Tinybeans Group Limited (TNY) Earnings Call Transcript & Summary

Tinybeans is a leading app and web platform, allowing parents to capture and share content as well as receive recommendations on what to do or buy based on the child's age, location and needs. Tinybeans is launching a whole new parenting experience in calendar Q4 of this year with the goal of making Tinybeans the go-to resource for all things parenting. We are honored to have Eddie Geller, CEO, and also largest shareholder of Tinybeans with us today. As a reminder, if you have any questions during his presentation, feel free to click the Q&A button at the bottom of the Zoom screen, enter your questions there, and we'll answer the questions after his presentation. Eddie, thanks for being here with us.

Thanks so much again, appreciate the opportunity. I'm just going to share screens and jump in, right.

Yes, go ahead.

Awesome. Hello, everyone. My name is Eddie Geller, CEO of Tinybeans, incredibly excited to be here today and present our story and our plans for the future to all of you. I guess, for your background, I'm originally out of Australia. We started Tinybeans in 2012. Then, and I've always built companies, always been entrepreneur and then moved the company. 2014, well, I moved here with my kids and wife to New York about 7 years ago to build out the business here. And now 100% of our revenues are here, all of our staff are here and most of our customers are here, too. So for those of you who don't know much about the company, this should serve as sort of an overview, and those of you that know a little bit about the company, we can obviously dive into more specifics throughout as well. We trade at the moment on the Australian stock Exchange. Listed a few years ago, we're also in the OTCQX. And then a little over a month ago, we announced for the market our intention to move to NASDAQ. So we hope to uplist to NASDAQ in the next probably 3 to 5 months, initially be dual listed, and then we'll take it from there to then have a primary listing into the U.S. afterwards. So let's jump in and through this, provide much more overview of who we are and then more importantly, where we're heading. So firstly, before we jump into, I guess, the company, it's probably best to understand who are the people and who, I guess, you would be bidding on if this is a story that you are interested in. So this leadership team is a first-class team I've recruited over the last, I guess, 15 months or so, and really come from incredible pedigree of companies, experiences and we are all parents who really have signed up to the mission of what we're creating and more importantly, where we're heading. So Allison has come from Amazon, Meridith; Nina has come from Condé Nast and wall Street Journal; Chris from Biocom; Mark and Kyle is from brands like Kickstarter and the Runway, QVC, so incredible brands. All built very large businesses and large products in other walks of life and clearly exciting that they're part of the Tinybeans team, all based in New York. So it's wonderful to get a team together all in the flesh and be able to plan together. And I would say out of the 75-odd people we have across the company, of about 30 in New York, and the rest are scattered across the U.S. with a few in other parts of the world. So that's, I guess, the headline in terms of the team, and I'm happy to answer questions, if there are specific things here you'd like to know more about. So at a glance, Tinybeans is really, at the moment, 2 things for parents. One is this incredibly powerful way which you want to capture your Charles life using our Tinybeans app and only share with the people that matter. So photos and videos milestones every day. And then about 18 months ago, we acquired a parenting website called Red Tricycle, where you can go into Red Tricycle and have a look at content for this weekend of what to do in certain cities across the U.S., have sparks of inspiration of activities, products, et cetera. So today, it's led to, I guess, properties. The next month, excitingly, which I'll talk about this later on, it's all coming together as one. So one website, one app, all under the Tinybeans umbrella. And I won't be talking about these 2 things. It's about one experience for parents to do all these amazing things that I'll talk about shortly. But at a glance, the company has gone incredibly well. At the moment, we run in July to June financial year, given originally Australian. Again, 2022, that's changing the calendar year, and you can see we finished the year just on USD 8 million, double what we did the previous year, and we're just on a great growth curve today. We've got wonderful accolades in terms of app star reviews, wonderful partnerships from Apple, which I'll talk about shortly. But really, the business is going very, very well, and we're just beginning. And I'll talk about some of the customer aspects very shortly, but what's wonderful where we're at is, I think we've been able to build trust with parents, we have at the moment, 4.3 million monthly active users, and that's all a wonderful audience we've acquired organically. We have not spent any money on marketing or paid media, which will change at the back of the platform. But the fact that we have that large audience, given it's all organic, is really a testament to the brand and really the value we deliver parents every day. So in terms of where we're heading in our mission is really -- Tinybeans is where parents go. Today, if you think about how parents go about solving the needs and the opportunities for their kids, they frankly start with probably search or the color if you go to a social group or maybe go to a friend or a colleague or basically a mother's group. There's really no destination. There's no starting point for parents to help me. I'm a dad of 4 boys, 18, 16, 13 and 10, and I still think I need all the help I can get. And there's tons of questions, I would love to have answered. But frankly, Google is a terrible experience, untrustworthy and all the things that recommend mostly, and then lots of other avenues are difficult and provide sometimes more anxiety than the other way around. Tinybeans and I am on a mission to be varied platform where parents start and they basically everything to do with the parenthood is going to be with Tinybeans. So whether it's finding out things to do this weekend, finding a baby sitter, finding a product, finding another parent who can help you in the journey of potty training or getting ready for school, we're going to be that platform. We're not there yet. But definitely, I think over the next couple of years, there's no reason why we can't lead the space, which at the moment is entirely open. I'll talk about the metrics of basically the size in the market shortly. It's entirely open. And no one is doing this. And I think, frankly, we have an incredible opportunity to be that platform, given we've been able to deliver wonderful trusted experiences for over 4 million users without any marketing to date. So in terms of the market opportunity, probably kind of related to this anyway, given we're talking about clearance, but the 72 millennials in the U.S., they start with their devices, go to bed with their devices. They're very, very connected to everything digital. Huge amount spent on digital advertising across the U.S. and around the world, and then the biggest [indiscernible] we mentioned, which I think has the most sense, given where we're heading, is around over $1 trillion is spent on babies and kids every year in the U.S. alone. And just when you pause and think about that, it's huge. And the average, you have lots of stats to suggest that costs about $1 million for the course of 18 years in terms of like cost and ongoing costs to basically bring up children. And would parents spend 0.01% to improve that? Would they sign up for a subscription? Would they buy more things to help them in that journey to feel more confident to win parenting to basically feel like we're doing the best in for their kids. I'd say resounding, yes. And all the parents I have spoken to, it's an absolute, yes. So I think there's just a huge opportunity. And I think we're -- as parents, we're using hundreds of places to do this and very little of it I -- basically you trust. So that's really the opportunity that I'll dive into. And the last one I just want to add is, I put in here really U.S.