Tinybeans Group Limited (TNY) Earnings Call Transcript & Summary

All right. Well, let's get going. I'm sure there'll be some additional people coming in, but let's get started given it's 6:30 Eastern and 8:30 a.m. in Sydney. Well, Hi, everyone. My name is Eddie Geller, CEO and Co-Founder of Tinybeans Group. And with me today, who will be part of the presentation, is Chris Motsay, our CFO, also based in New York. Hoping wherever you are, hope you're all doing well and staying safe. I know it's clearly a tough time for many out there. So appreciate all of you joining us today. Special thank you to all our current shareholders and investors and future shareholders. Appreciate all your support and belief in the future. I'm really excited to be presenting the results today. I know some of these were in market a few months ago, but we thought it would be great to remind everyone of the wonderful results of the past 12 months. And really, we're thrilled with the performance and what's in store for the future. We received quite a few questions in the lead-up to this and we'll certainly address them at the end. But certainly, feel free to submit questions throughout in the Q&A box, and we'll make sure we'll get to them at the end. So let's jump in. So firstly, it's important just to share with everyone who the, I guess, leadership team of Tinybeans is. So over the last 18 months, we brought on board a wonderful team, all based in New York that can really deliver not only what we've created today, but really where the company is heading and really scaling the company into the future. So Chris, obviously, is joining us today as CFO and hoping to have more sessions later on throughout the year and we'll have the rest of the leadership team presenting. But what's wonderful here is that each of these people come from just a wonderful pedigree of great brands, building large businesses and scaling those businesses with B2C particularly. And excited to have them part of the Tinybeans team and scaling our company today and into the future. So today I'll walk through high-level summary, a business update, I'll then hand over to Chris to talk through some of our financial results and then excitingly talk about the future and what's in store. So let's jump in. In terms of the summary, I'm sure you've heard different, I guess, positionings of Tinybeans in terms of a memory app, in terms of potentially a site through Red Tricycle around where you can get wonderful inspiring content. For us, today, it's all about putting, I guess, a stake in the ground and then defining who we are and really more importantly, where the brand is going to the future. And simply put, the brand of Tinybeans is where parents go. And that's really where the brand is going to be launched out there over the next 30 days and more importantly over the next handful of years, wherever you see the brand Tinybeans, it will be all around where parents go and you'll see that come in all the time. So yes, for those of you that know about us, about the memory experience, and yes, we have the website, but as we launch the platform next month and iterate on that over the next 90 days and beyond, you'll start to see some of this take shape and broaden the value prop to be much more around this parenting platform that I've been talking about for a little while and it will be summarized around a very simple statement around Tinybeans where parents go. So in terms of the company at a glance over the last financial year, we've seen these numbers before, and we're really thrilled with the results to hit about USD 8 million in revenue through the FY '21 year. We're really proud of. It's basically double what we did the previous year. And even if you look at the Red Tricycle acquisition, which was really the last quarter financial year, FY '20, Q4 and FY '21, Q4, we've grown 60%, 70% on that. So the business is performing very, very well. We've got a wonderful position in terms of the parenting space, and we're really just beginning. So we've got wonderful growth drivers in terms of the advertising industry, a wonderful connection with brands, and more importantly, our customers and what we do for parents for every day. And I think we're -- for us, it's about building these foundations of what we're looking to do today and really scaling that. So as I said before, and I'm going to talk about this in more detail today about this new website [ map ] platform we’re launching in calendar Q4, starting with October, that will not only be servicing parents, of course, and their families, but also brands through this upgraded advertising experience as well. So just to remind everyone, we're clearly serving an enormous market. There's a huge opportunity here. So 72 million millennials in the US wake up with their phones, go to bed with their phones. And really, for us, it's about connecting with them. There's all sorts of, I guess, technical industries that we are servicing today. More importantly, we'll service into the future, whether it's the advertising industry, which is just booming, of course, at the moment or whether it's just helping parents around recommending products and services to them, over $1 trillion is spent on kids products every year. And there's many other services that we feel parents are compelled to need and offer. But really, for us, it's about, I guess, striving and leading the parenting community. And really, my goal is to be synonymous with parenting. And I think for us as a brand, as a company, there's a huge opportunity to create that and enable that, especially with the foundations we have today. So this market is huge, right for the taking. And clearly, no one today is leading the pack at all when it comes to parenting or parenthood frankly. Some of the highlights, as I said, in the last 12 months, $8 million in revenue, 4.3 million monthly active users, all, again, reminding everyone, that's all been organic. We spend no money