Tinybeans Group Limited (TNY) Earnings Call Transcript & Summary

Okay. Looks like we're good to go. Well, thank you, and welcome to the Tinybeans Group 2026 Financial Year Results Webinar. My name is Wilamina Russo. I'm from the Jane Morgan Management team. Now I don't want to steal any thunder, so all I'm going to say is that Tinybeans has had a positive financial year. This morning, we are joined by the now permanent CEO, Tracy Cho, who is based in New York; and Executive Director and CFO, Rebecca White, based in Sydney. Together, they will walk us through the highlights for the financial year just ended and give us a taste of the priorities for the year to come. There will be an opportunity for questions and answers at the end. So please stick around for that and use the Q&A function on your webinar registration. With that, I will hand over to Tracy.

Thanks, Willy, and welcome, everyone. Thank you for joining us today. Today's presentation covers our performance for the 12 months to June 30, 2026. Then I'll take you through the financial year and where we're heading to in FY '27. And Rebecca will cover the numbers in detail. Then we'll open it for questions. Before I start, thank you to our shareholders for your continued support. I'll take the disclaimer on this slide as read. Just to note that all dollar figures are in USD unless stated otherwise. A quick reminder of who Tinybeans are for anyone new to the register. We are a portfolio of privacy-first memory platforms that families used to hold on to the moments that matter, now and for generations to come. Our vision is clear. We want to make preserving life's most meaningful moments, simpler, more secure and more enduring. Underpinning all of it is operating a trusted private secure space. That's our core differentiator from mainstream social media, and it's a distinction that matters more every year to our users. More on that later in the presentation. We now operate 2 brands. Tinybeans is the family memory keeping app. The home for your remember whens. The app where parents and their closest people build and return to their family story together. Qeepsake, which we acquired this year, takes a different but adjacent approach. It prompts parents by text message and turns their answers into a written journal, a different entry point, but the same core job, helping busy parents to keep a hold of the little moments. Two brands, one thesis. And as you'll see in the numbers, this combination has been central to our FY '26 growth story. This slide is the whole story on one page. So I'll put out 3 areas that are core to the investment thesis. First, FY '26 was our first EBITDA positive financial year. We achieved a $427,000 adjusted EBITDA profit after a loss of $1.44 million the year before. This represents a real turnaround for the business. Second, around 3/4 of our revenue is now recurring subscription revenue, which grew 45% year-on-year. Importantly, Tinybeans+ also saw a subscriber retention rate of 96%, reflecting our deeply engaged and long-tenured audience of parents. Third, the audience asset. We have more than 1 million opted-in contactable users and over 500 million memory stored. This represents a real monetization opportunity for the upcoming financial year. Rebecca will take you through the numbers in more detail in a moment. 4 things defined FY '26 for Tinybeans. We acquired Qeepsake, which lifted subscriber numbers by around 80% on day 1. That's a step change in scale that we could not have achieved organically in the same time frame. We launched our in-app photo store on iOS, and e-commerce revenue went from a rounding error to $0.75 million. We delivered our first adjusted EBITDA profit on the back of the cost out work done in FY '25 and the operating synergies from the acquisition. Lastly, I stepped into the CEO role to lead this next phase. I'm so excited to see what we can achieve off the back of a pivotal year. With that, I'll hand it over to Becca to take you through the numbers in more detail.

Thanks, Tracy. So total revenue for the year came in at $6.49 million, which was up 35% on FY '25. Subscription revenue, which is our core recurring revenue engine, was $4.82 million, up 45% year-on-year. E-commerce revenue grew from a small base to $767,000, a 646% year-on-year increase. This validates our thesis that our audience will buy physical products in addition to their subscriptions. Adjusted EBITDA was $427,000 against a loss of $1.44 million last year, a swing of $1.87 million. We closed the year with $1.64 million in cash and no debt. The quarterly view here tells you more than the annual one. On the left, we have revenue by quarter. We stepped up from roughly $1.2 million a quarter to $1.9 million a quarter up 57% year-on-year. And on the right, we have adjusted EBITDA, 2 consecutive positive quarters to close out the year. I want to be upfront about Q4. Adjusted EBITDA was $664,000 and that includes the accrual for the R&D tax incentive refund for both FY '25 and FY '26. Excluding it, the quarter was still a profit of 73,000. So the adjusted underlying number is modestly positive, but not dramatically so. The point is not the size of Q4, however, it's that we've crossed over from a loss to a profit. On unit economics, we're acquiring Tinybeans customers at around $35 against annual revenue per user or ARPU of $75. Qeepsake is $43 against $67. Both platforms paid back inside a year against an average subscriber tenure of around 6 years. That's the math that makes the growth spend worth making. I'll hand back to Tracy now to take you through the rest of the presentation.