-based metrics intentionally, but really, there's a huge opportunity globally to launch basically all sorts of services globally. There's nothing up -- around the world that offers it. But definitely, feet on the ground and there's more opportunities in the future, but the U.S. is definitely very lucrative on its own in the next year before we go into other markets. Some highlights of the last 12 months, we did USD 8 million, 4.3 million monthly I just mentioned. The cash burn over the last 12 months has been really respectable of a USD 400,000 a quarter, that's definitely increasing as we're ramping up a very big launch, like Ian mentioned, next quarter, actually next month, we're launching a whole new platform, which I'm excited by, which I'll show some on the screens for in a minute. And the business has gone very well from a growth perspective. At the moment, say 85% of revenue comes in advertising. And the fact that we've delivered just under 100 proposals last financial year with brands, and I'll show you the brands in a minute, campaigns of 100,000 shows, the under potential of the business, given we're just starting. So again, the business is in great shape. Here are some other stats in terms of the business has gone very well. I mean, one important point to note is that we have a 5 million registered members. Their information, who they are, e-mail address, et cetera. So the potential to really convert them to paying subscribers, which I'll talk about shortly, is really quite incredible. So let's dive in a little bit about the business in more detail. So as I said, about 85% of revenue comes from advertising, we work with Tier 1 brands like Lego, Amazon, Apple, Google, and they come to us to help them get their content in front of parents at the right ages and stages. So for example, Lego will partner with us to get DUPLO as their product in front appearance of 18-month old to 5-year olds because we have that information about their -- obviously, their kids and their parents. So we won't ever pass that information on to brands. And we'll then use that content and then add that to the platform and integrate that to the user, so they can see that information. So that targeting is very central to our value of the brands, and that's why we're able to attract big brands, given with a relatively small audience. And then also, we have a relatively small revenue stream around consumer, around 15%. That's come largely from subscriptions, small e-commerce and printing. The subscription piece is the biggest opportunity in the next 12 to 24 months, and then we'll dive in e-commerce later. I'll talk about subscriptions. But again, next month, we're launching a whole new subscription platform, where we're looking to really grow substantially and convert a huge amount of those monthly active users to basically paying subscribers, which I will talk about shortly. So the business at the moment is 85/15. Percentage-wise, you can see it's growing really nicely. Our strategic goal, which I've got a slide on this a little bit later, is actually get that to 50-50. 50% advertising, 50% consumer, and both are going to be accelerating and growing over the next few years. But we really believe that if we're going to be on this mission and really help parents in the journey of Parenthood, for us, it's about creating such a compelling experience that they're willing to pay for, buy more things from us, and the consumer revenue stream will definitely be larger than advertising in the future, but we'll always have a great advertising business. Here are some of the brands that we work with that advertise with us. So they're not channels for user growth. Just to be clear, they're all partners that advertise and basically pay us beyond campaigns of it and are ongoing and growing with us. So -- and just to sort of qualify the campaigns, the platform is really strong in brand awareness. So we do a lot of work around brand lift studies, where basically, brands want to understand, here are our products. We want to make sure that our brand and our product is more pronounced and more, obviously, recalled post the campaign as opposed to pre the campaign. So there's some of the things that we talk to brands about all the time, but it's just really exciting to have these types of brands on our roster, knowing that we're continuing, doing more with them, they're coming back for more. And clearly, we're looking to attract more new brands into the future. And earlier on this week, if you want to have a look at our website and look at our releases, we posted a release of this quarter to give the market the more understanding of what this quarter looks like, and we're about to finish it. And it's a record quarter in the ad business and already have locked in contracts for next quarter that basically also represents a record quarter as well. So really, we're in a great place with our ad business, and we're really selling into 2022. Another partnership that is very successful, albeit early, is Apple. So on the app side, Apple has chosen us to be app of the day a couple of times in the U.S., which is incredible, given these 4 million apps in the world, so incredible to be selected. But also last year, they launched a whole range of features around their Apple guides and maps. So you can go into Apple maps, type in New York or Atlanta or Seattle. And Tinybeans is the only platform that recommends parent-related content inside the Apple app experience, which is incredible, given -- obviously, there's many other companies out there, many other large companies out there, but that it just talks to our high-quality editorial team and content we deliver. That's a partnership that is really growing nicely. It's still early days as Apple continue to invest in their Apple Maps and guide's product. But we see huge excitement and growth here. There's no mandatory aspect in this partnership. It's really a channel for user growth and customers. And given we're launching a whole subscription experience around content and avenue for revenue as it converts to paid subscribers. So definitely an exciting partnership and [indiscernible] grow into the future. Here's basically some of the, I guess, bread crumbs of basically the app that's launching next month, which is very exciting. So today, if you download the app, it's largely all around memories, and we're launching a whole new experience next month, and we're going to iterate on that for the next 3 months and beyond where content will be into it. To the screen in the middle, you'll see evergreen content. So everyone that delete up and opens it up. We'll see content that's evergreen, no matter who you will give you that content or free. If you sign up to a paid subscription though and tell us a little bit about you and your kids, you'll then have this for you experience, and you'll see this experience on the right. And this is really powerful because in this case, you can see there's content for Joni, there's content for Jack, and it's all tailored to your kids. Jack, who is 2 might be interested in dinosaurs and dancing and Sofi who is 4 might be interested in science and soccer. So as you provide this information, every time you come to the app and the site, it's all allocated to you, interest, location, stage, et cetera. So that doesn't exist anywhere in the world. You can't get this anywhere, and so we feel excitingly that based on our research and validation with the market and parents, it's a very valuable piece, especially [indiscernible], they want to get to what they need quickly. And there's all sorts of evolutions we're going to get to that. We built a recommendation engine. We're launching around data science. It's going to be learning about what we recommend, our parents interact with that content. And then that will continue to get better and obviously look to recommend even more things in the future as