What's driving Tinybeans shares higher?

Investors are scrambling to get a parcel of Tinybeans shares after the company updated the market with a forecasted Q2 record performance.

According to the release, Tinybeans advised that it saw strong trading conditions in October and November, with December remaining favourable.

Sales for the end of the second quarter are projected to be about US$3.5 million. This represents a 53% increase on the prior corresponding period.

In addition, advertising revenue is on track to reach over US$3 million, up 57% compared against Q2 FY21. The company noted that this is being driven by the new single integrated brand proposition. In particular, the growing tier brand partners and larger average campaign sizes with YouTube Kids as the exclusive relaunch sponsor.

Monthly recurring revenues from subscriptions are projected to double to over US$140,000, compared to US$72,000 in September 2021.

Total paid subscribers stand at 42,000 with more people engaging with the company's platform. Trial to paid conversion came to more than 80%, 8 times higher than the industry standard.

What did the CEO say?

Tinybeans CEO, Eddie Geller was excited to deliver the strong results, saying:

After a successful first quarter of FY22, we are absolutely thrilled to have such a strong follow up by delivering another record revenue quarter. The current quarter has had significant change including a new website launch, and the introduction of the Beanstalk subscription product. The value proposition for parents remains high and significant effort continues to refine and optimize the newly released products to ensure they are delivering successfully for all our customers.

The Company is forging ahead in executing its strategy to build an award-winning platform where parents go to raise amazing kids, driving multiple complementary revenue streams. This is a testament to the team and the value proposition to parents and brands. This significant revenue growth and early indications of conversion to our paid subscriber model has set us up for an exciting 2022, especially given the exciting product roadmap ahead.

About the Tinybeans share price

Over the past 12 months, the Tinybeans share price has plummeted in value, representing a 55% loss for shareholders. Throughout the year, the company's shares have continued on a downwards trajectory.

It's worth noting that the Tinybeans share price is currently a whisker away from its multi-year low of 50.5 cents.

Based on today's price, Tinybeans commands a market capitalisation of roughly $38.7 million, with approximately 57.86 million shares outstanding.

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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.

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.

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Shares in the tech company finished the day 9.4% higher to $1.16. By comparison, the All Ordinaries Index (ASX: XAO) ended the day 0.73% lower.

So, what's propelling the Tinybeans share price higher?

What's fuelling the Tinybeans share price?

Tinybeans has not released any price-sensitive news that could explain today's bullish price action.

The last piece of news from the tech company, on September 13, was market 'non-sensitive' and related to a summary of an investor conference call.

In an investor conference meeting earlier this month, the company's management discussed its performance for FY21.

Additionally, Tinybeans also detailed its plans for FY22, including the company's new subscription model.

How did Tinybeans perform in FY21?

Late last month, Tinybeans released its full-year report for FY21. The Tinybeans share price jumped into the green on the record result.

Key operational highlights from the report included:

• Revenue increased 102% on the prior corresponding period to US$8 million;
• Monthly active users lifted 16% to 4.33 million users; and
• Net loss after tax of US$3.1 million, down 34.8%.

Tinybeans noted the company was able to achieve great sales momentum through the year. The company attributed this to an increase in advertising revenues, which jumped by 125% to US$6.75 million. 

In addition, Tinybeans also reported a 23% increase in subscription revenue of US$860,000.

For the full year, the company also boasted a strong balance sheet, noting a cash balance of US$2.16 million.

More on Tinybeans

Tinybeans is a free social media platform developed in Australia and targeted towards parents who want to share photos and videos of their children within a secure community.

In particular, the company looks to address the growing issue of cyber security and user privacy.

The Tinybeans 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.

Since the start of the year, the Tinybeans share price has struggled to stay in the green and is 23% lower for 2021.

Shares in the tech company rose 9.43% on Friday but were nearly 11% higher earlier after hitting an intra-day high of $1.175.

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At the time of writing, Tinybeans shares are travelling 4.09% higher to an intraday high of $1.14.

Let's take a look at how the company performed for the period.

Tinybeans share price surges on record result

Investors are snapping up Tinybeans shares after digesting the company's latest results. Here are some of the key operational highlights:

• Revenue increased 102% on the prior corresponding period to US$8 million;
• Monthly active users lifted 16% to 4.33 million users;
• Net loss after tax of US$3.1 million, down 34.8%;

What happened in FY21 for Tinybeans?