on paid acquisition. They all come through word of mouth, organic means, search engine optimization, et cetera. And that's really exciting, but this year, you'll start to see much more intentional design around growing that audience through both product design changes and also marketing investments, whether it's paid media and other marketing tactics. From a financial perspective, the last 12 months has been also very good from a cash management. $1.6 million of cash was burned in the last 12 months alone, about $400,000 a quarter. And just to give you a sense of we started the year not flushed with cash, but as the revenue has grown, our investment in future product has grown, we've managed the cash -- managed the cash very well. So finishing the year at about USD 2.1 million. I'm very, very happy with that performance. And then the other metric that I've sort of shared earlier, but again, just we're really proud of is basically the number of proposals of brands we're working with to basically bid $100,000 proposal in front of. FY '20, we only did 15. So to get to 95, it's just an incredible, incredible achievement. I'm really proud of the team for doing that. That's really a combination of an amazing team out there hunting for business, demonstrating the value of the brand and brands winning and seeing the value of the platform and coming back for more. So really happy with that result. Some other metrics that I thought would be useful to share is that the engagement continues to grow over 400 million memories, again, highly trusted and private on the platform. We've had wonderful growth in social. This is something we don't often speak about. But again, you'll start to see social metrics really part of our future narrative as we look to increase the --, I guess, the penetration with marketing. So really happy with the fact that 235 million engagements were basically done through social means. And I think there's a wonderful opportunity as we scale the business and then be able to tap into those users who are currently on social to be using that platform even more. An [ over ] 5.1 million registered members, again, fully expect that to grow as we look to drive value of parents signing up. So really, at a headline level, we're looking to become the go-to resource for all things parenting that will be the daily ritual for parents everywhere. So today, you may think about as just photos and memories and some content, but really you'll see intentional steps and releases of features that's going to encourage parents to start with Tinybeans. And before you know it, we'll be the go-to resource for all things parenthood. So as far as the business update is concerned, again, you would have seen these results since the end of June. We talked about this at the last earnings call and really thrilled with the results overall. The business has continued to grow across all the different revenue lines, advertising, subscriptions and other consumer revenue streams. But again, we're only just beginning on the consumer side. And frankly, the advertising side, albeit the fact that it grew very, very nicely, that will also continue to grow over the next 12 months and beyond as we're really only beginning to start to see the impact we're having to brands and their campaigns to keep coming back on an ongoing basis. From a Q4 momentum perspective, also great results. So it wasn't just the 12-month cycle that was very successful, we also had wonderful Q4. And again, you've seen these results, but the reason why I thought it'd be worthwhile having them in here is because it's just a wonderful momentum because clearly in the U.S., it's a calendar year momentum. That was our Q2 calendar year. We're now into Q3 calendar year and momentum is really growing. So Q4 is not just a one-off, wonderful result. Definitely expect to see some of these results continue into subsequent quarters and growing because I think our numbers are very small considering the size of the market we're penetrating. So fully expect these numbers to grow very nicely. But the momentum is on our side, and we're seeing that both from a consumer engagement perspective as well as the revenue with brands. Just an incredible slide, and I'm just -- I need to pinch myself when I look at these brands because it wasn't -- it wasn't a long time ago when we didn't have any of these brands on the screen. And it's just so amazing that every year, we seem to be getting more and more Tier 1 brands on our roster. And these brands are incredible. I mean, any company in the world would love to have brands like this on their roster. And not only are these first time ones, but they've come back for more LEGO, was a third year cycle a few months ago that we launched and the other brands are also coming back for more. So it's just exciting that not only have we won these brands as one-off, but they've also come back and increased their spend, buying more from us and looking to understand strategically how we can help them grow with parents and families in subsequent years, so really excited by this. A partnership we launched, I guess, a little under a year ago was with Apple. So Apple selected us Tinybeans, Red Tricycle to be able to integrate parenting content to the Apple Maps experience. And it was just a very early stage late last year feature set, but really through 2021 calendar, it's really grown very nicely. So much so that they're basically connected to us in terms of the top 5 content partners across all their providers of content. And just to give you a sense, they basically work with like the best of the world in terms of New York Times, the Wall Street Journal, et cetera. And the fact that we are exclusive parenting, gives you a sense of how quality the content is, how much engagement they're seeing, and they're really looking to invest and grow that specifically. So this is definitely a slow burner, but a wonderful partnership, and we're seeing