we layer in e-commerce and other services as the business scales. So it's incredibly exciting time for the business, especially as it relates to launching these services. So subscriptions. So we announced a little while ago, we're launching a subscription service called Beanstalk. It's a significant upgrade from our historical subscription service. Just for context, we've had a subscription service around the memories piece, this last screen on the right-hand side, for a number of years. It's premium-based experience where you can free to download the app and you also have an opportunity to upgrade to premium. And basically, all that's being folded into the single subscription product that you're going to get access to from a free trial experience and convert. And it's folding all these services in. So all the memories functionality, unlimited storage, high resolution, lots of features around memories. We're incorporating this personalization around content, which I just touched on, which, again, is incredibly exciting. And then we're launching a video-first parenting community. So parents of twins can find parents of twins. Dads of 4 boys, it's like me, you can find dads of 4 boys and all that type of stuff and seek advice and feedback and reassurance. And again, that doesn't exist anywhere at the moment. The community part is something we're building out. It will definitely take us a little bit of time to sort of have that as a really valuable piece as to keeping us as to why they sign up. Today, if you think about like the why conversion would happen. The memories piece is the most built out, although we are changing the user experience and the content is then next built out. And then the community is basically a more early-stage development project there, but that's going to accelerate through the rest of this calendar year. $5 a month, $40 a year, and a Tinybeans promise always holds true, where we'll never sell your data and basically will always remain private, no matter what. So this is our subscription product. We launched it to new users only a few months ago, and the early data is incredibly exciting. We're going 23% from download to paid conversion. So just to sort of unpack a little bit, every 100 people to download the app, 23 people are paying. So there's a lot of funnel aspects. They download the app at a register, they then start a free trial and then are obviously paying. So incredibly exciting. It's clearly a small subset of users. So we're not like celebrating just yet. Clearly, we wanted to be much, much larger with the tens of thousands of users and hundreds of thousands of users to sort of get the numbers right. But it's wonderful, at least, we're starting with a high number as opposed to a low number because we've got an experiment and test and validate all these things as we grow. But we're really happy with early results. But really, over the next 60 to 90 days will really be an exciting piece to sort of validate the early stages of this subscription strategy. And one thing I just want to point out, it's a question I often get is there's nothing in here in the value prop that suggests no ads. The feedback from our customers suggest that actually parents want ads. They just want tasteful targeted ads. So there's no value prop here about a subscription where there's no ads, where -- and people may think our ad revenue is going to tank, not at all, our ad revenue is going to grow because we're also upgrading the ad experience, so they're much more woven in and also upgrading the ad product. We're launching video of ads, which we haven't had before and other sort of tightening capabilities. So there's a lot of things that are going on here, but I just want to sort of point out that we see both revenue streams are really being super successful, not one cannibalizing the other. And that's some of the really important work we've done since probably February, March this year. And the people that have been following us, we've been doing a ton of, obviously, research updating the market on this journey, and it all combines for the launch next month, which is just the starting point. Just a quick -- I know we're don't have a ton of time, so I just want to get into Q&A. A quick snapshot of financials. And you can go over this in more detail, everything is public, but I guess a quick high-level message here is that our margins are very high. So over 90% gross margin, the business, if we scale the subscription successfully and the advertising successfully can really spin-off cash for us to reinvest very, very quickly. So the fact that we've gotten to these types of metrics, given the cost base is very, very robust. So for us, we've been continuing to invest in the platform into the future. So this line, I think, is quite relevant just to sort of unpack that a bit more detail. The company today, if we wanted to, would be very profitable. We really generate nice revenue. And it grows itself as with no paid marketing and no marketing at all. We can already obviously be profitable and be very comfortable with that. Not with me, I'm very ambitious, and I think there's incredible huge market opportunity here. So we've been investing a lot of the potential profits, I guess, into the platform for future growth. And that's some of the things I already mentioned, so I'm not going to go through them in detail about the future growth potential of the business. So really in this growth stage of investment, and as the revenue grows, we'll continue to double down and invest in some of the core services to continue the future growth of the business. So a couple of slides just to wrap up, if that's okay, Mike and Ian. This is basically just demonstrating the potential for this 50-50 stream. And I think if you extrapolate 3 to 5 years out, I think most revenue will come from consumers. And I'm excited for next year to launch our whole e-commerce offering, recommending 3 products by -- recommended by other parents like you. This whole paradox of choice, I think, is a massive challenge for consumers, more so parents as well. I think Amazon are getting like [indiscernible] thousand results. I'd rather have 3 recommended by other parents. There are the things we're going to layer in the future, e-commerce and then the big goal, I think, is a marketplace potential. But again, you're very much very focused on the now. And this is really just important sort of share. I know the slide probably has a lot of information, but the key message here to understand is that we're just starting paid media now. So people may ask me what's your cap and LTV and what's your return on cap, et cetera. We'll know that more in the next 4 to 8 weeks. We've just started paid media as a channel, and then we're, obviously, after they're going to be launching PR, influencer marketing, et cetera. So all those core metrics you probably know and appreciate in SaaS-based businesses will begin to get better rate over the next handful of months, and then really, we'll look to scale that into the future, and that's the exciting bit today. So the last thing I just want to leave you with is these are the key bets we're making, enhancing the customer value prop to grow lifetime value, enabling the platform for that scale, channels, users, security, of course. We have a lot of important information on parents and their children and then elevating the brand, so we become the go-to brand. Tinybeans becomes synonymous with parenting, and we become like you have to get a subscription to Tinybeans if you're a parent. When you learn, you're having a baby and a baby registry, you'll get tiny beans subscription being stocked as part of that subscription as part of that registry. So they're all the things we're thinking about in terms of scaling the business. It's just a great time to get involved and follow the company, with a great team, a single brand, and I think we've delivered really nicely, albeit the fact, very little capital and little, I guess, invested growth to really build something pretty substantial. So that's the overarching pitch. Hopefully, you've enjoyed it and happy to answer questions at the moment.