Tinybeans achieved sales momentum throughout the year, largely driven by advertising revenues, up 125% to US$6.75 million. The broader rebound in United States advertising saw a number of brand partners and larger average campaign sizes.

In addition, subscription revenue grew 23% to US$860,000 due to improved conversion of existing users to paying subscribers.

The company invested more than US$2.5 million in product growth initiatives with early results beginning to materialise.

Tinybeans declared a cash balance of US$2.16 million and an average operating burn rate of US$0.4 million per quarter.

What did management say?

Tinybeans CEO Eddie Geller commented on the milestone achievement, saying:

We are pleased to report Tinybeans' record-level operating performance during FY21. The rebound in COVID-19 impacted industries, such as travel and tourism, contributed to these record results, and we were pleased to see momentum build in our subscription revenues throughout the fiscal year.

FY22 outlook for Tinybeans

Looking ahead, Tinybeans did not provide much for its earnings or profit guidance for the new financial year. However, Mr Geller spoke about FY22 promising to be the most successful year yet, adding:

We are launching an array of new product upgrades that we believe will support acceleration in our consumer subscription revenues, and we aim to drive continued growth in advertising revenues through enhancing ad integration and adding new in-demand features.

We see our photos and sharing platform expanding as we double down on new areas of engagement that align with our vision of content, community, commerce and related services.

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At the time of writing, the family-focused social media platform company's shares are up 3% to $1.25.

Why is the Tinybeans share price rising on Monday?

The rise in the Tinybeans share price today has been driven by the release of an announcement relating to its plan to list on the Nasdaq index.

According to the release, the company has appointed Grant Thornton Audit as its new auditor with immediate effect.

It made the move in support of its planned listing on Nasdaq. This is because the Nasdaq requires a company to have an auditor that is registered with the Public Company Accounting Oversight Board in the United States.

Why is Tinybeans listing on the Nasdaq?

Tinybeans advised that its decision to list on a major U.S. exchange is aligned with its increasing operational and revenue shift to the United States, as well as its subscription growth strategy.

But don't panic, nothing will happen with your Tinybeans shares if you're a shareholder. Tinybeans intends to maintain its primary listing on the ASX and expects to be dually listed on the ASX and Nasdaq.

Tinybeans CEO, Eddie Geller, commented: "Tinybeans has had a strong presence in the United States ever since we established Tinybeans USA in New York in 2014. Today, nearly 100% of our revenue—and most of our brand partners and subscribers—are based in the U.S., helping to double our revenues for FY21. Grant Thornton is already engaged in the independent audit of our FY21 results. We look forward to releasing our full year results in late August."

The Tinybeans share price has been a strong performer over the last 12 months. Following today's gain, its shares are now up over 41% since this time last year.

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At the time of writing, the family-orientated social media platform's shares are swapping hands for $1.30, up 19.27%.

Record results pushing Tinybeans share price higher

Tinybeans, which is an ASX-listed small-cap share, reported a surge in revenue for FY21 which sent its share price upwards.

According to the release, in Tinybeans' fourth quarter, the company recorded a record revenue of US$2.58 million, up 70% from US$1.52 million in Q4FY20.

Meanwhile, revenue for the full year was also a record at US$8.23 million. This represents an increase of 109% on the prior year. It seems that the biggest quarter and year for the company has investors scrambling to buy in early trade.

Speaking on the milestone result, CEO Eddie Geller said:

During the pandemic, we purposefully set out to strengthen our sales and marketing capabilities, enhance our appeal to brand partners and subscribers, upgrade product development and ensure our technology platform is robust and highly scalable. These strategic initiatives are delivering accelerated growth, while laying the foundations for ongoing progress in the coming fiscal year and beyond.

Monthly active users of the platform climbed to 4.33 million by the end of the quarter, an increase of 16% on the prior corresponding period (pcp).

Breaking it down and looking ahead

The company delivered record numbers across all revenue streams, all of which were organic.

Breaking it all down, subscription revenue provided the smallest amount of growth in the quarter with an increase of 19% pcp. While the fastest growth was delivered by the company's e-commerce segment, albeit from a very small base of US$20,000.

In dollar terms, advertising revenue brought in the most substantial increase. Thanks to a rebound in US advertising, Tinybeans ad revenue jumped 82% to US$2.27 million.