definitely engagement grow on a quarter-to-quarter basis. And as Apple continues their investment in Apple Maps and Guides, we're going to be side-by-side leveraging that investment to continue to grow out the audience. And again, think of this as sort of a new channel of user acquisition to be able to see content value here and obviously have parents and family members everywhere engage with that content. So excitingly, our real goal is around parents starting with Tinybeans. So when you think about parenting today and think about how parents behave and where we start, we typically start with generic, i.e., search engines or it could be groups on big social networks. And there through that lens, we will go and find relevant content, products, recommendations, what other parents are doing, et cetera. And really, today, no parent starts with a service or a brand to help them in that journey of parenthood. And this is where Tinybeans comes in. Our goal is to create the amazing most incredible experience for parents where they're starting with Tinybeans. Let's start with Tinybeans, for their first photo. Let's start with Tinybeans, about what to do this weekend. Let's start with Tinybeans about [ creating ] with other parents that may have also 2 kids in the Atlanta area, et cetera, et cetera. So these screens you are seeing in front of you is basically, I guess, the screens that you'll see in the app in the next couple of months. So these are sort of, I guess, pre-cursor of our designs that we've been working on for extended number of months. We've done a lot of testing with consumers, and they're really excited by what this is going to deliver them. So really think of Tinybeans as not only what you know about today, but it will be where place -- where parents go to learn, to be inspired and really to connect and shop into the future. And I've mentioned the e-commerce in the future, and you'll start to see this platform really unravel some of the features we're excited about e-commerce. Our average engagement time, 3 minutes, 20 seconds is the historical measurement. But the reason why we thought we will share that is because that's already incredibly high, and we feel confident and comfortable that, that's going to grow off the back of launching these features over the next couple of months, but then more importantly, as we invest and iterate those features into the future. What's exciting about these also is that they've just come through a lot of research we've been doing, not only with existing users, but also non-users that never heard Tinybeans. So it's really been a huge amount of work. So when you think about, okay, what is the growth investments we've been doing in the past? Where has that gone? Here are some of the things and some of the areas and some of the outputs of that. Our subscription strategy. So a few weeks ago, we launched a subscription strategy. We post an announcement to the market around our subscription product, which we've labeled Beanstalk. And really excited by the subscription strategy because it's really the foundation of what we believe recurring revenues and subscription services will be for many years to come. So as I've shared, I guess, many months earlier around sort of 3 pillars of that, around memories, content and community. And that's really what all those services come together to be the Beanstalk subscription. What you'll see in the next quarter, these services come to life. So as we continue to build them out, make them available, integrate them for our parents and their families, you'll start to see iterations and updates in the future. So expect to see a bunch of features around memories, clearly personalized content around the content platform and parents, so just to sort of unpack that a bit more detail because not a lot of people know about that, but I'm a parent with a 3-year-old and a 5-year-old in New York. When I go to the site with a subscription, I'll get different content to a mom with a 2 and 6-year-old in Atlanta, for example. And that's what I mean by a tailored experience. So if I'm not a paying customer, I won't get that information. But if I'm a paying customer, I'll get that tailored. And then you'll also get access to an exclusive parenting community that you'll be able to find other parents like-minded, has similar challenges and opportunities where you want to connect with in a much more highly trusted way. It's $5 a month, $40 a year, a single subscription service. And again, always as part of our Tinybeans promise, we'll never sell your data, pass on your data or share it with any third-party to be able to have your data external. That privacy and that personalization and trust will always be at the center of everything we do. So think of these services as the starting points over the next 3 months, we're going to be launching. We'll clearly iterate on them over -- forever, frankly, but definitely expect to see other subscription services added to this in years to come and that's why it's important to have a single subscription product that underpins the services as we scale the company. Excitingly, we've had some really amazing early, early results. So basically, we launched Beanstalk for a handful of new users over the last month or so. We've started to get some of that data from a download to free trial to paid conversion. And so far, we're seeing 23%. Now, and the data is small, but frankly, they're really, really exciting, yes. Other apps, other platforms, we've seen definitely single digits to convert. I'm not saying this won't get to that, but we'll see. And clearly, as we scale and get hundreds of thousands of millions of paying subscribers, this number will clearly change. But given it's very early days, we thought we'd share with the market some of the early signs we're seeing, which is really, really pleasing. So with that, I'm going to hand over to Chris to talk about some of the financial highlights. Chris?