Eddie, thank you for your presentation. We'll start out with the questions we have from the audience. And the initial set of questions is there's a couple of people that have asked about competition. So to start with, can you just kind of describe the competitive landscape? Who are the biggest competitors? And how do they compare in terms of user figures?

Sure. It's a great question. I think if you sort of isolate some of the services we're offering, and there's definitely competitors within. So if you look at the memories piece, there's sort of some niche apps, a handful, most have failed, most have closed because they haven't built a sustainable commercial model. And there are the generics, right, the Googles, the Apples, the Amazons, et cetera. And they're sort of solving the generic solution for those everyday trusted ways in which you want to capture memories. If you think about the content piece, there's thousands of generic content sites around parenting, right? And really, as parents, we trust Google, and then spent 45 minutes checking all these websites out to see what's the most relevant. And that's where the personalization piece, I think, is a powerful moat that I think will be a unique piece. The parenting community doesn't exist. There's no where I can go to a parenting community. Like yes, there's Facebook groups, but nothing like I'm talking about and, frankly, hard to trust, that you can get to in understanding of the content. So there's definitely, I guess, competitors within each certain segment, but the fact that we've built an incredible brand and a value prop to parents, given we spent no money in marketing shows that there is something truly compelling here. And I think bring it all together, presents really a differentiation that, frankly, no one is doing, and no one is thinking. And I think we're creating a whole new category here, bringing all these services together that creates not only unique competitive advantage, but a most that I think can really be -- I can sustain a store for many years to come and scale the business. Because fundamentally, the #1 thing this will start with is trust. And I think if we're able to garner the trust and create utility with a parent, especially in early stage, we can -- we feel -- retain the parent, engage them for a long time to come.

