other parents that look, this content also recommended also read this content and things like that. So very exciting stuff in terms of technology. And then in terms of people, I mentioned, we just brought on board a new CFO, Chris. We recruited Allison earlier on this year in terms of the CMO, and basically, we're supporting a hybrid world of work. With vaccinations being rolled out in the U.S., we're not forcing everyone to come back to the office, although we don't have an extensive amount of people in New York, although that is the biggest space, but will support a hybrid work, where people can be in the office, people could be at home and really support everyone wherever they can be and really obviously look to drive it. So really happy with the performance set out across our execution priorities, but we're not done. There's more work to be done through the course and through the end of this year. So as I sort of wrap up the company and where we're at is really we're in a great situation and really great position to take where we are today and really build up the back of it. So with this trusted brand that we talk about and really -- that's there, and it will continue to be there. And again, just a reminder that all the metrics and all the numbers I talked about in terms of audience are all done based on organic growth. We haven't spent any money on paid acquisition or any money on paid media. So you must understand that basically the fact that we have these numbers on pure organic measures and channels through SEO and word-of-mouth is incredibly powerful because when we look to turn on paid media, we fully expect and hope that this will scale and grow, and it will, of course, right? Because that's what paid media does and through testing, obviously, optimizes that. We've got a growing audience and really an excited audience for this. We do a lot of evaluation with our audience in terms of what they're seeing today and looking to help them understand the broader value property on the photo and beyond content to really be much more for parents. We've got a really a wonderful platform that I think we can build lots of great services for, for parents and for brands. And I mentioned some of those already, but I think we're in a great position to do that. I think all that combined can really build on a wonderful business across this diversity of revenue in terms of both the advertising business, which we know, and they will continue to grow really well, but really the consumer subscription side that we really feel strongly about and really having both of those together. So it's a really exciting time. I definitely -- welcome, everyone, getting involved or getting more involved if you are not already. And that sort of your wraps up, I guess, we're at today. I'd be happy to open up the floor to questions. So before we do that, I'm going to invite Chris to turn on his video and just say a quick hello to everyone, and then we'll open up to Q&A.

Thanks so much, Eddie. I just wanted to wish everyone, our friends and colleagues in the United States, a good evening. Now our friends and colleagues in Australia, a good morning. So as Eddie had mentioned, my name is Chris Motsay. I'm the new CFO of Tinybeans. I've been here a little over a week. And so I am certainly still in the process of getting immersed in the numbers and the story of the company, but I just wanted to come on for a minute and tell all of you how excited I am to be here to partner with Eddie, partner with a very talented leadership team to help fulfill the potential and all of the opportunity that this brand and this company has ahead of us. And I think the future is very exciting. There's a lot of things that are untapped that we plan on tapping and unlocking in the near future and cannot be more excited to see what unfolds in the next several quarters and beyond. And so I look forward to helping where I can and getting to know many of you and establishing those relationships over the next few quarters. With that, Eddie, I'll turn it back over to you.

Awesome. Thanks, Chris. So okay, great. Let's get into questions.

We've got a bunch of questions being posted. So I'm going to just read them out and go through them in a best format. So any plans to launch a self-serve advertising model, like Facebook and Google to our smaller brands to advertise on the platform? It's a great question. I think it offers an amazing opportunity to do that, one day. I feel that today, we're not really at that scale and really be able to offer the tool set for brands to be able to do that. But we definitely hope to in the future, especially as we serve lots of local brands and they see lots of value in the platform we have. So we feel that in the years to come to build this marketplace, they'll experience where brands can hop online, be able to sell when it get to moms in Atlanta with kids 5 and under and add some, obviously, creative and then the algorithm and the platform can start to sort of shore that up. So I definitely see that as a future. I'm not exactly sure when, but definitely, I think it's a tremendous opportunity. And again, layering in not only advertising but also commerce, ability to have listing fees and transaction fees off the back of products that people are buying or or classes they're booking. So it's not just about basically advertising, actually, I would see value in having like a brands adding experience, adding their products. And we're basically helping them sell-through obviously their targeting and we can get a transaction fee, a bit like in a way. But again, no firm plans today something into the future. Great question, by the way. Next question. Does our growth investments include CAC? And if so, how much of that last quarter was attributed to CAC? Obviously, the cost of acquisition of a customer. So in short, zero. So we haven't spent any money in acquiring the customer in the last quarter. So all the metrics that we've shown before in terms of the end result of revenue and obviously, the audience are all driven by organic means. So zero is spent on -- or spend on cash in the last quarter. Having said that, we'll have something this quarter, that's still very minor, again, just to begin testing, if anything, maybe at the late on the side of the quarter. But really, that's the plan is into next quarter to -- or sorry, next fiscal to begin the process of the pet media plan. So -- and that will be sort of a slow growth, testing, iterating, learning and scaling. But so far, zero has been spent on that. Okay. Next question. With the video-first community, will there be a chat function, what if parents aren't comfortable putting themselves on video? Look, it's a great question. We feel that today, based on, I guess, millennials and servicing parents that are millennials today, we think that video is just a wonderful way, which parents can consume content and create content. And so far, the metrics are quite pleasing where parents are sort of comfortable in that because they