Great. Thanks so much, Eddie. So it's a pleasure to be here and to be with you all both this evening and this morning. So on Slide 18, I just wanted to walk you through some of our key metrics. These are all related to ad sales and this is for the full fiscal year 2021. What you're seeing really is a combination of us bringing in a lot more brands into the door, which is a testament to how successful our ad sales team has been and you're seeing brands come in with larger deals and more brands come in. And basically, a couple of major reasons for the result of this is that brands are seeing the value of doing business with Tinybeans. You're seeing a healthy renewal rate in the number of brands that are coming back and renewing with us year-over-year. You're also seeing us using and us really working with brands as it relates to our audience and who they are. So we can really generate some very customized, very specific custom ad solutions for our clients based on the data that we have around our users, while in the meantime, keeping it private and not monetizing it. And lastly, you're also seeing just audience and user growth year-over-year as well. And as our audience and user base grows, the brands will renew at higher rates. And what you're seeing basically is not only a number of brands increase year-over-year and number of deals in terms of volume, but you're also seeing deal size grow year-over-year and that's evidenced by the average national deal size and also the 60-day pipeline at the end of the year that we generated as well. So really, in summary, we were really pleased with the growth year-over-year in ad sales on a number of fronts, particularly in the fourth quarter when we delivered organic growth of 67% year-over-year, which was evidenced by the great work that the ad sales team is doing and the beginning of what we see as a long runway of growth for this area of the business. So the next slide, this is a P&L summary. So this is based on the preliminary Appendix 4E that we released on August 31, a very high level P&L. So the revenue we've already spoken about and a little bit of this we've covered on the earnings call back in July. Revenue, a combination of organic ad growth and also what we consider to be an acquisition that we're really happy with Red Tricycle driving ad inventory and capability as well. Something that we'll continue to look at and report out to the investment community for us is gross margin percentage and that's very healthy right now, and that's primarily because the business is largely ad-based, where our cost of goods sold is the direct cost related to ad deals. And so that right now is measured above 90% and that's something that we'll continue to monitor as we continue to grow the subscription in the consumer side of the business. Operating expenses grew not nearly as much as ad sales. Fiscal '20 does include a $1.6 million goodwill charge that we took that as noncash-related because of the Red Tricycle acquisition. That's something that we're working through as part of our audit with Grant Thornton. If you exclude that from 2020, operating expenses grew 63% year-over-year compared to revenue growing 102%. The operating expenses grew to a combination of investments in resources and comp headcount that we brought on from the Red Tricycle acquisition and then we have variable expenses that are very specifically tied to user growth, the biggest one being hosting costs related to technology and engineering. Other income, that line is really of a nonoperational nature. In fiscal '20, it was an R&D credit for us related to our research and development expenses and spend. And in fiscal '21, it was the forgiveness of the PPP loan. And so when you go down, this is a very strict definition of reported EBITDA at the bottom of this slide. We will, in the next earnings calls, be giving you a definition of adjusted EBITDA. That would be excluding more noncash items, and it's very much we're tied to cash flow. But we're pleased with where we are from an EBITDA standpoint as we close-out fiscal '21 compared to '20, and we're looking forward to seeing continued margin improvement as we manage through revenue growth versus investments. So this slide is one that if you participated in our earnings calls, you're used to seeing. This is a little bit more of an operational view of EBITDA. And we wanted to highlight some of the things that we have been investing in. What this slide really is meant to illustrate is that if you look at the bottom chart, the growth investments have been increasing for the business quarter-over-quarter sequentially, not even regarding seasonality, and that's really speaking to us as a business, continuing to invest in the long term. If you exclude the growth investments and take a more operational or core definition of EBITDA, you see that for the last 4 quarters, the business has effectively been breakeven to profitable. And so what this is meant to illustrate for us is that profitability really is variable and it's a controlled item in the company. But for us, we're continually making investments for long-term growth, and that's something that we anticipate doing at least in the short term for the foreseeable future. And then lastly, this is a slide that we did cover on the earnings call. But as cash is important, we just wanted to reiterate what the full year view was for us. So what you're seeing is the cash impact of those growth investments that was presented on the aforementioned slide and we had a burn rate of about $400,000 per quarter. We are continually looking at our cash flow and monitoring our cash position. We had a lot of growth investments in the year. That includes both an allocation of internal resources as to what we look for and spend our time on from a growth perspective and also external spend. And so again, without those growth investments, you have a relatively stable core business. It's worth noting that our working capital, while we have seasonality related to ad sales quarter-over-quarter sequentially, our working capital and our cash flow is relatively predictable. We collect consistently from our ad clients. As we grow the consumer side of the business, working capital will become even more stable and predictable. And so this is something that we monitor, and we'll present out on with every reporting period. And from a burn rate perspective, we're happy with how we finished the year, managing working capital quite well. And with that, Eddie, I'll turn it back over to you.