All right. So I think you've somewhat answered this, but I'll throw it out if you want to add some more color here. So as -- there's a question regarding Facebook groups, Whatsapp family groups. And so I think those are kind of the sort of the generic sites that you referenced. And so the question I was wondering how you plan to differentiate your offerings from companies like that, which you probably somewhat answered, but maybe I'll give you a shot at delving further into that?

Sure. Thanks, Mike. So I -- definitely put Whatsapp messages into the same group as some of those other generic tools. And they're really good tools. I mean, I use them personally, they're really good for sharing. They solve the problem of sharing and memory in a real-time capacity to a group of people that you want to share with. But it doesn't solve many of the other problems that we can solve for you in terms of organizing all your kids memories in one space, the ability to capture lots of other milestones around the kid's life. So it's great for sharing, but for organizing, structuring and then be able to tap into all sorts of other recommendations based on that, you can't do with those things. It definitely solves one of them. Like if you had a list of features, the sharing aspect is that. But then again, also with Tinybeans, you can share with your great grandmother, who's 97 with an e-mail address, and she gets an e-mail every day of all the memories you've add up for the day. And she -- it doesn't need an app, does need a phone, a smartphone and doesn't need to get into that complexity. So we're technology agnostic, whether or not you want to use a user who wants to use an app, who's say the aunt or uncle or basically just want to use an e-mail address that we'll definitely solve that problem. And then as far as the Facebook groups are concerned, they're great for very generic use cases. So you can have like Golden Gate moms. And basically, there's like 8,000 moms in the Golden Gate area that basically is part of the script, but if you got a 3-month old or a 17-year-old, you got vastly different needs and wants and desires and problems and opportunities. So location-based group actually doesn't necessarily help at all. You actually want to get into much more like relevant of your parallels of another mom, who's got a 3-month old. And that 3-month old maybe is your second, not your first, that's also different to the situation. So think of us, sort of, I guess, experienced around a much more tailored piece of your life rather than a generic piece of your life, and that's where Tinybeans comes in. It's all about. I want to own parenting, I think we'll own parenting, and you'll still use at other platforms for other generic services, but it won't be your go-to for parenting, and that's really what we're creating.