Lastly, the company stated it is entering the new financial year with momentum. New products are in the pipeline which it expects should accelerate customer revenues. Back in April, Tinybeans unveiled its integration of pets into the family platform.

Following the Tinybeans share price gain, the company's market capitalisation is now $59 million.

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At the open, shares in the baby-parent-centric social media platform jumped 5.1%. Although, the move lost momentum throughout the day. The Tinybeans share price settled the day with a 0.3% gain to $1.47 per share.

Fur babies welcome

Previously, Tinybeans has been focused on providing a private social network for parents to share their baby's moments with loved ones. However, today marks the entrance of 'Pets', which will be a complementary addition.

The company has built a business model around a "freemium" offering. That means free users of the platform receive advertisements tailored to the infant/child's age. With such targeted placements, advertisers pay Tinybeans for the viewership.

In the announcement, the company noted an overwhelming demand from both Tinybeans' families and brand partners. The demand lifted by a surge in pet adoptions, with 11 million United States households adopting since the pandemic.

Tinybeans expects the new product to result in deeper engagement from existing families — as well as new 'pet-only' families.

Following a successful beta test earlier in the year, the company expects to launch the new pet features in early May.

More revenue jolts Tinybeans share price

The initial jump in Tinybeans' share price this morning was likely in relation to the additional revenue from the new product.

According to the release, Tinybeans has secured a new US$500,000 agreement over an initial 6-month period. The deal is with Hill's Pet Nutrition Inc, which is a subsidiary of Colgate-Palmolive.

Revenue from Hill's sponsorship is expected to be recognised mostly during Q4 FY21 to Q1 FY22.

Adding to the news, CEO Eddie Geller commented:

We're excited to broaden our platform to include the pets of our existing families and to welcome new pet-only families. This new feature not only services our existing users with a richer experience that caters to their entire family, but also broadens the user acquisition funnel to millions of pet parents who treat their pets like children.

The company's market capitalisation is now $67.7 million after today's move in the Tinybeans share price

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Tinybeans sneakily released its announcement 10 minutes before market close, at which point the share price had already taken a 6.5% dive.

So, what are the numbers?

The numbers shouldn't be too much of a surprise to the market, as it is essentially the accumulation of September's quarterly report and January's report. However, half-year reports can sometimes include amendments and adjustments that were not originally captured.

First of all, Tinybeans' revenue for the first half came in at a total of $5.633 million. This represents an increase of 141% compared to the previous corresponding period (pcp).

The company also highlighted the following significant items in the half:

• Advertising revenue reaching over $4.72 million, an increase of 185% pcp
• Subscription revenues increased to $507,000, an increase of 18% pcp
• Monthly active users (MAU) reached over 4.8 million, an increase of 253%
• Cash balance of $4.46 million as at the end of December.

Tinybeans' advertising revenue benefitted from both the renewal of existing advertisers and the addition of new ones. The Australian company now boasts an impressive list of advertisers including Apple, Netflix, Amazon, Google, and Walmart.

Given that the premium service of the Tinybeans app has an annual option, the retention rate is important. Based on the report, premium subscriptions maintained a retention rate of 92%.

On the bottom line, Tinybeans reduced the net loss to $1.073 million, down from a loss of $1.873 million. The company finished the half with a cash balance of $4.464 million, declining from $5.220 million at the end of June 2020.

Growth in the sights of management

CEO, Edward Geller, outlined that the company is still in its very early stages of what it aspires to be. Currently, Tinybeans is fundamentally a photo-sharing app for parents with children/babies. However, Mr. Geller sees the company evolving into a platform that parents use daily.

Mr. Geller further commented on the growth trajectory of Tinybeans:

As announced to the market at the Innovation event, the product roadmap is ambitious, so the right balance of capital investment is needed to ensure its success. Since July 2020, the Company has ramped its capital investment to nearly $1 million per quarter to begin executing on this vision but it is important to note that this is being done prudently with the right balance of revenue growth and cash management.

Tinybeans share price snapshot

The Tinybeans share price appears to have benefitted from a continued emphasis on privacy. The company's share price has risen 23% in the past 12 months. Surprisingly, the small-cap share has not experienced excessive volatility in the past 3 months. 

The company currently has a market capitalisation of $79 million.

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In closing trade this afternoon, shares in the mobile and web-based social media platform are up 18.4% to $1.80.