Awesome. Thanks, Chris. So just moving into, I guess, our last and really somewhat really exciting, I guess, aspect and this sort of guess -- the growth and transformation of what we are looking to expect and focus on over the next 12 months and beyond. So I showed this slide before, and I just want to keep on reminding everyone about our strategic imperative to not only scale our advertising business, but also really accelerate the growth of our consumer revenue business, so much so that we're hopeful and confident and ambitiously enough focused on delivering both being a 50-50 split in revenue in the next 2 or 3 years. So we're going to continue to double down in terms of the advertising product and have that much more compelling for brands and scaling that and really looking to scale out the revenues of consumers as well, starting with subscriptions and then moving into e-commerce and others. But it's a really important point to continue to remind everyone, but this is where we're heading to have multiple revenue streams, sustainable and recurring and scale it into the future. So one of the areas that we often get asked about that I think it's important to share as we launch this new platform is about how we're looking to scale our audiences and subscribers. We often get asked about, well, how do you get to your audience, how you're looking to scale users, what's your CAC and LTV and all those things. And I think it's important just to understand our very intentional way of approaching it. Because I've been sort of, I guess, a lot of people have been saying to me over the last probably 2 years, you should [ spend ] more money on acquisition, get more used in the funnel and really scale it through all sorts of methods. For us, it's been about intentionally not doing that because I just didn't think the return would be there, but I think we're just about that point where we'll begin. So for the expect, over the next 30 days to have our platform launched, as I said, October, November, we'll have 3 different types of cohorts. If you think about anonymous users coming to the website, you'll be able to see users that are coming through and sign up for a trial or a registered user to be able to just explore things and then we'll move into a paid subscription service as well. So they're sort of the 3 different cohorts of customers. We're looking to fold in Red Tricycle and Tinybeans together under a single Tinybeans brand. So as we look to launch this, where we're heading is that we'll begin to invest in paid growth channels. The tactics around paid media and other marketing tactics to look to grow the audience and look to obviously optimize the customer acquisition cost, the return on customer acquisition costs, the LTV, et cetera. So fully expect that to be relevant in the next 3 months and really probably beyond. But it's going to start in the next few months to begin to really drive that to a whole bunch of new audiences to see the value of our subscription service start a free trial and then move to paid. And then expanding on that, we'll look to have other marketing channels, PR, referrals and other marketing tactics through partnerships, et cetera and then continue to grow those 3 different cohorts because as we continue to grow at the top of the funnel, we'll continue to obviously iterate conversion at different stages of that, whether it's signing up to a registered user account or basically signing up to a free trial and paid. So fully expect this to be, I guess, unpacked over the next 12 months. We've got ambitious plans to really scale our subscribers and paid subscribers. And I've already talked to the market a little bit about that. But I guess the 4.3 million users will definitely look to optimize as many of them as possible to look to try and engage them on a free trial and paid experience, and we'll iterate on that to see what the conversions are going to be like into the future. But we're really excited and optimistic about how we can move our 25,000 paying subscribers and really have a multiplier effect of that growth over the next 12 months and beyond. So just think about sort of the 3 strategic pillars over the next 12 months. I mean, it's really important to understand like where we're, I guess, making the bets and where we're looking to lay the foundation into subsequent years. So let’s just unpack each of those. First and foremost, we're going to continue to enhance the customer value prop, which I've talked about a little bit around this whole experience for parenthood, defining and value for the parents to start with Tinybeans. And then clearly, as a consequence of that, drive lifetime value. So whether it's content, whether it's product recommendations, whether it is accessing community members or specialist editors, there is no shortage of things we intend on offering to our parents and family members, but really Beanstalk is going to be at the center of that around a subscription experience, and we'll look to drive the customer revenue as a consequence of that into multiple years, I mean, really, we see lots and lots of opportunities to add revenue products to our experience, but clearly, it needs to start with a core value prop that parents are willing to pay for, rely on and keep coming back to use. And then clearly, we'll add more products to it. So some of the metrics we'll look to measure internally, some of which we will share externally, customer acquisition costs, ARPU, of course, recurring revenues, lifetime values, all the metrics, I guess, a lot of you probably appreciate, but we'll begin to look to offer these, and we'll obviously measure them internally and then look to offer them externally. But really, at the center, it's about ensuring customer value, ensuring the parents love it, use us, rely upon us, start with Tinybeans. So the whole notion of am I going to renew isn't even a question. It's really about them going, I'm getting so much value. I'm going to keep telling everyone about it. And that's really our strategy. As you think about number two, it's about how do we enable the platform supporting it and then how do we scale, right? So clearly, we need to support those users. We need to make sure that they're loving it that they feel that they trust us from a platform perspective, performance perspective, including security perspective. We have to be secure. I often get asked the question about how we think about that, how scalable we are, how comfortable we are about that and that's a constant