Okay. So the next question is, do you develop the website in-house? Or do you outsource that?

Absolutely, a great question. It's all in-house. So we have a dedicated team, product engineering, that's all in-house resources, full-time and basically augmented with specialists. But again, all in-house resources. Many years ago in the early stages of the company, we definitely dealt with, I guess, "outsourcing" some of the aspects to other companies, and it failed. Basically, it wasn't a success for many years. We learned that because the product is going to go through such evolution, experimentation, we get feedback from the users, we've captured data. You really need to be in the team talking daily, and we felt that an outside team just wouldn't have that level or didn't have that level of, I guess, not only commitment, but just context to make those decisions every day. So now everyone's in-house. And I think there'll always be the case in the product engineering team. One thing though I will make note of our editorial team is basically highly scalable. So we have a core editorial team, full-time on staff, and we have over 60 contributors all over the U.S. that are freelancers that write content on a local level. So you'll have a mom in Atlanta, who's basically writing content for Atlanta-based parents. You'll have a mom in Seattle talk -- write about content in Seattle. So those people, they're just basically contractors of freelancers for us, not on our, I guess, full-time team, so to speak. And that's a great way we can scale into other markets around the world because we'll engage with local, I guess, experts who write in their local cultural tongue, which I think is also a unique aspect of our value prop.

To what extent is scaling of the platform for a large audience a challenge? Because you're probably kind of a unique kind of website in that regard that there's not. And most websites probably don't have the kind of bandwidth requirements that you might ultimately have?

Yes, absolutely. Also a wonderful question. So we bet early on AWS, Amazon Web Services, back in 2012 when we launched our first app and website. And we've been partnering with them ever since. So first of all, the partnerships are very, very important. So the platform we're using are very important. And then we have dedicated professionals in the team that do that every day. So in terms of scalability, security, accessibility is a critical aspect of our core service behind the scenes. And we're always basically running test and evaluation on all sorts of things, from performance, obviously, testing security to obviously scaling up based on all sorts of things that we have. So the platform is vast, so photos and videos and content and bringing those 2 together with all bunch of machine learning that we're building out. So -- but the wonderful thing is that we get early on a platform that can scale. And now we're sort of big enough now that we've got a dedicated team at AWS, who we check in regularly. They're checking with us regularly and they're always helping us scale and grow the business, which many, many years ago, we didn't. We were one of -- on an online-only and never really spoke to people, but now we have a dedicated team to help us with that scalability from a platform perspective.

So the next question I'm going to read literally. And it says I'm a recent parent and have been inundated with ads on Instagram and have downloaded some apps. Parenthetically, the wonder weeks debt up during pregnancy. Will we start advertising on Instagram and other channels like that?

Yes, absolutely. We literally just started last week. So we hadn't in the past. We just started last week advertising on paid media. I think it's going to be both on Instagram and on Facebook and also on Google platforms, too. And that will be over the next 4 to 8 weeks. And typically, the way paid media works as you go through this early testing stage, testing a lot of messages, creative, different customers you're targeting cohorts to they determine, how much of it in terms of its -- what's working and what's not. So it's 4 to 8-week process where the 4 weeks you get the initial data set, you optimize it for the second 4 weeks, and then you look to really optimize it at scale. But you're absolutely, in short, you're going to start with the advertising of the product over the next 8 weeks. But also, just one thing I'll point out. Today, the advertising is largely focused on the memories piece because those other features are not quite launched yet. But when we launched them, next 4 to 8 weeks and iterate on them, you'll start to see advertising that will be around the other value props, around your tailored content. You want to get an e-mail in your inbox every Friday, what to do this weekend, sign up here, like those types of things. So we're going to evolve the value prop in the advertising messages to see what obviously is compelling and what people obviously engage within respond to. So you'll see the messaging evolve over the next 3 months and beyond, but we're really in a sort of fun, early stage testing phase at present.

Okay. Next question. So a listener asked, do you verify the parent's profile before onboarding them into the community?