What did Tinybeans announce?

The Tinybeans share price is shooting higher after the company reported a favourable decision that will extend its reach to US-based investors.

In its release, Tinybeans advised that its OTCQX-quoted ordinary shares are now eligible for electronic clearing and settlement through the Depositary Trust and Clearing Corporation (DTCC) in the US. They will be listed under the code of OTCQX: TNYYF and operate in the same class as ordinary shares.

DTCC is a subsidiary of the Depositary Trust Company (DTC) that manages the electronic clearing and settlement of publicly-traded companies. Securing DTC eligibility means that Tinybeans can be traded in US dollars and in the North American time zone. This promotes a simplified trading process for the company as well as enhancing its liquidity of registered shares.

A range of online brokerage firms such as Ameritrade, Fidelity Investments, Charles Schwab and E*TRADE all offer OTCQX trades.

CEO commentary

Tinybeans CEO Eddie Geller hailed the positive result, saying:

I am delighted to share the news that Tinybeans Group now has DTC Eligibility. We receive requests almost daily from US investors who have had difficulty buying our stock and are extremely pleased to announce that we have obtained DTC eligibility, effective immediately. This means the company's stock can now be traded in USD for those who wish to do so in the American time zone.

This represents an important step forward in increasing liquidity, broadening our shareholder base and building a strong presence for our company within the US capital markets. We would like to thank our DTC filing agent Glendale Securities, our transfer agent AST and our OTC Sponsor and legal advisor Rimon Law for their efforts

About the Tinybeans share price

In the past 12 months, the Tinybeans share price has increased by 26%. The company's shares were hit hard during the COVID-19 rout in March last year, falling to a low of 51 cents. However, they have accelerated since October to touch a 52-week high today.

Based on the current share price, Tinybeans has a market capitalisation of around $81 million.

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Why is the Tinybeans share price soaring

In today's release, Tinybeans announced strong revenue growth and earnings before interest, tax, depreciation and amortisation (EBITDA). In addition, the technology platform that connects parents with loved ones, noted it was operating cash flow positive for the first time in its history.

Revenue for the second quarter reached a record high of $3.13 million, an increase of 157% on the same period last year. Driving the growth was advertising revenue, which rose 223% on last quarter. Moreover, the company noted that all revenue lines exceeded expectations, with the quarter delivering records across advertising, subscription, e-commerce and printing.

However, the company did emphasise that it does not expect advertising revenue to remain at this level moving into the third quarter. This is as a result of annual budgets being reset in the new year.

EBITDA came in at -$124,000, which was a 63% increase on Q1. This number turns positive ($809,000) when the company's growth investments are excluded.

Nonetheless, it was the company's free cash flow metric that stole the show. For the first time since the business started operations in 2012, Tinybeans reported positive free cash flow. Net operating cash flow was $96,000 for the quarter, compared to the $675,000 outflow the quarter prior.

Management comments

Tinybeans CEO Eddie Geller welcomed the results, saying:

I'm thrilled to report a record quarter of strong growth. This is despite COVID-19 disruptions to our operations and to our brand partners. The first half of our financial year has delivered outstanding results across all aspects of the company.

User engagement grew hitting 4.8 million monthly active users, growth of 21% on the last quarter, whilst revenue hit an all-time high of $3.1 million, delivering further growth of 25% compared to the previous quarter.

Today's jump in the Tinybeans share price delivers the company a market capitalisation of $75.2 million.

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What's driving the Tinybeans share price higher?

Investors are today driving the Tinybeans share prive higher after the company updated the market with a forecast record performance for the second quarter of FY21.

According to the release, Tinybeans advised it saw strong trading conditions in October and November, with December remaining favourable.

Revenue for the end of the second quarter is projected to be around $3 million. This represents a 146% increase on FY20's second quarter revenue and a 24% rise above the prior quarter.

The company said premium revenue will reach $280,000, which will reflect a 10% gain on the second quarter of FY20. Total paid subscriptions are expected to reach 23,000.

Reaching over 4.6 million people, monthly active users are forecast to rise a massive 260% over the prior corresponding period, and 15% on the FY21 first quarter result.

Complimenting the robust result, Tinybeans highlighted its advertising wins from both new and existing customers. These include contracts from major retailers Walmart Inc (NYSE: WMT) and Apple Inc (NASDAQ: AAPL).