aspect of investment. We're always thinking about those things. And then how do we look to scale the platform, whether it's through partnerships, whether it's through referrals, there is a whole range of tactics we're going to apply, including marketing, of course. So really taking the platform, launching it, of course, and then obviously scaling it beyond that, both from an audience and obviously, technology standpoint, too. Number three, it's about elevating the brand. Our goal is to create a brand of the last generation that really is synonymous with parenthood. So we have to create a single brand that parents love and adore and really trust. So that single brand is going to be important. We're folding in the Red Tricycle brand into Tinybeans and we want to be this go-to destination for parents from a consumer side and clearly also for brands. So why would brands come to us, what value do they generate, how they're going to get return on their investment and whether or not that's about optimizing experience as well as an upgraded ad product like video or targeting, that's all part of our platform. So these are the sort of the areas we're investing in and doubling down on. And again, some metrics are focused on around revenue, of course, every deal size, core book revenue, again, some of the metrics we've spoken about before. So really, it's an important part of this stage of the company to take what we've, I guess, delivered to-date and more importantly, really ensure that everyone is clear as to where we're making the bets into the future, but not just about for this 12 months, but really about the stepping stone or platform beyond that. To sort of wrap-up and sort of summarize where we're at really at a phenomenal stage of the company. We're going through this transformation and really our goal is to be synonymous with parenting, that frankly, today, no one is. We've got our goal around a single brand, I've just mentioned this with high trust and loyalty. We've got a phenomenal team. We're about 60, 65 people now. We've got about -- I think about 10 open heads at the moment. We're looking to continue to grow in across all parts of the business and really continue to doubling down and create products that people love and grow. And there's no shortage of ideas, but it's about, again, intentionally designing that to make sure the parents are seeing value from that. We have a wonderful audience to-date that we're looking to leverage and grow off the back of the 4.3 million monthly active users, that potentially, some of them only use some of the product and some of the features, but we're looking to expand that, of course, to use many others. And then also multiple revenue streams. Clearly, today, it's 85% advertising, 15% consumer, but really, our goal is to intentionally get that to 50%-50% and beyond. And I think if we're able to do that in the next 2, 3 years, this is going to be a very large business very quickly because of all the hard work that's taken us to get to this point and leverage this. And as we deliver this, we'll be synonymous with parenthood and parents will start with us and there will be no shortage of companies approaching us to want to add their products and services to it for us to continue to scale and deliver value to our parents. So with that, I'm going to wrap-up and then move into questions. So we've got a whole list of questions we've already received. I'm going to jump into those. And then through that, please feel free to add any more to this document. So just bear with me for a second. I'm just going to open up my document and then jump in.

I'm just going to move into here. So question one. With the rollout of the paid subscription model, will it make it easy and maybe give them a bit of a nudge for family members to be involved and family members to pay for the service. So typically, in the past, parents have paid for the service, the question is, will family members also have the ability to pay. So basically, a couple of points on that. Firstly, we're changing the subscription strategy to be less about the family subscription and more about the individual subscription. So historically, premium was about the family being upgraded, so the journal being upgraded. Here, as part of Beanstalk, the subscription will be part of a single person's account, so the parent can upgrade their subscription to a paid experience, the grandparent can upgrade to a paid experience, too. So clearly, all the family members you invite can still access the photos and see them, but you need basically a single person to be able to update and upgrade the experience and then they can see all the other features as well. So that's a key point because historically, our premium strategy will be limited to amount of families on the platform, whereas this changes it completely, and every single user is now a candidate for a Beanstalk subscription. Clearly, a grandparent could unsubscribe to access other grandparent communities, other content for grandparents, and they can add photos to a journal if they're allowed, of course. And before we just couldn't do that. So that's a really important point to note that subscription strategy is changing beyond just the individual to also anyone will be able to upgrade to Beanstalk subscription and all the things that you can expect in terms of sharing and all those facets you've used Tinybeans for in terms of memories will all still be there, but now they've got access to many other features as well. When do you see the company reaching profit and dividend status? So really early on in our growth strategy with a huge market opportunity, as we build the foundation that we're looking to scale those foundations with higher ROI and [ really ] investments into the future. So really for us, there's no short-term goal to drive profitability and dividends. There's a huge upside in this market we're creating and really feel confident that all the returns we're generating are going to reinvest that back and to build a business that we hope will be worth billions into the future. So really, we have no new short term or any plans, frankly, to move into a stage where it's profitable and moving into dividends. I saw in the Beanstalk announcement recently about the company expecting a dip in MAU, but also expecting ad revenues to be more or less unaffected. Can you please provide some color? If this would be the case without starting to rollout on paid subscriber accounts will family members also get ads as