This ASX tech share pushes up 6% on quarterly report

This ASX tech share, Tinybeans Group Ltd, saw its share price gain 6% today on news released from its quaterly report. We take a look at why.

| More on:
assortment of photos of parents and children

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tinybeans Group Ltd (ASX: TNY) share price has been one to watch following its June quarterly report release. The ASX tech share reached 96 cents by the close, an increase of 6.1% for the day.

What is Tinybeans?

Tinybeans is a free social media platform developed in Australia and targeted to parents globally who want to share photos and videos of their children within a secure community. The company's platform is designed to boost online safety by creating a contained, invite-only environment. This allows parents to upload photos and videos of their kids and securely share the content within an approved network.

How did Tinybeans perform in the fourth quarter?

Tinybeans performed very well in the fourth quarter despite the negative impacts of COVID-19. This was seen as users increased by 39%, compared to the prior corresponding period, to reach 4.65 million. Monthly active users also grew to over 3.7 million, an increase of over 160,000 new active users.

Strong performance across the board saw revenues for Q4 reach a record high of $2.36 million, an increase of 93% on the prior year. This record result, however, was adversely affected by reduced advertising spend and the deferment of key campaigns. Also, Tinybeans has $4.3 million in forward booked contracts which, by comparison, is 300% higher than 12 months earlier. This was significantly aided by the successful integration of the Red Tricycle operations.

Another highlight for the company was new advertising wins with great brands including Amazon, Apple, Penguin Random House, General Mills and YouTube Kids. Tinybeans recorded cash receipts of $1.93 million for the quarter with cash burn of $582,000, not including loans from the United States. Tinybeans' cash balance sits at $5.22 million.

Tinybeans CEO, Eddie Geller, spoke of the results saying: "I'm pleased to report that we delivered strong growth for the quarter despite COVID disruptions to our operations and our brand partners. Despite market conditions, the platform saw an increase in new member sign ups and engagements as 'stay at home orders' across the US encouraged more interaction across the platforms."

What's next for this ASX share?

This quarterly report is much needed good news for the ASX micro cap. Its share price has been plummeting in 2020, down 57% for the year. However, while advertisers in the US have begun to resume spending, there is still some uncertainty in relation to the pace at which spending will recover. Tinybeans investors will be hoping for a faster than expected recovery to the pandemic to get this spending back on track.

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Tinybeans Group Ltd. The Motley Fool Australia has recommended Tinybeans Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »

A businessman compares the growth trajectory of property versus shares.
Share Market News

How ASX shares vs. property performed in October

The national home value rose for the 21st consecutive month while the ASX 200 dipped.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
52-Week Lows

Why is the Woolworths share price at its lowest point since 2020?

We haven't seen Woolies shares this low since COVID.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »