The Tinybeans Group Ltd (ASX: TNY) share price is soaring on Tuesday morning. This follows the tech company's business update in regards to its new paid subscription model, Beanstalk.
At the time of writing, the company's shares are up 6.25% to $1.02. In earlier trading, they jumped by 10% to $1.06 before partially retreating.
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What did Tinybeans announce?
In its release, Tinybeans advised its subscription offering, Beanstalk, has acquired more than 3,500 new paying subscribers since being launched. The product was integrated in full across the platform in August 2021.
The company's strategy has been to grow consumer subscriptions with recurring revenues to complement its growing advertising revenues. To facilitate this, the model moved from a mostly free experience into a new, comprehensive paid subscription service.
As such, Tinybeans highlighted its advertising revenue is on track to reach record levels in Q1 FY22.
CEO Eddie Geller commented on the news possibly driving the Tinybeans share price today:
The strong early adoption trends we have experienced following the launch of our paid subscription product, Beanstalk, in August highlight the additional value we are delivering to our userbase.
Additionally, we have maintained our momentum in our advertising business, which remains on track to deliver record revenues in Q1 FY22. We believe this is a testament to the success of our efforts to improve the platform experience for our advertising partners and increase engagement from our valued members.
We are proud of the incremental milestones that we have achieved and look forward to providing additional details when we report our results for Q1 FY22.
Quick take on Tinybeans
Developed in Australia, Tinybeans is a social media platform that allows parents to share photos and videos of their children within a secure community.
The platform addresses cyber security and user privacy concerns by creating a contained, invite-only environment. This gives users peace of mind when uploading content and sharing within an approved network.
Tinybeans share price snapshot
Over the past 12 months, the Tinybeans share price has fallen by around 13%. It is also down around 32% year to date.
Based on today's price, Tinybeans commands a market capitalisation of roughly $48 million and has approximately 46.3 million shares outstanding.