part of the experience? So first, I just want to say is that there's no value prop that we're promising around no ads as part of the subscription. So not dissimilar to many other subscription-based services, whether it's New York Times or Wall Street Journal, you'll have a paid subscription, and you can also have ads through it. They're far more tailored, they are far more targeted, but you'll still see ads through the experience and that's the whole goal here. It's about having an incredible subscription experience that parents and family members love and advertising being part of it and woven in. It's not about basically ads just being thrown into it for the sake of it. So that's number one in terms of, I guess, the whole intentional design of the experience to be advertising woven-in. The other thing is that we're upgrading the advertising product. We're launching video for advertisers. We're launching the ability to target much -- and better with what's called a data management platform. So whole ad product is being upgraded, so brands will see value of that and through that will generate more revenue, more pricing per CPM and more targeting capabilities so brands will get more value in product. So think about basically the product of the advertising being a much higher-grade product than what we've had before, so it will be the fact that maybe some users in the short-term dip, there's definitely a whole opportunity to really scale it to the future. And the last point on it is that with a single subscription product that we can then focus around a CAC and LTV and look to have referrals around, we can scale that. It's very hard to do paid acquisition on a freemium product. You're buying a user, they're a free user and then hoping to convert in the future. It's just not -- there's no unit economics around that. It's really difficult to do, and you won't get a return on investment that way. With the whole notion of a targeted audience that you can acquire through a paid means and then they convert to a paying subscriber, you can work on CAC and LTV and optimize the value prop there. So the whole notion of building a scalable subscription and consumer revenue stream has to be based on a core single subscription product. The freemium product just does not work in a scale perspective. And trust us, we've been at it for many years. We've tried, and it has not been something we've been very successful at, and it's very hard to build true, true freemium based products without massive scale. And rather than having to rely on massive scale, I think a compelling product that parents really rely on and pay for is much more valuable to the consumer. And really, more importantly, talks to our mission of helping parents who raise their kids. Do you think cash burn will change much this quarter and in the following quarters? Actually, Chris, do you want to take this one?

Yes, absolutely. So from a cash perspective, as I said when we presented the cash slide just now, we're constantly evaluating our cash position and our capital needs. We are seeing increased investment in the product and in our future strategic initiatives. We showed that on the EBITDA slide. Our growth investments, both internal and external have increased sequentially over the last 4 quarters. But that said, we're actually also seeing revenue growth as well that really is supporting some of those investment needs. So from a cash burn perspective, we feel like we're in a sustainable place. But having said that, the Board and management are always evaluating existing opportunities to best serve the company and also to best serve the investments that we're looking to make to grow in the long-term. So it's something that we're -- truthfully, we're always looking at.

Thanks, Chris. Regarding the NASDAQ listing, what are you thinking about the time frame? So as part of the uplist is a whole bunch of compliant related steps we're making, including the audit that we spoke about earlier. So hoping to do the uplist in the next 6 months or so, 9 months, 12 months, something like that, clearly, with the behest of, I guess, lots of the external bodies out there, but we're definitely very focused on doing it at the right time once approvals are all in place. Will the free subscription remain or is that disappearing after the free trial period and is there a breakdown of features? So if you're an existing free member, you'll have a chance to try the product with a free trial. If you choose after the free trial to move to pay, you'll obviously get all the wonderful features and there's no problem. If after the free trial experience you choose not to upgrade, and you've been historically free user, you'll still be able to access your memories, but you won't be able to add anything new. So we're really supporting the existing families that have used the product to-date, and they continue to access their memories, I guess, but they won't be able to add anything new and use some of the -- obviously, all the other features that we have in terms of Beanstalk without going through a paid subscription. So the other thing also as part of the free experience is that we're going to be offering a content experience. Just like when you go to the website today, i.e., Red Tricycle, you have lots of free content. In the app, you'll have free content as well. But again, it's going to be generic. In order to get the personalized content, you'll have to sign up to a paying subscription. So we're definitely, over the next 3 months, I guess, looking to align the historical different customer bases from free, premium, free trial, et cetera, into a single Beanstalk subscription. So you'll definitely see some of that evolve over the next 3 months, but really our goal by end of the year is that everyone will be into a Beanstalk subscription, see all the wonderful features that we offer and then -- and get a whole bunch more into the future, which is why the whole notion of a single subscription product is very, very important. Having said that, we definitely acknowledge the need to support the users that have been on the platform for several years. And if they choose not to upgrade, that's okay, they'll be able to access their memories, but not be able to add anything new. What's the anticipated customer retention rate under the new subscription model? I guess given it's all fairly new, there's no numbers in terms of, I guess, numbers that we're sharing with the market in terms of expectation of conversion. It's a new