know that other parents are consuming that content as well. Having said that, there's definitely a challenge where people don't necessarily want to post things and videos of themselves. And that's totally okay as well. It doesn't mean they can't help the community in other ways, et cetera. We may look to evolve the experience later and add other features like chat and be able to post things, but we're really trying to stay true to our focus around video because I just think it's such an incredible experience. And I think that if parents really feel comfortable in this space, where we're basically -- they're connecting with parents that are like-minded or same challenges or opportunities to them as their kids, and they're seeing other parents do it, our testing has so far shown is that they will be okay to post as well. And again, some people will be posting more, I guess, more real things in terms of reality of what's going on in the house and other people will be more I guess, watchful in terms of what they post. But definitely, we're going to start with video early. We think it's a great differentiator. And just a great way to consume content as a parent. That's really a key part because my parents, time call, when to be able to get to and as quickly, we feel that that's a good one. But definitely, there are opportunities to increase that over time. Another question, any insights on why the MAU has come off a bit since Q2? So the main reason for the Q2 being, I guess, it's come up from Q2. Q2 was 4.8%. This is 4.2%. It's based on the seasonality of the content, right? So if you think about the redtri.com website and large driven by that. So a lot more content is consumed in the holiday period, a lot more advertising is created, a lot more advertising is basically consumed people are shopping, finding things to do, holidays, et cetera. So more content is created and more things are being solved, so to speak. In Q1, it's less about that, right? It's winter months in the U.S., typically. It's different type of experiences. So we definitely fully expected that to come off in terms of that the content experience, and that's really the driving force between the -- that coming off in that quarter. Having said that, again, it's important is to compare it to 12 months earlier. 12 months earlier were up on 12 months, and again, all organic. And I think that's a strong result for the company. Next question. During the COVID lockdown, are there any tailwinds in organic growth? What's the plan to strength of retention and further grow that? So we've definitely seen solid growth and retention. I think I shared some of these metrics actually last quarter. In terms of the parents are coming back more often. They're consuming more content while they're there. And that's definitely continued through the quarter. Again, we haven't made any significant investments in any of those things as yet. So in terms of COVID, I guess, the U.S. is definitely coming out of this period, the vaccination rollout. One of the tailwinds we are seeing, though, is with our local business. So we invested in local and travel last year extensively. Those of you remember, we launched the partnership with Apple. They selected us for providing this wonderful content for Apple guides and maps, based on local content. So -- and that's -- you continued on to this year. But really, it's a great asset of the company and the platform to have lots of great content. So travel is a key industry that we go after. We really doubled down late last year, although not many people were traveling, but really talked to lots of brands and companies about that, and I think it's starting to pay off. So a tailwind of a post-COVID world for us is actually winning some really business we travel and local brand because people got to start traveling. They want to get to other places, one obviously put COVID behind them would agree. There's the whole thing I've seen recently about the whole #YOLO, if you've heard of that? You only live once. And that's a mega trend that's happening in terms of like getting out there and experiencing life. And that's another driver of our business. I fully expect that to continue this year and into next, frankly, because I don't think that's going anywhere anytime soon. Discuss the plan of starting to involve the Pet Parenting. Great question. So Pet Parenting, we covered a little bit of it in the announcement yesterday. And I covered a little bit about it today. But basically, in a nutshell, there's a whole range of new features being added to the platform to accommodate families with pets. As their families of pets, they may or may not have children. So basically, you can be -- well, today, not yet, but it's launching in the next month or so. You'll be able to download the app and on the web as well and being able to set up your pets. A dog, a cat, obviously, all sorts of other information about them. And then they're going to get some relevant content to them, and obviously, the appearance of those pits. And it's going to be linked based on some milestones, too. Initially, we've partnered with Hill's Science, which is an incredible brand in terms of wonderful nutritious food for pets. And hopefully, that will be a long term partnership, although it's just 6 months initially. But that's an area and a feature that we're going to continue to invest in. So you will start to see more in terms of not just appealing to parents with children, but also appealing to parents with pets. And we know there's a big use case, and there's a lot of parents been using the platform to share photos of their dogs and cats, et cetera, with families, but they have to add a child that's where it's been to date. As I say, fairy children like sometimes. So anyway, so that's a feature that's being rolled out and launched next month. And you'll definitely see more features as you go. But there are other features already on the website, go to redtri.com and you'll see a bunch of mini areas around content already being created on pet parenthood. Next question. What do we attribute to doubling the large advertising bid last quarter from 15 to 30? So I would probably be attributed to 3 things. One is, as we've -- last year, as we merged the operations of both businesses, we really trying to really figure out the value property brands and what we could do for those brands and other brands. And we had some wonderful success with brands and wonderful stories to tell to other brands. And sometimes when you're talking to those brands, there's budgets are not available at the time because you sort of too light down the piece because they've often done planning already. So a lot of wonderful work by the ad sales team, a lot about reach, getting the story out there. And I think that was really an important aspect of basically us getting in front of our brands. Those brands reaching out to us and obviously seeking us. Number one. Number two, the audience size, the value I think it's really compelling. And #3 is