It's a great question. So basically, today, there's no, I guess, validation of the parent when they're signing up, right? So the parent signs up, tells us about their kids, and that's basically it. In the community feature, so that's something we launched in April this year in a beta capacity to just really see how people would basically engage in video-first community. And look, the results were really pleasing. We hadn't really built out many, many more features than what we had launched early on. And the guidelines and the intent around it is very important in terms of parents, engaging with other parents, obviously trust in each other, et cetera, because really your profile is public in this community experience, you're going to be saying that you have an alias. You've got -- you're mom of a 2 year old, you're a dad of a 3-year old, and that's going to be public there. So in terms of, I guess, validation, we don't have a validation step, and I don't think we're planning on that, but we do have a moderation aspect. So we really want the community to sort of create a life of its own and really moderate its behavior and ensure that basically everyone is behaving and respecting each other accordingly in terms of like our principles of no judgment, basically openly respond. There's no assessment on anyone else. And look, we'll see. Like any community and any sort of feature like this, I definitely expect it to be evolutions, and we may have to put in place some more things and maybe if it scales crazy fast, we may have to think about the moderation better and maybe incorporate some more steps. But for now, we're looking to really moderate it based on the parenting that are in there. And our data suggests that if you're a Tinybeans parent, you're really a type of parent that basically qualifies you for that type of mindset. So -- but clearly, as we scale, that's going to evolve and change. But yes, we're definitely thinking the moderation path for now as opposed to the validation path for now, but we'll see as the community evolves and grows.

So do you have any thoughts or plans on uplifting in NASDAQ?

Yes, absolutely. So we announced a few months ago, our intent to uplist to NASDAQ. The first step of that was moving auditors to -- we are with RSM and this is a public information. We moved to Grand Thornton, who's basically, what's called, PCAOB compliant. But basically, we need to -- with SEC and NASDAQ to uplist TSO and any 2 years of order accounts in U.S. dollars. So that's a project that's been working on in the last 3 months. It's actually all culminating to finish next week as we wrap up the quarter. And obviously, you released our annual report for FY '21. And then we've also been in the figure of crafting our F-1, which is basically the key document. It's -- basically F-1 is similar to an S-1, but S-1 is a direct listing where you're not public already, but an F-1 is what's called -- it's through a foreign filing issue because we're already listed in Australia to be listed as a foreign company in the U.S. It's an F-1. So we're in the thick of that. And yes, we're very committed to being up listed in the U.S. over the next another 3 to 5 months timing dependent on a range of different things. And one thing I just might point out is that, at the moment, about 15% of our holders are U.S.-based, excluding myself. So a requirement as part of on NASDAQ is that if you're more than 50% owned by U.S. holders, you'll flip the switch and you'll actually become a U.S. primary listed company as opposed to a secondary listed company, and that will probably be in the next 12 months too. So the NASDAQ path is an incredibly important path for us, and that's something we're doing in parallel as we also launch this incredibly exciting platform.

What is your strategy for sort of marketing to get the word out to drive user growth?

Sure. Absolutely, great question. I guess we think about it probably 3 ways. First of all, there's the core marketing, and I mentioned some of the marketing tactics already in terms of the paid media, PR. So you'll see as part of the launch of the platform next month. We'll do a bunch of PR. We'll also do other marketing tactics around influencer marketing. So definitely the marketing activity, and that's going to be ongoing and when just be this one-off hit will be ongoing throughout and into the future. The second part of that growth is partnerships. We've got a range of partnerships in mind. We've already mentioned one of them around Apple. We've got other partnerships we've really begun talking to, to scale the audience and scale the revenue, of course, around subscription. So whether it's basically baby registry or basically maternity awards, there's a whole range of partners. We've been in discussions with the scale of the user base. And the third dimension is referrals. And that's we're really excited by. So the ability for parents to refer other parents. There's a whole bunch of features we're launching, and probably later this year, early next year around referrals, where we're going to gamify the whole referral mechanism through the community, you can invite other parents of the community that you know about, other parents that could benefit through these types of experiences. And again, the referral piece is a big third piece of that user growth because, frankly, every parent is an influencer. Every parent knows another dozen parents, 20 parents who can benefit in parenting. So we don't believe that you need like a one big ambassador or one big sort of A lister to sort of hit out of the path or not, binary. We feel it's a much more inertia evergreen-type approach where we're working with many people. They love the product and they keep telling more people about it. And that's really a key strategy that I think can build great scale.

Well, thank you, Eddie. I appreciate the time this morning.

Thanks so much, again. Appreciate having you. Thanks so much.

Thank you.