Further strengthening the company's balance sheet, Tinybeans anticipates receiving $3 million in cash receipts for the second quarter. This represents a 40% lift on the previous period. The company estimates its cash balance will be around $4.2 million at the end of the quarter, which includes a cash burn of $400,000.

What did the CEO say?

Tinybeans CEO Mr Eddie Geller was excited to deliver the strong results. He said:

After a successful Q1-FY21, we are absolutely thrilled to have such a strong follow up by delivering another record quarter.

Metrics are up across all key business drivers. From monthly active users, to revenues to cash. The Company is forging ahead in executing the strategy to build the number one digital parenting platform and drive multiple complementary revenue streams.

This is a testament to the team and the value proposition to parents and brands. This has set us up for an even better 2021 given the exciting product roadmap ahead.

About the Tinybeans share price

The Tinybeans share price has been climbing higher since the middle of August. Shareholders who bought the company's share at that time would now be sitting on gains of around 80% over just a few months.

Tinybeans shares reached a 52-week high of $2.90 in January and a 52-week low of 51 cents in March.

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What's moving the Tinybeans share price?

The Tinybeans share price bounced higher this morning after the company reported a robust result backed by an acceleration in user engagement for the period ending 30 September.

Revenue jumped to $2.5 million, a 123% increase on the prior corresponding period, and 6% on the previous quarter. The record result was achieved by Tinybeans' premium subscription base growing above 21,800 members.

Earnings before interest, tax, depreciation and amortisation (EBITDA) improved, operating at a loss of $331,000. This represented a 50% reduction on the past three months. With high operating margins, the company noted that revenue is closing the gap as the business grows.

Operating cash burn for Q1 FY21 was $815,000, driven by recruitment costs to support new and existing larger advertising partners. Advertising wins included Walmart Inc (NYSE: WMT), Apple Inc (NASDAQ: AAPL), Cooper Companies Inc's (NYSE: COO) CooperVision, Spin Master Corp, Aphabet Inc's (NASDAQ: GOOGL) Google and Moose Toys.

Tinybeans recorded a cash balance of $4.55 million at the end of the quarter.

What did the CEO say?

Tinybeans CEO, Mr Eddie Geller, commented on the positive result. He said:

I'm pleased to report another quarter of strong growth despite COVID disruptions to our operations and to our brand partners…

Historically, Q1 is seasonally a slower quarter in the U.S. advertising market, however, a 15% revenue growth in USD terms during difficult economic times is very promising…

We have plans to significantly grow this offering as more and more content gets integrated across the app. E-commerce is a complementary addition to the platform and a total addressable market in the baby/kids category in the U.S. of over 1 trillion dollars.

FY21 priorities

Tinybeans said it continues to perform well with the COVID-19 backdrop and is focused on executing its growth strategies.

New partnership agreements are being worked on and are expected to be released to the market in due course.

The company is anticipating exponential user growth to begin in FY22, with revenues from its consumer segment to eclipse adverting by FY23. This is due to its ever-growing sales team pushing subscription and e-commerce products and services.

About the Tinybeans share price

The Tinybeans share price has been an impressive performer since the beginning of August, reflecting a gain of more than 50% for shareholders. On today's price, the company has a market capitalisation of just under $58 million.

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Big brand contracts

Since the commencement of July, Tinybeans has signed over A$1 million in new advertising contracts including with two of the big four technology companies. Partners include Apple Inc. (NASDAQ: AAPL), Dorel Juvenile, Google (NASDAQ: GOOGL) (NASDAQ: GOOG) and Walmart (NYSE: WMT).

Additionally, a breakdown of the $1 million contract shows 70% are from new brands signing on to the platform and 30% are contracts with existing brands. 

As a result of the signed contracts, Tinybeans has doubled the forward booked advertising contracts for the rest of the year to $2.3 million. The revenues commence immediately.

Tinybeans believes it demonstrates the increased value of the enhanced platform following the successful integration of Red Tricycle. Additionally, it is well placed to benefit from the pandemic tailwinds of family togetherness and at-home learning.

Management comments

CEO, Eddie Geller commented "Given the summer months are typically slower in the U.S. for advertising, we are thrilled with these recent and important new contract signings. Over $1 million dollars signed in recent weeks is a new company record and reinforces that our enhanced value proposition following successful integration of Red Tricycle is providing more value to our partners than ever before…."