product, clearly, with an audience that is somewhat different. You have passive users on the Red Tricycle side that go in and look the content, you've got active users that are registered on the Tinybeans memory side. And clearly, that's all folding in next month. We have different user types. So rather than have a percentage goal, we need to really work out how those different users engage on this subscription over the next 3 months and beyond. So in terms of conversion, we clearly have our ambitions and clearly have some goals out there. The metric of 23% is an amazing result, but it's on basically very small numbers. So I don't want anyone to sort of expect that moving forward, but we shall see, of course. But we don't have any sort of, I guess, goals that we've shared to the market in terms of anticipated conversion because there's so much evolution to the next 3 months to sort of convert to here, but early signs are really, really pleasing. Has any consideration happened around delisting of the ASX completely and doing a sole uplist to NASDAQ and the current shareholders have the option to have their shares transferred? So as part of the uplisting plans and part of the consideration earlier on this year, we looked at many, many different options. So basically, based on the profile of the company, where we're heading, the need to support existing shareholders and then based on the company's growth, we felt it much more compelling to have a dual listing strategy. So we will remain on the ASX. We're looking to add a listing on NASDAQ and serve, obviously, not only Australian investors on ASX, but also serve US investors on NASDAQ. We'll have a dual listed experience. And then as part of that, we're implementing an ADR, which will allow investors to basically swap shares in the US, in Australia. If you bought shares in Australia, you can have them in the US and vice versa. So we're definitely -- the intent is to have a dual listing strategy. What happens after that? We'll obviously wait and see. The Board will evaluate all the options in front of us once that's successfully launched. But for now, there's no plan to delist up the ASX, looking to support our Australian investors there, but look to also support and enable our US investors here with the NASDAQ uplist. Has there been any thought to a share split to increase liquidity on the ASX and, I guess, deal with some of the wild swings in the share price? So there's no share split being considered. Although given the plans on the uplist to NASDAQ, clearly, the issue of shares on NASDAQ will be priced differently to in Australia, but there's no plans to do any sort of split in Australia at all at the moment. There seems to be a lot of fluctuation in the stock price in recent months despite good results, any speculation of what's driving the price? Well, look, I've never been one to speculate how the prices move. But in general, it's moving very low liquidity and obviously, low share count. So I'm hopeful as we continue to deliver outstanding results, deliver on our strategy, the share price will move more predictably and in the right direction, and that's the way, I guess we think about it. How about high-profile influencers? Are there any high-profile influencers we're exploring at the moment to rapidly build up subscriber numbers? We agree that working with influencers is definitely a smart idea. We feel for us, it's part of the journey and evolution of our marketing plan. We definitely look to increase the focus around all marketing tactics, including influencers and ambassadors and celebrities. It's not something we're going to do in the immediate term because as I said, we want to launch the platform and get the brand out there. But once we do that, come 2022, there's no reason why we can't evaluate influencers strategies then and other celebrities as well. All right. These are some questions I have received live. So Tinybeans is a US-centric business with an Australia register, what progress we've made listing in the US, particularly given the small size and the costs involved? So I guess, in terms of progress, we're wrapping up our audit. To be able to submit to US uplist, you need to have 2 years of audited accounts. We engaged Grant Thornton. We announced it to the market a few months ago, and we're in the thick of that audit at the moment. So it's FY '20, FY '21. As you saw in the 4E, they're all in US dollars now. We shared FY '21 and FY '20 there, and they are all being finalized as part of the audit approvals to be able to be included in the annual report and signed off. So once that it's in your annual report and signed off, the next step will then be able to create what's called an F-1, craft that and then submit that to SEC and follow the process. So again, it's very much intentional steps to get there. And in terms of the costs are concerned, they're very manageable. We budgeted them earlier on this year with many other companies who have gone down this path and feel comfortable that we can do it based on where the company is at. And a final question I have besides some wonderful complimentary comments. Thank you. At face value, net cash and payables normalized appears to be circa $2 million. Is this a bit tight? So just like Chris mentioned earlier, a lot of the ways in which advertising has done is very predictable in terms of when we're working with a campaign and a partner when we're actually going to get cash on that. So we are pretty comfortable at the moment based on, I guess, the last 12 months of cash coming in. But as we said, we're also always evaluating options as we look to scale the company, look to deliver on our ambitious goals. We're always going to be evaluating the capital needs of where the company is at. But for now, and as of the end of June, the Board is comfortable with where things are at. All right. Well, with that, that wraps-up all the questions we were sent. So just to summarize, it's just a wonderful time for the company. We're in a huge growth phase. And really, I think that now is a great time to get involved and get more involved if you're not already. So thank you so much for listening. Thank you so much for reaching out and supporting the company moving forward. Please do contact us if you do want to dig into any of these more details, and we'll be updating the market into the future. So with that, thanks again. Have a wonderful night in the US and a wonderful day in Australia, stay well, and we'll catch up with everyone soon. Cheers.