Thanks, Becca. So stepping back to the bigger picture, what does this platform look like today? And where can it grow? Today, at a group level, we have around 93,000 paid subscribers, approximately 0.8 million monthly active users and a database of more than 1.2 million existing or potential customers. active in the past year. Retention is a real strength here, 96% annual retention on Tinybeans, 76% on Qeepsake, with an average active subscriber tenure of around 6 years across the group. Over 500 million memories are stored, which is both a trust signal and a genuine data asset. On the right-hand side, you can see how we think about the customer journey. Today, we're core in pregnancy and new parenthood and early childhood. Think registry content, milestone tracking, curated product bundles. The expansion areas include school-age and adolescent family milestones like graduations and weddings, and multigenerational legacy and memory keeping. This represents where we see the platform extending over time. So how do we actually convert that opportunity into value? We see 5 clear executable levers. The first, pricing power. Today, we only have a free tier and 1 premium tier. New entry tiers could open volume expansion in our roughly 1.1 million active free users without cannibalizing the existing premium base and localized pricing is a further largely untapped opportunity. Second, conversion runway. 270,000 free users sit against 93,000 paid, an immediate roughly 3x conversion pool. We also have around 810,000 followers, providing real reach for gifting or a partnership led conversion and historically minimal marketing spend against that opportunity. Third, the audience asset. Our database of over 1 million opted in contactable high-value parents and grandparents is genuinely under monetized. There is room to expand revenue and direct-to-consumer commerce at low cost through partnerships. Fourth, product bundling. E-commerce and subscription currently operate as entirely separate offerings with 0 bundled options. Seasonal photo books and gift subscriptions share the same grandparents, and employer benefit or B2B channels remain unexplored. And lastly, global expansion. Roughly 95% of our users are currently in the U.S. despite our iOS app being live in over 100 markets. We already have active unmarketed cohorts in Australia, New Zealand, Canada and the EU, with zero localized marketing spend behind any of them to date. It's worth grounding all of this in the market we're operating in because the tailwinds here are structural, not cyclical. The global parenting and family tech app market was roughly worth $1.9 billion or more in 2025 and is growing around 12% per annum. The photo book and personalized photo keeping market is larger still at roughly $3.5 billion to $5 billion, growing around 6.8% per annum. And there are 132 million births globally each year, 3.6 million in the U.S. alone, which is a genuinely recurring demographically anchored addressable customer base. At the bottom of this slide, you can see the underlying growth drivers for our market. Privacy regulations are tightening across the globe. And there's a sharenting backlash underway too. Parents are becoming increasingly conscious of what they are sharing online and how that data might be used. I want to pause here and share something from one of our users, Molly, McDermott Walsh because it captures why this business exists beyond the numbers. Molly described how Tinybeans helped her through postpartum. If any of you have been new parents or have had friends who have become new parents, you will know this time can be challenging. It's incredible, amazing but challenging. Molly survived by capturing each day, writing the story and captions and processing what she was experiencing in real time. What stood out to us in her story was that when she shared honestly about nursing challenges, a cousin reached out and offered to bring her dinner. Again, if you've ever been a new parent and you've had someone turn up to your door with a meal after a long day, you will know how powerful that is. For Molly, it was support. She said she would never have asked for herself. That's the product working exactly as intended as a private space that becomes a source of real connection for families. Looking ahead, our 3 strategic pillars remain in focus for FY '27, building directly on the work already underway. App discovery, improving how families discover and engage with Tinybeans through social media, community groups, app serviceability and our own audience channels. Brand repositioning; repositioning the Tinybeans from photo sharing to a private place where family moments live with a clearer, more distinctive value proposition in the market. And lastly, product advancements. Extending the Tinybeans experience beyond photos and video through new features and continued product development. These 3 pillars are deliberately connected. Discovery brings people in, repositioning tells them why it matters and product keeps them engaged for the long term. Here's a quick corporate snapshot for those less familiar with the stock. And here, we have a brief overview of the team leading the business. It is a Board and management group with genuine operating depth across digital media, finance and consumer subscription businesses. So if you are here as an investor already, like I said before, thank you for supporting us. For those of you on the call considering investing, let me give you the answers to why Tinybeans and why now. We are a category leader in privacy-first family memory technology, meaningfully differentiated from mainstream social media. We've made real progress on the path to profitability, 3 consecutive quarters of positive operating cash flow and our first full year of positive operating cash flow in FY '26. We're operating in a growing market. structurally supported by regulatory and privacy tailwinds rather than working against them. We have a genuine growth engine the combined Tinybeans and Qeepsake platform underpinned by a disciplined, repeatable M&A playbook. And we have a clean balance sheet, $1.64 million in cash, no debt. giving us the flexibility to keep executing on the priorities I've just outlined. Thank you again for your time today. As I've said here, I really believe this was the year Tinybeans came into its own. And I'm so excited to take us through this next financial year. I'll now hand it back over to Willy for the Q&A.

Thank you, Becca. Thank you, Tracy, for that. Really appreciate it. Now as the questions are starting to come in, please remember, you could submit your questions via the Q&A function. We will do our best to get to them. And if we don't, rest assured, we will come back to you directly. So okay, Tracy, I'm going to send this one your way. What can investors expect to see from the brand repositioning work? And what impact are you hoping it will have on the company performance?

Yes. The repositioning work is about sharpening our value proposition. It's not a slow rebrand. So we'd expect to be able to speak to early market response within the first couple of quarters.

Okay. Great. Thank you. Rebecca, what's the medium-term revenue mix you're targeting between subscription and e-commerce?

We don't have a specific target mix between subscription and e-commerce. Right now, we're at around 3/4 of subscription revenue and the remaining e-commerce and advertising. We're pretty happy with that. We are looking to expand our e-commerce range and place more of a focus on advertising and partnerships. So we'll be working through that this year, but we're pretty comfortable with the revenue mix as it stands.

Okay. Great. Rebecca, I'm going to send this one your way as well. Someone's asked EBITDA improvement was partly offset by a step-up in customer acquisition spend. Was that a one-off seasonal push around Mother's and Father's Day? Or should we expect elevated CAC investment to continue into the next financial year?