June quarter results

The big contract wins follow an update to the market late last month showing revenue of $2.36 million which is an increase on the prior corresponding period of 83%.

Additionally, the company achieved new advertising wins with Amazon (NASDAQ: AMZN), Penguin Random House, General Mills and YouTube Kids. 

Registered users reached 4.65 million, which represents growth of 39% on the prior corresponding period (pcp). Monthly active users (MAU) grew to over 3.7 million which is an increase of 200% over the pcp. 

About the Tinybeans share price

According to Tinybeans, the company offers a free mobile and web-based technology platform that connects parents with the most trusted digital tools and resources on the planet to help every family thrive. It is available on the Apple App Store and Google Play store. Additionally, the platform helps parents and their family members capture and share their children's life stories.

The Tinybeans share price ended trading today at 98 cents which is represented by an increase of 20.99%. Additionally, its market capitalisation is $44.88 million as a result of today's share price surge. 

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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.

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Aside from the large players, there are a number of good quality stocks in the sector that have reasonable P/E ratios and great growth prospects. Here are 2 stocks you should watch in the ASX tech sector.

Citadel Group Ltd (ASX: CGL)

Citadel Group is a software and services company that specialises in managing information in integrations. The company provides technology solutions to various complex work environments including the state and federal government and the private sector in Australia. Citadel earns the majority of its revenue from long-term managed services and software-as-a-service (SaaS) solutions.

The Citadel share price had a tumultuous 2019, finishing down more than 34% for the year. The company's share price came under pressure earlier last year after Citadel released a trading update revising its earnings guidance for FY19 and announcing the resignation of the company's CEO. Citadel posted a 44% decline in net profit of $10.9 million and 7% decrease in total revenue of $99.2 million.  

Despite the turbulent year, Citadel's business model is still viable as the company evolves from higher margin consulting services to Saas. Citadel is also looking to invest heavily in its delivery and sales capabilities in order to deliver a higher percentage of repeatable revenue.

Tinybeans Group Ltd (ASX: TNY)

Tinybeans is a free social media platform developed in Australia and targeted towards parents 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.

Tinybeans generates revenue through advertising from brands, premium subscriptions and printed products. In the company's most recent quarterly report, Tinybeans saw revenue increase 91% to $1.12 million in comparison to the prior corresponding quarter.

Tinybeans also experienced a 31% growth in monthly active users of 1.23 million, with an engaged user base of 3.5 million members across more than 200 countries. In addition, Tinybeans boasts a 76% retention rate for FY19 and is well poised for accelerating growth with a $5.6 million cash balance.

A report from Goldman Sachs entitled 'Millennial Moms' outlines the market opportunity presented to Tinybeans. According to the report, approximately $1 trillion dollars are spent on goods and services for babies and children. The market opportunity was reflected in the Tinybeans share price, which closed 2019 more than 229% higher, having reached a high of $3.52.

Should you buy?

The tech sector will still be under scrutiny among analysts in 2020. In my opinion, there is still value to be found in the sector with a few companies poised for growth. A prudent strategy would be to keep these companies on a watchlist and wait for positive price action before making an investment decision. 

The post 2 ASX tech shares that could fly in 2020 appeared first on The Motley Fool Australia.

Fast forward 4 months, and the Tinybeans share price surged 260% from where I had sold, reaching an all-time high of $3.52. It is fair to say that I was (and still am) livid and have vowed to never sell based on someone else's opinion ever again.

The Tinybeans share price has been sold-off since hitting its all-time high and is currently trading around $2.20. So, is it a buy? 

What does Tinnybeans do? 

Tinybeans is a free social media platform developed in Australia and targeted towards parents who want to share photos and videos of their children within a secure community. I liked the company's story because it addresses the growing issue of cyber security and user privacy.

The Tinybeans 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 has Tinybeans performed?

At one point this year, the Tinybeans share price was up an astronomical 1,125% for the year, after the company listed at 26 cents and hit an all-time high of $3.52. Tinybeans reported strong FY19 earnings, which saw operational revenue increase 118% from the year prior to $3.9 million.

The company also experienced a 31% growth in monthly active users of 1.23 million, with an engaged user base of 3.5 million members across more than 200 countries. In addition, Tinybeans boasts a 76% retention rate for FY19 and is well poised for accelerating growth with a $5.6 million cash balance.