proof we're delivering incredibly well for these brands. These brands are coming back for more. Other brands are telling other brands. They're seeing the value prop and they're approaching us, and they're seeing the value prop. So really a whole range of reasons that we're fully expecting this to continue to go, and it's very exciting. There are, as I said, compared to last year, this is significantly up. And even in last quarter, it's doubled. So it's really exciting time and fully expect that to continue. Whether it's at that pace we'll see, but fully expect the size of deals, many more deals to continue for that. What are the client retention numbers like? And what are the 2 or 3 main reasons clients leave and don't come back? So I'm going to assume this question is related to brands as opposed to users because of reference clients. So on brand. So we probably have about 60 -- 55%, 60% split of existing and new, so which is really solid. So basically, over half the brands we do work with come back for more. And obviously, it varies, depending on the campaign. Some brands only want to do one, right? Because they've launched a big product. They want to have a big fanfare, and there's no interest in coming back, right? It was never their intention. Other brands want to have a more ongoing experience and dialogue and obviously, see success, work on that success and keep on investing in that for future campaigns. So depending on the brands, it will depend on what they do and how they do it. The main reason why they don't come back is there's no need, and it's kind of obvious for this. One. Number two. That basically perhaps some of their metrics weren't quite achieved for whatever reason. We've got people to their website but their conversion wasn't quite there. Was it pricing? Was it their size? High range of different things. And number three, and this is going to sound interesting and this reason senses to the market. Clients change their mind, right? And they go to a different point. I mean, brands, especially large companies, brand managers change every couple of years. They go into different roles, new people come in, agencies change. You have to reset the agencies and sometimes a pause for 6 months or 12 months and then come be able to see the next year with a new agency. There's definitely changes in the advertising ecosystem that affect brands coming back. So might even be related to you, you hit out of the park in terms of the metrics. The -- basically, they didn't go well as a business, their budget change, their decision-makers change or agency change and there was no need to do anything that year and they may come back in future years. But that's sort of hopefully some color about that as well. Another question is really around pets, but more importantly, how it relates to content, community and some of the user experience, right? So that's an awesome question because, again, we really feel it's not just about pet parents around the simple features of memories. But consuming content at parents, banking with other pet parents, having community as part of that and then be able to connect and share experiences, too. And then beyond that, I know I want to extend the question a little bit, but we have grandparenthood. We fully expect that there's an opportunity around grandparents engaging on a content level on a community level, how do we help grandparents, how do they connect with other grandparents about, playing with grandkids, stuff to buy, all that type of stuff. And we -- don't forget we have over probably 700,000, maybe 800,000 grandparents on the platform beyond family members. So you heard me today, I'm not talking about that yet, but we fully expect subscriptions severe massive driver of growth for that cohort next year. I think we'll get it to it this year, but we'll definitely see opportunities there this year. So definitely see experience of pets, parents, grandparents and other customers be able to leverage the entire platform there as well. And coming up to a final question. So -- and I'll probably wrap up after that. So the final question is how we're servicing the current premium customers? So the current premium families, what's going to happen to them through this journey of this sort of wonderful new subscription product? How it relates to them? So the great thing about launching a strategy around a single subscription product is that if you're a subscriber of that premium experience inside Tinybeans app, you will also get those features across the entire platform. So if you're a premium paying customer, you'll also get premium content and you'll also get access to community as well. So really, it's about, again, a good experience for all those users. So if you're paying today every month, every year, frankly, you're automatically you're going to get these additional features. So that's why we feel in the future as new subscribers come into play and sign up to initially might be content, but they're also going to get memories and community and all those things combined. So we're fully focused on ensuring we're supporting our existing premium customers, actually all our customers. So those premium customers are going to get these newer features that -- and they haven't gotten new features for a bunch of years. So I'm very excited to offer the content as a first cut of the sort of the growth investment road map, so to speak, into the experience with premium paying customers. They're going to get content come as soon as it's ready to launch in their age group. So I fully expect that to roll out in the next handful of months. And again, we think that, that will affect increased retention and decrease churn. Because maybe if your child's 5, 6 years holding long interest in premium, there's a reason to stay on because you're still engaged at a content level and at a community level potential. So we're hopeful that overall retention will increase even more, although we have high retention and churn will decrease. And actually, there's an opportunity to win back, customers we've lost, because maybe they've aged out that we can win them back to come back to the platform because now the premium and the single subscription product offers much more than just memories. It offers content and community too. So with that, that's a wrap. That's all the questions we have, and it looks like all the time we have today as well. So look, thank you again for all your time and support for the company. I really hope that today was a wonderful update in terms of what we've done and more importantly, where we're heading. And lots of exciting stuff to come, and we'll update the market as we see fit. But thanks again. Exciting to get involved. Feel free to reach at any time. We're always available to answer questions, and I look forward to having you on our call next time. So with that, thanks very much, everyone. Have a wonderful night in New York and a great day in Sydney and anywhere you are in Australia, and we'll talk to you soon. Cheers.