Tinybeans generates revenue through advertising from brands, premium subscriptions and printed products. In the company's most recent quarterly report, Tinybeans saw revenue increase 91% to $1.12 million in comparison to the prior corresponding quarter.

Should you buy?

A recent report from Goldman Sachs called 'Millennial Moms' paints an optimistic outlook for Tinybeans. According to the report, approximately $1 trillion dollars are spent on goods and services for babies and children. This presents Tinybeans with a great market opportunity, especially with the emergence of complementary technologies.   

All investors share the same experiences of buying or selling to early or too late, its part of the process. Personally, I think it's dangerous to let the fear-of-missing-out impact an investment decision. Some of the worst losses you can have are the result of chasing a company's share price after the majority of the move has occurred. Although the Tinybeans share price has pulled back I am cautious at the moment and will let the price action consolidate before making another investment.

The post Why I regret selling my Tinybeans shares appeared first on The Motley Fool Australia.

The Surry Hills-based start-up is now worth $125 million according to local share market investors. It has that market value based on 38.045 million shares on issue and today's share price of $3.29. This time last year shares changed hands for just 31 cents.

So what's behind the rise of Tinybeans?

The group is a technology platform or app that allows parents to share and collect family photos of their young children. The Tinybeaners claiming that sharing too many photos of children on alternative social networks such as Facebook or Instagram may hurt the children as they grow older.

The Tinybeans app also has specific features providing parental advice, or tracking development milestones for children for example.

The user growth is pretty impressive, with 3.55 million users mainly in the U.S. as at September 30, 2019.

That's up 50,000 on the prior quarter and 27% on the prior corresponding quarter. 

The financials are less impressive with it posting an operating cash loss of $560,000 on revenue of just $1.1 million for the September quarter. It has no debt and $5.1 million cash on hand. 

Anyone can see the main problem is the errr 'tiny' revenues and a balance sheet not exactly flush with cash. 

However, it might be childish to criticise the revenues.

Why?

For now Tinybeans is probably a scale, network effect, or user growth game as it can focus on monetising the business later.

For example if it charged too much to use the platform most parents would be put off and use free alternatives.

This is conceptually similar to the idea that if Facebook had charged users back in 2005 it would have never taken off in the viral way it did. It's always been a scale and network effect game. 

As such we can see the true valuation of the unprofitable Tinybeans is somewhat subjective. I'm not a buyer of shares for now, but its growth rates suggest it's worth watching. 

The post Why I'm kicking myself for missing the Tinybeans 10 bagger appeared first on The Motley Fool Australia.

What does Tinybeans do?

Tinybeans is a free social media platform developed in Australia, aimed at parents who want to capture, store and share photos and videos of their children within a secure community.

The Tinybeans platform is designed to boost online safety and security and maintain user privacy. The application creates a contained, invite-only environment where parents can upload photos and videos of their kids and securely share the content with an approved network.

Tinybeans currently has an engaged user base of 3.5 million members in over 200 countries and generates revenue through advertising from brands, premium subscriptions and printed products.

How has Tinybeans performed?

Earlier this year, Tinybeans reported earnings for FY19, which saw operational revenue increase 118% from the year prior to $3.9 million. The company also experienced a 31% growth in monthly active users of 1.23 million. In addition, Tinybeans boasts a 76% retention rate for FY19 and is well poised for accelerating growth with a $5.6 million cash balance.

In the company's recent quarterly report, Tinybeans saw revenue increase 91% to $1.12 million in comparison to the prior corresponding quarter. The company's strategy to grow sales and revenue involves partnering with larger brands and it has also made progress in growing its advertising sales pipeline.

What has been driving the Tinybeans share price?

The price action reflects great optimism in the current and future growth prospects of Tinybeans. According to the company, a 'Millennial Moms' report from a Goldman Sachs highlights the market opportunity for goods and services for babies and children. According to the report, US$1 trillion is currently spent in the sector, which is forecast to grow even further thanks to the influence of new technologies.  

Should you buy?

Personally, I can't advocate buying shares in a company that has already soared more than 1000% in the year, as that would be poor risk management. The sector looks promising, however I think a more conservative strategy would be to keep Tinybeans on a watchlist and wait for a substantial pull back before making an investment decision.

The post Why the Tinybeans share price is up 1125% in a year appeared first on The Motley Fool Australia.